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An agreed-upon procedure report is:
An agreed-upon procedure engagement performs specific procedures on a subject matter. These procedures are specified in a contract, by law, or under agreement with management with the auditor reporting on the findings.
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As a pre-condition to an agreed-upon procedure engagement.
As described in section AT 201, a practitioner may accept an agreed-upon procedure engagement “that the practitioner is independent”.
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According to SSAE 18: The auditor should “establish an understanding with the engaging party regarding the nature of the engagement, including the following":
According to SSAE 18, the practitioner should establish an understanding as to whether there are any restrictions to use. Additionally, the practitioner should establish the purpose of the report and whether the report is pursuant to a law, regulation, or contract.
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Of the following standards, which should a CPA firm apply in a review of pro forma financial information?
A CPA should refer to SSAE for a review of pro forma financial information.
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Of the following, which would not be considered an attest engagement subject to attestation standards?
Attest engagements covered under SSAE exclude services performed in accordance with SSARS. Since the review of a nonpublic company's financial statements is conducted under SSARS, it is not subject to attestation standards.
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Attestation risk is comprised of all of the following risks except for:
Inherent, control, and detection risks are all components of attestation risk whereas financial risk is not a risk-focused on.
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One of the general conditions for SSARS engagements contains the phrase “presumptively mandatory requirements”. Under this definition:
The concept of presumptive mandatory requirements assumes that in the absence of persuasive evidence, the auditor must comply with the pronouncement.
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Auditors should not accept and engagement under SSARS if they question:
Under SSARS guidance an auditor should not accept an engagement if they are concerned about management integrity or the availability of information. An engagement should also not be accepted if independence requirements are impaired.
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Jim Jones, CPA has been engaged by management to assist them in the preparation of financial statements. This engagement qualifies as a:
A compilation engagement is one in which the accounting firm assists management with the preparation of its financial statements.
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A CPA auditor has determined that a client which had received a federal grant, fraudulently reported information to the federal government. Management of the client refuses to recognize the fraud. Of the following parties, which should the auditor contact first?
First, the auditor should attempt to reach the agency that provided the grant in reporting the fraud. The others listed are not required to contact.
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GAS require a written report on internal control:
GAS requires a written report on every audit of internal control.
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Of the followin SSARS engagements, which requires limited assurance rather than no assurance?
Of the options, preparation and compilation require no assurance whereas review engagements require limited assurance.
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