Preparation vs Compilation vs Review Engagements - CPA Auditing and Attestation (AUD)

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Question

The Compilation audit report will:

Answer

Although the firm may assist management in the preparation of statements, the compilation audit report will state that the report is the responsibility of management.

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Question

A review engagement provides what level of assurance regarding the applicable financial framework

Answer

A review engagement provides limited assurance. Limited assurance is given that the financial statements comply with the applicable reporting framework.

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Question

A review engagement should express which of the following terms:

Answer

AR Section 90; review of financial statements. Section .04 states that the engagement determines: management responsibility, the auditor’s responsibility, and management objectives.

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Question

Regarding the review of financial statements of a non-issuer performed in accordance with SSARS, the CPA is required to obtain:

Answer

The CPA is required to obtain a representation letter from management for all financial statements and periods covered by the review report.

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Question

Of the following statements, which is correct regarding a review of a nonpublic entity financial statements in accordance with SSARS?

Answer

In order to issue a review report on the financial statements of a nonpublic entity, the accountant must be independent.

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Question

When a preparer conducts a preparation engagement, the accountant should:

Answer

With a preparation requirement, the preparer must include a statement on each page of the financials. If he or she cannot, these two options are the only options.

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