Flashcards in Attest Engagments Deck (29):
Attest engagements may result in reports related to?
Compliance, Internal control, Computer systems and software, Information supplemental to financial statements, Prospective information, and Performance, physical characteristics, historical events, and analyses
What does trust services relate to?
Webtrust engagements provide assurance related to?
SysTrust engagements provide assurance with respect to?
Reliability of any defined electronic system
Statements on Standards for Attestation Engagements provide information addressing the major attestation services?
Agreed-upon procedures, financial forecasts and projections, pro forma financial statements, internal control over financial reporting, compliance, and management's discussion and analysis
What are the attestation standards a framework for?
Attest function beyond historical financial statements
Does attestation standards provide levels of assurance below that provided by a GAAS audit?
What are the 5 general standards of the attestation standards?
Training, Independence, Performance, Professional knowledge, and Professional judgment
What are the 2 fieldwork standards of attestation standards?
Planning and supervision and Appropriate evidence
What are the 4 reporting standards of the attestation standards?
Subject matter, significant reservations, express conclusions about subject matters, and restrict use of the report
What type of assurance does an examination give?
What type of assurance does a review give?
Does agreed-upon procedures express assurance?
What does a failure to provide a written assertion by the client constitute to?
Agreed-upon procedures attestation engagements may be performed provided that the following conditions exist?
Independence, Agreement of the parties, Measurability and consistency, Sufficiency of the procedures, Use of the report is restricted, Responsibility for the subject matter, Engagements to perform agreed-upon procedures on prospective financial statements
The practitioner's report for agreed-upon procedures should contain the following elements?
Statement that the procedures performed were those agreed to by the specified parties identified in the report, and a description of any agreed-upon materiality limits and statement of restrictions on the use of the report because it is intended to be used solely by the specified parties
What are the 2 types of prospective financial statements?
Financial forecasts and projections
What are financial forecasts based on?
Expected conditions and expected courses of action
What type of use can a financial forecast be?
General and limited use
What is financial projection based on ?
"what if" type of scenario
What type of use can a financial projection be?
Limited use only
How is a practitioner associated with prospective financial statements?
Compilation engagement, examination engagement, and agreed-upon procedures engagement
What are the items that would appear in the practitioner's compilation report?
Statement that the practiitioner has compiled the prospective financial statements in accordance with attestation standards established by the AICPA, Statement that a compilation is limited in scope and does not enable the practitioner to express an opinion or any form of assurance on the prospective financial statements or the assumptions, a caveat that the prospective results may not be achieved, and a statement that the practitioner assumes no responsibility to update the report for events and circumstances occurring after the date of the report
Content of Report based on Examination of prospective financial statements should include?
Statement that the examination was conducted in accordance with attestation standards established by the AICPA, Opinion that the prospective financial statements are presented in conformity with AICPA guidelines and that the underlying assumptions provide a reasonable basis for the forecast or the projection, and for a projection the report should also include a description of the projection's purpose and a restrictive use paragraph
Should an agreed-upon procedures report on prospective financial statements present a disclaimer on whether the statements are presented in conformity with AICPA guidelines and on whether the underlying assumptions provide a reasonable basis for the statements?
Can partial presentations be presented for general use?
What services can be done to pro forma financial statements?
Examined or reviewed
What attest functions can be used for Management's Discussion and Analysis?
Examined or reviewed