Different types of engagements

Question 1

AICPAs SSARSs (Stmnt on Standards for Acctng and review services)

• applicable when CPA associated with private compny
• engagemnt is less than full-scope audit
• Compilation- financial records into fincl stmnts (no expression on assurance and reliability)
• Review- lower level of assurance, limited procedures

Answer 1

SSAEs (Statemnt on Stnds for attestation engagements)

-when CPA provides ASSURANCE on matters other than historical financl stmnts (non-financl stmnts)

Question 2

RESPONSB. WITH ENGAGEMENTS

• Understandng Client
  written engagmnt letter btw CPA and client entity – public interest under AICPA stnds

Answer 2

• Levels of ASSURANCE
  1. Audit- conveys high level of assurance = positive assurance

2. Review- low level of assurance = moderate assurance
3. Compilation- no assurance on reliablty of finacl stmnts
   * The CPA may convey either a high or moderate level of assurance about nonfinancial statement representations under the SSAEs.