II. Financial Statement Audits - Diff Types of Engagement

Question 1

**An attestation engagement is one in which a CPA is engaged to

Answer 1

Issue a written communication expressing a conclusion about the reliability of a written assertion that is the responsibility of another party.

Note: An attestation engagement is one in which the practitioner is engaged to issue an examination, a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party.

Example of an Attestation Engagement:

An entity engaged a CPA to determine whether the client’s websites meet defined criteria for standard business practices and controls over transaction integrity and information protection.

Note: Because here we have a CPA who examines another person subject matter or assertion about criteria for standard business practices and controls over transaction integrity and information protection__. A third party problem.

Question 2

Which of the following activities would most likely be considered an attestation engagement?

Answer 2

Issuing a report about a firm’s compliance with laws and regulations.

or

An engagement to report on compliance with statutory requirements.

Note:

In performing an attestation engagement, a CPA typically expresses a conclusion about the assertion on the subject matter.