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    PracticeCPA®CPA AUD Practice Exam 2Question 47
    Hard1 markMultiple Choice
    Area I: Ethics & General PrinciplesAUDAttestationMD&A

    CPA · Question 47 · Area I: Ethics & General Principles

    An auditor is performing a review of Management's Discussion and Analysis (MD&A) for a nonissuer. Which of the following statements is TRUE regarding this engagement?

    Answer options:

    A.

    The engagement must be performed under the SSAE (Attestation Standards).

    B.

    The auditor must provide an opinion on the MD&A.

    C.

    The engagement is performed under SSARS.

    D.

    The auditor can perform this service even if they have not audited the related financial statements.

    How to approach this question

    MD&A = Attestation (SSAE). It's not a financial statement, so it's not SSARS. It's not the audit itself.

    Full Answer

    A.The engagement must be performed under the SSAE (Attestation Standards).✓ Correct
    Engagements to examine or review MD&A are performed under the Statements on Standards for Attestation Engagements (SSAE/AT-C).

    Common mistakes

    Confusing MD&A review with a Financial Statement review (SSARS).
    Question 46All questionsQuestion 48

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