ExpertHard1 markMultiple Choice
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?
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
A
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).
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