ExpertMedium1 markMultiple Choice
CPA · Question 34 · Area I: Ethics & General Principles
Which of the following engagements is an 'Attestation' engagement governed by SSAE (Statements on Standards for Attestation Engagements)?
Which of the following engagements is an 'Attestation' engagement governed by SSAE (Statements on Standards for Attestation Engagements)?
Answer options:
A.
A consulting engagement to design a new payroll system.
B.
A preparation of financial statements.
C.
An examination of prospective financial statements.
D.
A review of historical financial statements.
How to approach this question
Distinguish: Audit (SAS/PCAOB), Review/Comp/Prep of Historical FS (SSARS), Everything else like Forecasts/Pro Forma/Compliance/MD&A (SSAE).
Full Answer
C.An examination of prospective financial statements.✓ Correct
SSAEs (Attestation Standards) cover Examination, Review, and AUP engagements for subject matters OTHER than historical financial statements (e.g., Prospective Financials, Pro Forma, Compliance, MD&A).
Common mistakes
Confusing Review of Historical FS (SSARS) with Review of other matter (SSAE).
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