An auditor is performing a 'review' of the Management's Discussion and Analysis (MD&A) of an issuer. This engagement is performed under which set of standards?

Answer options:

SSARS (Statements on Standards for Accounting and Review Services).

PCAOB Auditing Standards.

SSAE (Statements on Standards for Attestation Engagements).

GAO Government Auditing Standards.

How to approach this question

MD&A is NOT 'Historical Financial Statements'. Therefore, it is NOT SSARS or SAS. It is SSAE (Attestation).

Full Answer

C.SSAE (Statements on Standards for Attestation Engagements).✓ Correct

SSAE (Statements on Standards for Attestation Engagements).

Reviews of MD&A are governed by SSAE (Attestation Standards), specifically AT-C 395 (or AT 701). They are not reviews of financial statements under SSARS.

Common mistakes

Thinking 'Review' always means SSARS.

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