An auditor is preparing a report on a nonissuer's internal control over financial reporting. This engagement is performed under:

Answer options:

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

GAAS (Generally Accepted Auditing Standards).

SSAE (Statements on Standards for Attestation Engagements).

PCAOB Standards.

How to approach this question

Nonissuer Internal Control Audit = SSAE (Attestation). Issuer Internal Control Audit = PCAOB (Integrated Audit).

Full Answer

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

SSAE (Statements on Standards for Attestation Engagements).

An examination of internal control over financial reporting for a nonissuer is an attestation engagement governed by SSAE (AT-C 315). It is not a standard GAAS audit (which covers FS), nor is it under PCAOB (issuers).

Common mistakes

Assuming all audits follow GAAS. Standalone IC audits are Attestations.

Question 72 All questions Question 74

Practice the full CPA AUD Practice Exam 5

78 questions · hints · full answers · grading

More questions from this exam

Q01A CPA firm is auditing the financial statements of a nonissuer, TechInnovate Inc. The lead engage...Hard Q02During the audit of an issuer, Gamma Corp, the audit firm proposes to provide tax services to the...Hard Q03An auditor is performing a Yellow Book audit (GAO Government Auditing Standards) for a state agen...Hard Q04A CPA is engaged to audit the financial statements of a nonissuer. During the audit, the CPA enco...Hard Q05Before accepting an audit engagement for a new nonissuer client, the successor auditor is require...Hard

View all 78 questions →