ExpertMedium1 markMultiple Choice
CPA · Question 70 · Area 4: Reporting
Which of the following is an 'Examination' engagement under SSAE?
Which of the following is an 'Examination' engagement under SSAE?
Answer options:
A.
A review of Management's Discussion and Analysis (MD&A).
B.
An engagement to express an opinion on whether a client's internal control over financial reporting is effective.
C.
A compilation of prospective financial statements.
D.
Agreed-upon procedures regarding royalty calculations.
How to approach this question
Examination = Audit equivalent for Attestation = Opinion (Positive Assurance).
Full Answer
B.An engagement to express an opinion on whether a client's internal control over financial reporting is effective.✓ Correct
An engagement to express an opinion on whether a client's internal control over financial reporting is effective.
Under SSAE (Attestation Standards), an Examination is analogous to an Audit. It results in a positive opinion (reasonable assurance). A Review results in a conclusion (limited assurance).
Common mistakes
Confusing Examination with Review.
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