Which of the following is an 'Examination' engagement under SSAE?

Answer options:

A review of Management's Discussion and Analysis (MD&A).

An engagement to express an opinion on whether a client's internal control over financial reporting is effective.

A compilation of prospective financial statements.

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

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.

Question 69 All questions Question 71

Practice the full CPA AUD Practice Exam

78 questions · hints · full answers · grading

More questions from this exam

Q01A CPA firm is auditing a large public company. The audit partner's spouse has just been promoted ...Hard Q02During the acceptance phase of a new audit engagement for a private company, the successor audito...Hard Q03A CPA firm is designing its system of quality control. Which of the following policies would most...Medium Q04An auditor is establishing an understanding with a client regarding the services to be performed ...Medium Q05Under the AICPA Code of Professional Conduct, which of the following fee arrangements is prohibit...Medium

View all 78 questions →