CPA Auditing and Attestation (AUD) : Integrated Audits & Attestation Engagements

Study concepts, example questions & explanations for CPA Auditing and Attestation (AUD)

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Example Questions

Example Question #1 : Types Of Engagements Ssae

Of the following, which would not be considered an attest engagement subject to attestation standards?

Possible Answers:

An engagement to review pro forma financial statements

An engagement to examine management's assertion about a subject matter

An engagement to examine a financial forecast

An engagement to review the financial statements of a nonpublic company

Correct answer:

An engagement to review the financial statements of a nonpublic company

Explanation:

Attest engagements covered under SSAE exclude services performed in accordance with SSARS. Since the review of a nonpublic company's financial statements is conducted under SSARS, it is not subject to attestation standards.

Example Question #6 : Types Of Engagements Ssae

Attestation risk is comprised of all of the following risks except for:

Possible Answers:

Inherent risk

Detection risk

Control risk

Financial risk

Correct answer:

Financial risk

Explanation:

Inherent, control, and detection risks are all components of attestation risk whereas financial risk is not a risk-focused on.

All CPA Auditing and Attestation (AUD) Resources

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