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__________ report on subject matter or assertion about subject matter. Responsibility of another
party (managers & auditor) and the responsible party acknowledges responsibility. The CPA
must be independent to perform it.
Attestation engagements
_____________ is when the auditor assesses the quality of the information.
Assurance
_____________ is when the auditor issues a report on the quality of information. It is a type of
assurance.
Attestation
,Audit is a type of ____________
attestation
What are the types of attestation and levels of assurance in order of highest to lowest?
Examination (Highest level of assurance)
-Similar to an audit
-High level of assurance
Review (Moderate level of assurance)
-Moderate ("negative") level of assurance
-Not allowed on certain engagements
Agreed upon procedures (Special engagement between auditor & client)
-Assurance depends on procedures
______________________________________ are from the Auditing Standards Board (ASB) of the AICPA.
Statements of Standards for Attestation Engagement (SSAEs)
,____________ is similar to fundamental auditing principles. Practitioner's knowledge about subject
matter. Has suitable criteria. Evaluation of internal control not required. And it is restricted
distribution (only for one party)
Statements on Standards for Attestation Engagement (SSAEs)
_________ consists of performing procedures normally associated with an audit or special
engagement (eg. inventory observation, confirmation of receivables, summarize customer
comment cards). Scope is less than in an audit (responsibility of user). Accountant reports
procedures and findings (but no opinion or negative assurance provided). Must restrict
distribution of report to users who established scope of engagement.
Agreed-upon procedures engagements
Financial information representing the financial position, results of operations, and cash
flows for some period of time in the future.
Prospective Financial Information (PFI)
, What are the types of PFI?
financial projection and financial forecast
PFI based on the occurrence of one or more hypothetical events that change existing
business structure.
financial projection
PFI based on expected conditions and courses of action (e.g. no new distribution center)
Financial forecast
The company may be negotiating directly with a single user who has requested prospective
financial information for use economic decisions. This is referred to as ______________. Any PFI
can be used for limited purposes.
limited use
__________ report on subject matter or assertion about subject matter. Responsibility of another
party (managers & auditor) and the responsible party acknowledges responsibility. The CPA
must be independent to perform it.
Attestation engagements
_____________ is when the auditor assesses the quality of the information.
Assurance
_____________ is when the auditor issues a report on the quality of information. It is a type of
assurance.
Attestation
,Audit is a type of ____________
attestation
What are the types of attestation and levels of assurance in order of highest to lowest?
Examination (Highest level of assurance)
-Similar to an audit
-High level of assurance
Review (Moderate level of assurance)
-Moderate ("negative") level of assurance
-Not allowed on certain engagements
Agreed upon procedures (Special engagement between auditor & client)
-Assurance depends on procedures
______________________________________ are from the Auditing Standards Board (ASB) of the AICPA.
Statements of Standards for Attestation Engagement (SSAEs)
,____________ is similar to fundamental auditing principles. Practitioner's knowledge about subject
matter. Has suitable criteria. Evaluation of internal control not required. And it is restricted
distribution (only for one party)
Statements on Standards for Attestation Engagement (SSAEs)
_________ consists of performing procedures normally associated with an audit or special
engagement (eg. inventory observation, confirmation of receivables, summarize customer
comment cards). Scope is less than in an audit (responsibility of user). Accountant reports
procedures and findings (but no opinion or negative assurance provided). Must restrict
distribution of report to users who established scope of engagement.
Agreed-upon procedures engagements
Financial information representing the financial position, results of operations, and cash
flows for some period of time in the future.
Prospective Financial Information (PFI)
, What are the types of PFI?
financial projection and financial forecast
PFI based on the occurrence of one or more hypothetical events that change existing
business structure.
financial projection
PFI based on expected conditions and courses of action (e.g. no new distribution center)
Financial forecast
The company may be negotiating directly with a single user who has requested prospective
financial information for use economic decisions. This is referred to as ______________. Any PFI
can be used for limited purposes.
limited use
