CPA Auditing and Attestation (AUD) : Types of Engagements - SSARS
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Example Questions
Example Question #1 : Integrated Audits & Attestation Engagements
One of the general conditions for SSARS engagements contains the phrase “presumptively mandatory requirements”. Under this definition:
Auditors must comply with requirements
Noncompliance is allowed it the procedure is deemed ineffective
Auditor judgement prevails
Auditors must comply except where it is not cost efficient to do so
Auditors must comply with requirements
The concept of presumptive mandatory requirements assumes that in the absence of persuasive evidence, the auditor must comply with the pronouncement.
Example Question #2 : Integrated Audits & Attestation Engagements
Auditors should not accept and engagement under SSARS if they question:
Managements integrity
Independence requirements will not be satisfied
Information needed may not be available
All of the answer choices are correct
All of the answer choices are correct
Under SSARS guidance an auditor should not accept an engagement if they are concerned about management integrity or the availability of information. An engagement should also not be accepted if independence requirements are impaired.
Example Question #3 : Integrated Audits & Attestation Engagements
Jim Jones, CPA has been engaged by management to assist them in the preparation of financial statements. This engagement qualifies as a:
Compilation
Attestation
Review
Audit
Compilation
A compilation engagement is one in which the accounting firm assists management with the preparation of its financial statements.
Example Question #4 : Integrated Audits & Attestation Engagements
A CPA auditor has determined that a client which had received a federal grant, fraudulently reported information to the federal government. Management of the client refuses to recognize the fraud. Of the following parties, which should the auditor contact first?
The state attorney general's office
The recipiencts of the client services
The agency that provided the grant
The state board of accountancy
The agency that provided the grant
First, the auditor should attempt to reach the agency that provided the grant in reporting the fraud. The others listed are not required to contact.
Example Question #5 : Integrated Audits & Attestation Engagements
GAS require a written report on internal control:
Either orally or in writing
In every audit
Only when there are reportable conditions that are significant enough to be material weaknesses
Only when there are reportable conditions
In every audit
GAS requires a written report on every audit of internal control.
Example Question #6 : Integrated Audits & Attestation Engagements
Of the followin SSARS engagements, which requires limited assurance rather than no assurance?
All require limited assurance
Compilation
Preparation
Review
Review
Of the options, preparation and compilation require no assurance whereas review engagements require limited assurance.
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