ExpertHard1 markMultiple Choice
CPA · Question 73 · Area IV: Reporting
An auditor is preparing a report on a nonissuer's internal control over financial reporting. This engagement is performed under:
An auditor is preparing a report on a nonissuer's internal control over financial reporting. This engagement is performed under:
Answer options:
A.
SSARS (Statements on Standards for Accounting and Review Services).
B.
GAAS (Generally Accepted Auditing Standards).
C.
SSAE (Statements on Standards for Attestation Engagements).
D.
PCAOB Standards.
How to approach this question
Nonissuer Internal Control Audit = SSAE (Attestation). Issuer Internal Control Audit = PCAOB (Integrated Audit).
Full Answer
C.SSAE (Statements on Standards for Attestation Engagements).✓ Correct
An examination of internal control over financial reporting for a nonissuer is an attestation engagement governed by SSAE (AT-C 315). It is not a standard GAAS audit (which covers FS), nor is it under PCAOB (issuers).
Common mistakes
Assuming all audits follow GAAS. Standalone IC audits are Attestations.
Practice the full CPA AUD Practice Exam 5
78 questions · hints · full answers · grading
More questions from this exam
Q01A CPA firm is auditing the financial statements of a nonissuer, TechInnovate Inc. The lead engage...HardQ02During the audit of an issuer, Gamma Corp, the audit firm proposes to provide tax services to the...HardQ03An auditor is performing a Yellow Book audit (GAO Government Auditing Standards) for a state agen...HardQ04A CPA is engaged to audit the financial statements of a nonissuer. During the audit, the CPA enco...HardQ05Before accepting an audit engagement for a new nonissuer client, the successor auditor is require...Hard