Reasonable assurance includes the understanding that there is a remote likelihood that material misstatements will not be prevented or detected on a timely basis. Although not absolute assurance, reasonable assurance is, nevertheless, a high level of
assurance. Analytical procedures are a type of evidence used during an audit. … Analytical procedures involve comparisons of different sets of financial and operational information, to see if historical relationships are continuing forward into the period under review. A review provides limited assurance that the financial statements conform to generally accepted accounting principles. This is a negative assurance. An attest engagement is one in which a practitioner is engaged to issue or does issue an examination, a review,
or an agreed-upon procedures report on the subject matter or an assertion about the subject matter, that is the responsibility of another party. assurance engagement means an engagement in which an Auditor/ Audit Firmexpresses an opinion about the outcome of the evaluation or measurement of a subject matter
against criteria and is aimed to enhance the degree of confidence of the third parties towards such subject matter. Which of the following would best be described as an attest engagement? An
engagement to assess the effectiveness of an internal control system. The Sarbanes-Oxley Act of 2002 generally allows public accounting firms to Provide tax consulting to an audit client with audit committee approval. (1)
Information obtained indirectly from outside sources is the most reliable audit evidence. Confirmation of accounts receivable balance. Confirmation of accounts receivable balance is considered to be the most reliable because it… Which of the following generally provides the most reliable evidence?Objective evidence is more reliable, and hence more persuasive than subjective evidence. The two most important factors when determining the appropriate sample size in an audit are the auditor’s expectation of misstatements and the objectivity of the evidence. Which of the following types of evidence would an auditor most likely examine to determine whether controls are operating as designed?To determine whether internal controls are operating as designed, an auditor would most likely collect client records documenting the use of EDP programs. Which of the following is an element of a system of quality control that should be considered?The quality control policies and procedures applicable to a firm’s accounting and auditing practice should encompass the following elements: Independence, Integrity, and Objectivity. Personnel Management. Acceptance and Continuance of Clients and Engagements. When an auditor assesses control risk at the maximum level the auditor is required to document?If control risk is assessed below the maximum level, the auditor is required to 1) identify “specific internal control policies and procedures relevant to specific assertions that are likely to prevent or detect material misstatements in those assertions” and 2) perform “tests of controls to evaluate the … Which is an assurance engagement?“Assurance engagement” means an engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. What are examples of assurance engagement?For example, an audit of financial statements is an example of a reasonable assurance engagement. Auditors will express their opinion based on the result of their examinations. Those opinions will be based on a positive form. What are the types of assurance engagement?Types of assurance engagement
Which attestation service provides the lowest level of assurance on a financial statement?Compilations provide the lowest level of assurance of financial statement services. What is attestation give examples of attest engagements?An attestation engagement is an arrangement with a client where an independent third party investigates and reports on subject matter created by a client. Examples of attestation engagements are: Reporting on financial projections made by a client. Reporting on pro forma financial information formulated by a client. What is the objective of assurance engagement?The objective of an assurance engagement is to obtain sufficient appropriate evidence to express a conclusion, providing reasonable or limited assurance, as to whether the audited body has complied with the specified requirements of the appropriate legislation (the ‘criteria’) in all material respects. What is the difference between an assurance engagement and an audit engagement?The audit is the process of examination of the accounting information closely which is presented in the financial statements of the organization. While, assurance is a set of the processes of analyzing and assessing processes, operations, procedures, etc. What does reasonable assurance mean?“Reasonable Assurance” is an unemployment insurance term that indicates a school employee has a contract (written or implied) that indicates they will likely be employed for the following school year, term, or the remainder of a school term. What is assurance engagement risk?For a reasonable assurance engagement, the practitioner needs to reduce the assurance engagement risk (the risk that an inappropriate conclusion is expressed when the information on the subject matter is materially misstated) to an acceptably low level as the basis for a positive form of expression of the practitioner’s … Which of the following statements would most likely appear in an auditor’s engagement letter?An auditor’s engagement letter most likely will include Management’s acknowledgment of its responsibility for maintaining effective internal control. What are some of the factors that influence the level of assurance obtained through substantive audit tests?Several factors influence how much substantive testing is performed including the nature of the test, the level of assurance necessary, the type of evidence required, and the complexity of the client’s data capturing systems. What are the five major types of analytical procedures in auditing?Typically, five types of audit procedures are normally used by auditors to obtain audit evidence. Those five audit procedures include Analytical review, inquiry, observation, inspection, and recalculation. CPA Types of assurance engagementshttps://www.youtube.com/watch?v=raDHqZeryhU Sufficient Appropriate Evidence | Auditing and Attestation | CPA Exam01. Introduction to Assurance Engagement and Levels of AssuranceAttestation Engagement | Auditing and Attestation | CPA Examassurance services involve all of the following, except: See more articles in the category: FAQ Back to top button We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies. What is the highest level of assurance in auditing?Audit: The Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor, or as established by general practice.
What level of assurance is allowed with the attestation standards?General-use attest reports should be limited to two levels of assurance: one based on a restriction of attestation risk to an appropriately low level (an examination) and the other based on a restriction of attestation risk to a moderate level (a review).
What is the strongest audit evidence?The strongest form of confirmation is the blank positive confirm. A blank positive confirm asks the third-party to report the client's asset balance back to the auditor without the prompt of the company's recorded balance. This guards against the third-party agreeing with the reported balance out of convenience.
What are the 3 types of attestation service?Conclusion. Audits, reviews and compilations are three very different levels of attestation services available for financial statements, and the information provided above will help you understand the differences and determine which one is appropriate for your business.
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What type of evidence would provide the highest level of assurance in an attestation engagement?
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