Nature and Scope of Engagements
Expect 2-3 MCQs per sitting on engagement types and assurance levels. The most common AICPA trap swaps the assurance levels: audits give reasonable assurance, reviews give limited assurance -- mix them up and you pick the wrong answer. One detail people miss: SSAE 19 removed the use restriction on agreed-upon procedures reports, so AUP reports can now go to general use. Know these cold: AU-C 200 (overall objectives), SSARS 21/25 (reviews, compilations, preparations), and SSAE 18/19 (attestation engagements).
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What AICPA wants you to know
- 1Distinguish between audits, reviews, compilations, and preparation engagements
- 2Identify the level of assurance provided by each engagement type
- 3Understand attestation engagements vs. direct engagements
- 4Explain the role of the auditor in a financial statement audit
- 5Recognize other assurance services such as agreed-upon procedures