SSAEs - General

Question 1

Attest Engagement

Answer 1

When a CPA practitioner is engaged to issue (or does issue) an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about the subject matter that is the responsibility of another party. (Now the CPA can report directly on the subject matter or on the responsible party’s assertion, which previously required a written assertion!)

Question 2

3 Types of Attestation engagements

Answer 2

Examination
Review
AUP

Question 3

List the 11 Attestation Standards

Answer 3

5 General (TKCID)

• Technical Training
• Knowledge: in the ‘subject matter of assertion’
• Criteria - suitable&available
• Independence
• Due Professional Care

2 Standards of Fieldwork (PE)

• Planning and Supervision
• Evidence

4 Report Standards (NCRL)

• Nature of Engagement
• Conclusions
• Reservations: about the engagement or about the presentation
• Limited Use

Question 4

SSAE Hierarchy

Answer 4

1. Standards
   - unconditional
   - presumptive mandatory
2. interpretive publications
3. Other attestation publications - no authority

Question 5

Name two types of Criteria standard

Answer 5

Suitable - Objective, measurable, complete, and relevant. (Criteria established by due process procedures are usually suitable.)
Available - Can be publicly available: in the presentation of the subject matter or assertion, in the practitioner’s report, understood by users; or available to the specified parties.

Question 6

Examinations

Answer 6

• High level of assurance (low attestation risk)
• Identify any material deficiencies
  
  • for a scope limitation (issue qualified or disclaimer)
  • problems with presentation (issue qualified or adverse opinion)

*EofM and Other paragraph also applicable

• can be issued for general distribution
• describe the nature of the engagement and the scope of work performed
• refer to the applicable professional standards governing the work

Question 7

Review

Answer 7

• lower level of assurance (moderate/negative)
• moderate level of attestation risk

A. Should identify any material deficiencies noted;
B. Can also add an explanatory paragraph to emphasize other matters; and
C. Indicate that the scope of the work was less than an examination and disclaim an opinion.

Question 8

AUP

Answer 8

Where the practitioner and the specified parties agree upon the specific procedures to be performed (and the specified parties take responsibility for the sufficiency of the procedures for their purposes!).

• Conclusions presented as PROCEDURES AND FINDINGS
• no assurance given (must disclaim an opinion)
• Restrict the distribution
• materiality does not apply

Question 9

Chart on different SSAE procedures/reports

Answer 9

Exam: general matters, forecasts and projections, pro forma information, MD&A

Review: general matters, pro forma information, MD&A

AUP: general matters, forecasts and projections, pro forma information, MD&A