Section 1: 15–25%A1
Nature and Scope of Engagements
Exam Insight
The CPA exam tests whether candidates can distinguish between different types of assurance and non-assurance engagements, and understand the level of assurance each provides. Confusing an audit with a review or a compilation is a guaranteed wrong answer.
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