Nature and Scope of Engagements
Expect 2-3 MCQs per sitting on engagement types and assurance levels. The #1 AICPA trap is offering answer choices that swap the assurance level between audits (reasonable) and reviews (limited) -- candidates who memorized loosely will pick the wrong one. A frequently missed detail is that SSAE 19 removed the restriction on agreed-upon procedures reports, meaning AUP reports can now be issued for general use. Standards to know 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