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CPAs become involved in a variety of types of engagements. For each of the following statements, indicate whether it relates to an examination (E), review (R), or agreed-upon procedures (A) engagement. If the statement does not relate to examinations, reviews, or agreed-upon procedures, reply N.
Statement
Type of Engagement
a. When financial statements are involved, this is referred to as an audit.
b. The term "We are not aware of any material modifications that should be made" is often included in the report.
c. The report issued provides a summary of procedures followed and findings.
d. The report issued provides "reasonable assurance."
e. The procedures involved are generally limited to inquiry and analytical procedures.
f. The report issued provides "absolute assurance."
g. The report issued provides "limited assurance."
h. The procedures followed are agreed upon with the specified user or users.
i. This type of engagement provides more assurance than a review.
j. The CPA need not be independent to perform this service.
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