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1. Which of the following is an example of an attestation
engagement?
A) A review of a company's financial statements by an
independent auditor
B) A compilation of a company's financial statements by a
bookkeeper
C) A preparation of a company's tax return by a CPA
D) A valuation of a company's assets by an appraiser
Answer: A. An attestation engagement is one in which a
practitioner expresses a conclusion about the reliability of a
subject matter or an assertion that is the responsibility of
another party. A review of financial statements is an
attestation engagement, while the other options are not.
2. What is the difference between a positive and a negative
assurance in an attestation report?
A) A positive assurance states that the subject matter or
assertion is fairly presented, while a negative assurance
states that nothing came to the practitioner's attention that
causes them to believe otherwise.
B) A positive assurance states that the practitioner
performed sufficient procedures to obtain reasonable
assurance, while a negative assurance states that the
practitioner performed limited procedures to obtain
moderate assurance.
C) A positive assurance states that the practitioner is
responsible for the subject matter or assertion, while a
negative assurance states that the responsibility lies with
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