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Occasionally, an accountant in a review engagement of a nonissuer may feel that even modification of the standard report is not adequate to indicate the deficiencies in the financial statements taken as a whole. If this is the case, the accountant should
Withdraw from the engagement.
The statements may contain a material departure from the applicable reporting framework. If the statements are not revised, the accountant considers whether modification of the report is adequate to disclose the departure. If the accountant believes that modification of the report is not adequate, (s)he should withdraw from the engagement and provide no further services with respect to the statements. The accountant may wish to consult legal counsel in such circumstances (AR 90).
Examination report issued under the WebTrust service expresses an opinion relating to one or more of the following principles:
security, privacy, availability, processing integrity, and confidentiality.
Is preparing the income statement and balance sheet for one year in the future based on client expectations and predictions considered an attestation engagement
A CPA is engaged to examine management’s assertion that the entity’s schedule of investment returns is presented in accordance with specific criteria. In performing this engagement, the CPA should comply with the provisions of
Statements on Standards for Attestation Engagements (SSAEs).
The AICPA’s Statements on Standards for Attestation Engagements (SSAEs) cover attest engagements. Examining management’s assertion that the entity’s schedule of investment returns is an example of an examination engagement that falls under the guidelines of the SSAEs.
CPA firms should have policies and procedures to determine whether to accept or continue a client or to perform a specific engagement. The firm’s policies and procedures should provide reasonable assurance that it
(1) has considered the integrity of the client and the risks involved, (2) is competent, (3) has the necessary capabilities and resources, and (4) is able to comply with applicable requirements (QC 10).
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