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The AICPA assurance service, called CPA Performance Review, attempts to provide users with
An evaluation of whether an entity has reliable measures of performance beyond the traditional financial statements.
CPA Performance Review evaluates whether an entity’s performance measurement system contains relevant and reliable measures for assessing the degree to which the entity’s goals and objectives are achieved. It attempts to provide a more balanced scorecard than just the traditional financial statements.
An auditor observes the mailing of monthly statements to a client’s customers and reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support management’s financial statement assertion(s) of
The existence assertion relates to whether the related balance exists at the balance sheet date. Observation of the mailing of monthly statements as well as observing the correction of reported errors provides evidence that controls may be effective in ensuring that client customers are genuine.
Statements on Standards for Accounting and Review Services (SSARSs) apply to ........
services in connection with the unaudited statements or other unaudited information of a nonpublic entity.
According to PCAOB quality control standards applying to audits, the engagement quality reviewer most likely
Must be an associated person of a registered public accounting firm.
The objective of the reviewer is to evaluate the significant judgments made and the related conclusions reached. (S)he must be an associated person of a registered public accounting firm and may be from outside the firm. Moreover, the reviewer must have the competence to serve as a partner on the engagement and have independence, integrity, and objectivity. But an engagement partner on either of the two preceding audits ordinarily may not be the reviewer.
A financial forecast consists of prospective financial statements that present an entity’s expected financial position, results of operations, and cash flows. A forecast
Is based on assumptions reflecting conditions expected to exist and courses of action expected to be taken.
According to AT 301, a financial forecast consists of prospective financial statements “that present, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and cash flows.” A forecast is based on “the responsible party’s assumptions reflecting conditions it expects to exist and the course of action it expects to take.”