A large PA firm has assessed evidence collected during an engagement.Criteria used to assess the financial statements were International Financial Reporting Standards (IFRS).A high level of assurance was obtained.The type of engagement conducted was
A)an audit.
B)a review.
C)management consulting.
D)a compilation.

Question

Quizplus · Accepted Answer

An audit is the only type of engagement that provides a high level of assurance and involves the assessment of financial statements against a specific set of criteria, such as IFRS. Reviews provide limited assurance, management consulting involves providing advice rather than assessing financial statements, and compilations involve presenting financial information without providing any assurance on its accuracy.

A Large PA Firm Has Assessed Evidence Collected During an Engagement.Criteria