In which of the following engagements does the CPA provides limited assurance that no material modifications should be made to the financial statements for them to be in accordance with the applicable financial reporting framework?
A)Review engagement
B)Compilation engagement
C)Audit engagement
D)Material engagement

Question

Quizplus · Accepted Answer

In a review engagement, the CPA provides limited assurance that no material modifications should be made to the financial statements for them to be in accordance with the applicable financial reporting framework. In an audit engagement, the CPA provides reasonable assurance, while in a compilation engagement, the CPA simply presents the financial information provided by the client in the form of financial statements. "Material engagement" is not a recognized term in auditing.

In Which of the Following Engagements Does the CPA Provides