What is meant by the term level of assurance? How does the level of as-
surance differ for an audit of historical financial statements, a review, a compilation, and a preparation engagement?
25-2 (OBJECTIVE 25-1) What is negative assurance? Why is it used in a review engagement
report?
25-3 (OBJECTIVE 25-1) What should auditors do if during a review of financial statements they discover that applicable accounting standards are not being followed?
25-4 (OBJECTIVE 25-1) Distinguish the three forms of compilation reports that a CPA can provide to clients.
25-5 (OBJECTIVE 25-1) List five things that are required of an auditor by SSARS for a compilation.
25-6 (OBJECTIVE 25-1) What steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading?
25-7 (OBJECTIVE 25-1) What are the major differences between a compilation engagement and a preparation engagement?
25-8 (OBJECTIVES 25-1, 25-2) What are the differences between the review reports for a private company under SSARS and for the interim financial statements of a public company?
25-9 (OBJECTIVE 25-2) Explain why a review of interim financial statements for a public
company may provide a greater level of assurance than an SSARS review.
25-10 (OBJECTIVE 25-3) Explain the purpose of an attestation engagement and provide an example of an assertion a CPA could attest to.
25-11 (OBJECTIVE 25-3) You have been asked to provide assurance on information contained in New Dominion’s Corporate Sustainability Report. What standards would you use to perform this engagement?
