Four Different Engagements That the Auditor Can Complete Are Compilation,bookkeeping,audit,and

question 41

Multiple Choice

Four different engagements that the auditor can complete are compilation,bookkeeping,audit,and review.Rank these engagements with respect to the level of assurance provided from highest assurance level to lowest assurance level.

• A)audit,review,compilation,bookkeeping
• B)audit,compilation,review,bookkeeping
• C)review,audit,compilation,bookkeeping
• D)bookkeeping,compilation,review,audit

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Definitions:

Register Securities

The process of documenting ownership of stocks or bonds with the appropriate regulatory body.

1933 Securities Act

A U.S. law enacted to ensure more transparency in financial statements so investors can make informed decisions; it requires securities to be registered with the Securities and Exchange Commission.

Criminal Prosecution

The process by which a person accused of committing a crime is charged, tried, and judged, potentially leading to punishment.

Registration Statement

A description, filed with the SEC, of securities being offered for sale; includes an explanation of how proceeds from the sale will be used, information on the registrant’s business and properties, and certified financial statements.