An Attestation Engagement Is One in Which a CPA Is

question 49

Multiple Choice

An attestation engagement is one in which a CPA is engaged to:

• A)issue, or does issue, a report on subject matter or an assertion about the subject matter that is the responsibility of another party.
• B)provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.
• C)testify as an expert witness in accounting, auditing or tax matters, given certain stipulated facts.
• D)assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance.

---

Definitions:

Terms of Sale

Conditions agreed upon by the buyer and seller regarding the delivery, payment, and transfer of ownership of goods.

Credit Terms

The conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the duration of the loan.

General Journal Entries

A record of financial transactions in the order they occur.

Invoice Price

Invoice Price is the price listed on an invoice for purchased goods or services, including the base cost and added fees or taxes before any discounts.