Two Types of Attestation Services Provided by CPA Firms Are

question 14

Essay

Two types of attestation services provided by CPA firms are audits and reviews. Discuss the similarities and differences between these two types of attestation services. Which type provides the least assurance?

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Definitions:

Disbursement Float

Float created before cheques written by a firm have cleared and been deducted from the firm’s account. Disbursement float causes the firm’s own cheque-book balance to be smaller than the balance on the bank’s records.

Net Float

The difference between a firm’s disbursement float and collections float.

Marketable Securities

Financial instruments and assets that can easily be sold or converted into cash, typically within a year.

Credit Rating

Evaluating the likelihood that a borrower can repay their debt, either in general or in relation to a specific financial commitment.