What is the difference between an examination and an audit?
An examination is similar to an audit, but the main difference is that an audit focuses on historical financial information while an examination focuses on non-historical financial information. In addition, an audit is subject to PCAOB audit standards (public companies) or Statement on Auditing Standards (private companies).
An examination is subject to Standards of Standards for Attestation Engagements (SSAE). For both an examination and audit, independence is required, and the CPA would express positive assurance (meaning the financial information is free from material misstatement).
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