What type of assurance does the CPA provide in a review engagement under SSAE standards?
When the CPA performs a “review” engagement under SSAE standards, limited assurance will be provided. Limited assurance is sometimes referred to as negative assurance. When limited assurance is provided, the CPA is basically saying that based on their work, they are “not aware” of any material misstatements.
This is different from positive assurance, because under positive assurance, the CPA would say they have reasonable assurance that the financials are free from material misstatement.
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What types of engagements are subject to Statements of Standard for Attestation Engagements (SSAEs)?
There are three types of engagements that will need to be presented in accordance with the Statement of Standards for Attestation engagements (reviews, examinations, and agreed-upon procedures). Key characteristics of each engagement are as follows: