Thanks Amanda_88. I did very well on Final Exam 1, and was kind of shocked at how much weaker my performance was on Final Exam 2. MPC was poor, but luckily I had almost everything on the sims correct.
Which of the following best describes a difference between a compilation of prospective financial statements and an examination of prospective financial statements?
a. The compilation engagement is covered under SSARS while the examination engagement is covered under SSAE.
b. A compilation does not contemplate the auditor providing any form of assurance whereas an examination does include assurance.
c. In an examination engagement, the practitioner should update his or her report for known changes occurring after the date of the report, whereas there is no similar requirement for a compilation engagement.
d. An examination includes a statement of positive assurance whereas a compilation includes a statement of negative assurance.
The correct answer is B, which I agree with, but why is A wrong? The Becker solution says A is incorrect because “Reports on prospective financial statements are covered under SSAE. Compilations of the financial statements of a nonpublic entity are covered under SSARS”, isn't what A is saying, or am I reading it wrong?
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