What Is an Attestation Engagement?
An attestation engagement is a type of professional service where an independent practitioner (typically an auditor or CPA) evaluates and provides a report on assertions made by another party about a specific subject matter. These engagements follow standards set by organizations like the AICPA or GAO.
Who Makes the Assertion?
Management's Role:Management is the party responsible for making an assertion about the subject matter under review. For example, management might assert that internal controls are effective or that financial statements are fairly presented.
Auditor/Practitioner’s Role:The auditor or practitioner examines the evidence related to the assertion and provides an opinion or conclusion based on that examination.
User’s Role:The users are the stakeholders (e.g., investors, regulators) who rely on the practitioner’s report, but they do not make assertions.
Why Other Options Are Incorrect:
B. Auditor/Practitioner:The auditor or practitioner evaluates the assertion made by management, not the other way around.
C. Practitioner:See above—practitioners don’t make assertions.
D. User:Users are the intended audience of the attestation report, not the party making assertions.
References and Documents:
AICPA Attestation Standards (SSAEs):Clarifies the role of management in making assertions during attestation engagements.
GAO’s Government Auditing Standards (Yellow Book):Provides additional guidance on the roles of parties in attestation engagements.
