Nature And Scope Of Engagements Practice Test

A nonissuer company’s lender requests an audit, but management only wants limited assurance and is willing to accept a report that does not express an opinion. The CPA will perform inquiry and analytical procedures and obtain management representations. Which type of engagement is most appropriate to meet management’s desired assurance level?

A nonissuer not-for-profit organization asks a CPA to provide assurance on whether it complied with donor-imposed restrictions over a grant program. The CPA will perform procedures to obtain reasonable assurance and express an opinion on management’s assertion regarding compliance. What is the correct engagement type given the client’s needs?