#21

Tyffany and Phil are discussing the various types of engagements a CPA firm might take on one day over coffee. Which of the following statements by Phil is the most accurate with respect to the different services a CPA firm could undertake on behalf of clients? The most complex type of engagement is an attestation engagement. This type of engagement also offers the highest level of assurance. The most routine type of engagement for a CPA firm would be a compilation engagement. This type of engagement sees the auditors gathering the client's financial information and separately preparing financial statements. When a client's senior management needs assistance in preparing their financial statements, they will usually request an audit engagement. This type of engagement only offers limited assurance on the financial statements. The most complex type of engagement for a CPA firm would be a preparation engagement. This is highly lucrative for the audit firm, but also requires the audit firm to offer the highest level of assurance