ThunderFan0
offlineMember
So my text books are confusing me with this verbage. Is an Examination the same as an Audit?
Meaning when it says an examination is being performed, it would have the same requirements as an audit being performed?
porschify
onlineMember
Im not sure of the verbiage of the text book, but typically "examinations, or reviews" are different then "audits." The reasoning is that in an audit, an opinion is expressed and that testing has been done to provide reasonable assurance in order to support that opinion. To my knowledge, examinations or reviews have a lower level of detail (using standards of review services) than audits.
MAXX
offlineMember
Examination is just auditing other than Financial Statement for eg compliance with laws, etc so in examination procedures are different depends on client require services like some client need to examine their internal control , some need to examine Prospective Financial statement etc.
so word examination differentiate between auditing financial statement and other Client Require service
mla1169
offlineMember
first off, I wouldn't make any assumptions based on the number of views of this post. And if I did make assumptions I certainly wouldn't write them down.....but thats just me.
An audit is a type of examination but not all examinations are audits.
mla1169
offlineMember
well a review is also historical info, and is also an examination but is not an audit.
Basically a CPA can do many types of services from preparing financial statements (not an exam), to posting journal entries (also not an examination) but when they are looking at somethig that someone else has prepared it is an examination.
Morganf
offlineMember
The answer seems both yes & no;
Yes - Both give an opinion & positive assurance.
No - Examinations are done on Prospective FS & Pro Forma FS, Audits are done on historical FS, compliance audits, operational audits, service audits. Audits use Statements on Auditing Standards (AU) and the examinations use SSAE (AE).
People may say they are completely different jobs but functionally they look identical to me. Just remember to cite the right reporting standards & use the right word for the job.
Note: I'm not 100% on this answer, it's just my understanding.
Tebowwwww
offlineMember
An Audit is well, an audit of historical financial statements, which is one type of attest engagement. An examination is a type of attest engagement on something other than historical financial statements. It could be a financial forecast, financial projection, agreed-upon-procedures, pro-forma financials, MD&A, and maybe a few others I'm forgetting.
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