Wiley Practitioner's Guide to GAAS 2018, 2nd Edition

AT-C 205 Examination Engagements

Overview

Section 205 is the first of the level of service sections. These sections are:

• 205, Examination Engagements,
• 210, Review Engagements, and
• 215, Agreed-Upon Procedures Engagements

On every attestation engagement, the CPA must comply with Section 105, one of the level of service sections above, and any relevant subject matter section in the AT-C 300 section. Section 205 applies to all examination engagements and supplements the guidance in Section 105. See the chapter on the AT-C Preface for more information about the AT-C section structure.

Objectives

The practitioner's objectives in performing an examination engagement are to:

1. obtain reasonable assurance about whether the subject matter as measured or evaluated against the criteria is free from material misstatement
2. express an opinion in a written report about whether
   1. the subject is in accordance with (or based on) the criteria, in all material respects, or
   2. the responsible parties, assertion is fairly stated in all material aspects, and
3. Communicate further as required by relevant AT-C sections.

(AT-C 205.03)

Definitions of Terms

See the glossary in the Appendix to the chapter on the AT-C Preface for definitions of the following terms relevant to Section 205: appropriateness of evidence, modified opinion, risk of material misstatement, sufficiency of evidence, and test of controls.

Requirements

Independence

Section 205 requires CPAs to be independent when performing attestation ...