Attestation engagement refers to the type of assignation resulting in the issuance of a financial report on an activity that is the obligation of another party. Attestation engagements are suitable in situations that do not require auditing procedures since they involve the examination, review, and application of the agreed-upon procedures, which is an obligation of a different party. The attester provides a report that shows whether an assertion is prepared in conformity with the proper guidelines. Attestation may be employed in a number of situations, including the break-even analysis, prospective or historical performance, internal control processes and the physical characteristics of facilities. Examples of the engagements include, report on financial forecasts, report of pro forma financial information, agreed-upon procedures engagements, management’s analysis and discussion and compliance attestation.
Attestation engagement is used to determine whether the appropriate standards and procedures are adhered to during the performance and reporting of the agreed upon engagements. During this operation, a professional practitioner is involved in evaluating the subject matter in relation to the needs of specific parties (American Institute of Certified Public Accountants. Accounting and Review Services Committee, 2010). The practitioners carry out research and presents a report based on the specific procedures performed on the subject matter and the findings.
Under compliance attestation, professionals evaluate the entity’s compliance with the requirements of specific laws, rules and regulations. This type of attestation is important to a firm as it ensures that the operations adhere to the standards and guidelines provided by the government and the company. The practices also evaluate the effectiveness of the internal….