Question

An attestation engagement is one in which a CPA is engaged to:Multiple Choice

A.provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed.
B.testify as an expert witness in accounting, auditing or tax matters, given certain stipulated facts.
C.issue, or does issue, a report on subject matter or an assertion about the subject matter that is the responsibility of another party.
D.assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance.

Answer 1

An attestation engagement involves a CPA issuing a report on a subject matter that is the responsibility of another party, which distinguishes it from other activities such as tax advice or legal testimony.

Step-by-step explanation:

An attestation engagement is where a Certified Public Accountant (CPA) is hired to issue a report on subject matter or an assertion about the subject matter that is the responsibility of another party. This differs from other engagements like providing tax advice, testifying as an expert, or assembling prospective financial statements without providing assurance. So, the correct answer to the student's multiple-choice question is: C. issue, or does issue, a report on subject matter or an assertion about the subject matter that is the responsibility of another party.