Question

Three common types of attestation services are:

A) audits of historical financial statements, reviews of historical financial statements, and audits of internal control over financial reporting.
B) audits of historical financial information, verifications of historical financial information, and attestations regarding internal controls.
C) reviews of historical financial information, verifications of future financial information, and attestations regarding internal controls.
D) audits of historical financial information, reviews of controls related to investments, and verifications of historical financial information.

Answer 1

The correct attestation services are audits and reviews of historical financial statements, as well as audits of internal controls over financial reporting.

Step-by-step explanation:

The correct answer to the question regarding common types of attestation services is A) audits of historical financial statements, reviews of historical financial statements, and audits of internal control over financial reporting. An audit of historical financial statements is an objective examination and evaluation of the financial statements of an organization to ensure that the records are a fair and accurate representation of the transactions they claim to represent. A review of historical financial statements involves performing procedures to determine whether there are any material modifications that should be made to the financial statements so they will be in conformity with the applicable accounting framework. Lastly, an audit of internal control over financial reporting is a type of attestation service wherein the auditor evaluates and reports on the effectiveness of a company's internal controls over financial reporting.