In an attestation engagement, which statement is true regarding the primary beneficiaries of the engagement?

• A. The CPA firm is engaged and paid by the client; therefore, the firm has primary responsibility to be an advocate for the client.
• B. The CPA firm is engaged and paid by the client, but the primary beneficiaries of the audit are the statement users.
• C. Should a situation arise where no convincing authoritative standard available, and there is a choice of actions, which could impact client's financial statements either positively or negatively, the CPA is free to endorse the choice which is best in the client's interest.
• D. As long as CPA firms are competent, it is not required that they remain unbiased.

Answer: (B)

In an attest engagement, the purpose is to provide credible information to those who rely on it rather than to please or advocate for the client. The CPA firm may be engaged and paid by the client, but independence and objectivity are essential; the primary beneficiaries are the users of the financial statements, not the client. This is why choosing actions solely in the client’s best interest is not the firm’s role—professional judgment must be exercised without bias, and the report should reflect what the standards require, not what would benefit the client if that conflicts with objectivity. The firm must remain unbiased even if there are no authoritative standards for a particular situation, and financial statement users, not the client, are the main beneficiaries of the assurance provided.