Question 1

Reporting on a specified account is a form of special report that an auditor may issue in relation to a specific basis of accounting.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following descriptions best explains triple bottom line reporting?

Accepted Answer

A)  It is reporting on assets, liabilities, and stockholders' equity. 
B)  It is reporting on financial, environmental and social performance. 
C)  It is reporting on auditing, accounting, and ethics. 
D)  It is reporting with respect to laws, norms, and performance standards. 
A)  It is reporting on assets, liabilities, and stockholders' equity. 
B)  It is reporting on financial, environmental and social performance. 
C)  It is reporting on auditing, accounting, and ethics. 
D)  It is reporting with respect to laws, norms, and performance standards. B

Question 3

A compilation performed in accordance with AICPA standards may be performed by CPAs or accountants who are not certified or licensed.

Accepted Answer

A) True 
 B)False  False

Question 4

Which one of the following reports is not a special report issued as a result of an examination?

Accepted Answer

A)  Report on a specified financial statement element. 
B)  Report on compliance with contractual agreements. 
C)  Agreed upon procedures. 
D)  Report on information presented in prescribed forms. 
A)  Report on a specified financial statement element. 
B)  Report on compliance with contractual agreements. 
C)  Agreed upon procedures. 
D)  Report on information presented in prescribed forms.

Question 5

For which of the following special purpose financial statements is an emphasis-of-matter paragraph alerting readers about the preparation in accordance with the special purpose framework not required?

Accepted Answer

A)  Cash basis. 
B)  Tax basis. 
C)  Regulatory basis for general use. 
D)  Contractual basis. 
A)  Cash basis. 
B)  Tax basis. 
C)  Regulatory basis for general use. 
D)  Contractual basis.

Question 6

The auditor should perform review procedures (a) on the quarterly information contained in the annual report to shareholders and (b) when engaged to review the quarterly information issued at the end of each of the first three quarters of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 7

In agreed-upon procedure engagements, the practitioner does not perform a review, and does not provide an opinion or negative assurance.

Accepted Answer

A) True 
 B)False

Question 8

Forensic accounting.
Contrast the financial statement auditor's consideration of fraud to that of a forensic accountant.

Accepted Answer

A financial statement auditor is focused

Question 9

When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?

Accepted Answer

A)  The CPA cannot accept the engagement. 
B)  The CPA may accept the engagement. 
C)  The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users. 
D)  The CPA must express an adverse opinion. 
A)  The CPA cannot accept the engagement. 
B)  The CPA may accept the engagement. 
C)  The CPA may accept the engagement if the CPA believes the omission is not undertaken to mislead users. 
D)  The CPA must express an adverse opinion.

Question 10

Which of the following is not an AICPA general standard for attestation engagements?

Accepted Answer

A)  The practitioner must have adequate technical training and proficiency to perform the attestation engagement. 
B)  The practitioner must have reason to believe that the subject matter is capable of evaluation against criteria that are suitable and available to users. 
C)  The practitioner must adequately plan the work and must properly supervise any assistants. 
D)  The practitioner must exercise due professional care in the planning and performance of the engagement and the preparation of the report. 
A)  The practitioner must have adequate technical training and proficiency to perform the attestation engagement. 
B)  The practitioner must have reason to believe that the subject matter is capable of evaluation against criteria that are suitable and available to users. 
C)  The practitioner must adequately plan the work and must properly supervise any assistants. 
D)  The practitioner must exercise due professional care in the planning and performance of the engagement and the preparation of the report.

Question 11

Which of the following procedures is an inappropriate agreed-upon procedure?

Accepted Answer

A)  Comparison of documents, schedules, or analyses. 
B)  Performance of mathematical computations. 
C)  Confirmation of specific information with third parties. 
D)  Evaluation of the competency or objectivity of another party. 
A)  Comparison of documents, schedules, or analyses. 
B)  Performance of mathematical computations. 
C)  Confirmation of specific information with third parties. 
D)  Evaluation of the competency or objectivity of another party.

Question 12

Which of the following situations is not one where the practitioner will modify the standard compilation report?

Accepted Answer

A)  There is an omission of disclosures for the compilation. 
B)  A compilation report is not required 
C)  The practitioner lacks independence. 
D)  An understanding of internal controls cannot be obtained. 
A)  There is an omission of disclosures for the compilation. 
B)  A compilation report is not required 
C)  The practitioner lacks independence. 
D)  An understanding of internal controls cannot be obtained.

Question 13

A special purpose framework can use a cash basis financial reporting framework.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not subject matter that would be attested to in a non-audit attestation engagement?

Accepted Answer

A)  Historical events such as the price of a market basket of goods on a certain date. 
B)  Corporate governance, compliance with law and regulations, or human resource practices. 
C)  Management's assertions about historical financial information and associated disclosures. 
D)  Prospective financial information, performance measurements, or backlog data. 
A)  Historical events such as the price of a market basket of goods on a certain date. 
B)  Corporate governance, compliance with law and regulations, or human resource practices. 
C)  Management's assertions about historical financial information and associated disclosures. 
D)  Prospective financial information, performance measurements, or backlog data.

Question 15

Review of Interim Financial Information.
What are some common procedures that the auditor will complete when performing a review of interim financial information?

Accepted Answer

Interim financial information is reporte

Question 16

Which one of the following statements is false regarding a review?

Accepted Answer

A)  A review involves assessing fraud risk. 
B)  A review does not involve obtaining an understanding of the entity's internal control. 
C)  A review does not involve testing accounting records by obtaining sufficient appropriate evidence through inspection, observation, confirmation, or examining source documents. 
D)  A review does not involve a practitioner obtaining assurance that he or she will become aware of all significant matters that would be investigated in an audit. 
A)  A review involves assessing fraud risk. 
B)  A review does not involve obtaining an understanding of the entity's internal control. 
C)  A review does not involve testing accounting records by obtaining sufficient appropriate evidence through inspection, observation, confirmation, or examining source documents. 
D)  A review does not involve a practitioner obtaining assurance that he or she will become aware of all significant matters that would be investigated in an audit.

Question 17

For which of the following special purpose financial statements is a description of purpose for which special purpose financial statements are prepared not required?

Accepted Answer

A)  Cash basis. 
B)  Regulatory basis for use by management and the regulator only. 
C)  Regulatory basis for general use. 
D)  Contractual basis. 
A)  Cash basis. 
B)  Regulatory basis for use by management and the regulator only. 
C)  Regulatory basis for general use. 
D)  Contractual basis.

Question 18

The SEC requires public filers to have quarterly financial information reviewed by independent auditors.

Accepted Answer

A) True 
 B)False

Question 19

When forming an opinion on special purpose financial statements, the auditor should evaluate whether the financial statements include a summary of significant accounting policies.

Accepted Answer

A) True 
 B)False

Question 20

One aspect of forensic accounting focuses on identifying the person who has perpetrated the fraud and having that person confess to the fraud.

Accepted Answer

A) True 
 B)False

Reporting on a specified account is a form of special report that an auditor may issue in relation to a specific basis of accounting.

Which of the following descriptions best explains triple bottom line reporting?

A compilation performed in accordance with AICPA standards may be performed by CPAs or accountants who are not certified or licensed.

Which one of the following reports is not a special report issued as a result of an examination?

For which of the following special purpose financial statements is an emphasis-of-matter paragraph alerting readers about the preparation in accordance with the special purpose framework not required?

The auditor should perform review procedures (a) on the quarterly information contained in the annual report to shareholders and (b) when engaged to review the quarterly information issued at the end of each of the first three quarters of the fiscal year.

In agreed-upon procedure engagements, the practitioner does not perform a review, and does not provide an opinion or negative assurance.

Forensic accounting. Contrast the financial statement auditor's consideration of fraud to that of a forensic accountant.

When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?

Which of the following is not an AICPA general standard for attestation engagements?

Which of the following procedures is an inappropriate agreed-upon procedure?

Which of the following situations is not one where the practitioner will modify the standard compilation report?

A special purpose framework can use a cash basis financial reporting framework.

Which of the following is not subject matter that would be attested to in a non-audit attestation engagement?

Review of Interim Financial Information. What are some common procedures that the auditor will complete when performing a review of interim financial information?

Which one of the following statements is false regarding a review?

For which of the following special purpose financial statements is a description of purpose for which special purpose financial statements are prepared not required?

The SEC requires public filers to have quarterly financial information reviewed by independent auditors.

When forming an opinion on special purpose financial statements, the auditor should evaluate whether the financial statements include a summary of significant accounting policies.

One aspect of forensic accounting focuses on identifying the person who has perpetrated the fraud and having that person confess to the fraud.

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Filters

Exam 17: Other Services Provided by Audit Firms

Reporting on a specified account is a form of special report that an auditor may issue in relation to a specific basis of accounting.

Which of the following descriptions best explains triple bottom line reporting?

A compilation performed in accordance with AICPA standards may be performed by CPAs or accountants who are not certified or licensed.

Which one of the following reports is not a special report issued as a result of an examination?

For which of the following special purpose financial statements is an emphasis-of-matter paragraph alerting readers about the preparation in accordance with the special purpose framework not required?

The auditor should perform review procedures (a) on the quarterly information contained in the annual report to shareholders and (b) when engaged to review the quarterly information issued at the end of each of the first three quarters of the fiscal year.

In agreed-upon procedure engagements, the practitioner does not perform a review, and does not provide an opinion or negative assurance.

Forensic accounting. Contrast the financial statement auditor's consideration of fraud to that of a forensic accountant.

When an accountant is asked to compile financial statements that omit substantially all of the required disclosures, which of the following actions is appropriate?

Which of the following is not an AICPA general standard for attestation engagements?

Which of the following procedures is an inappropriate agreed-upon procedure?

Which of the following situations is not one where the practitioner will modify the standard compilation report?

A special purpose framework can use a cash basis financial reporting framework.

Which of the following is not subject matter that would be attested to in a non-audit attestation engagement?

Review of Interim Financial Information. What are some common procedures that the auditor will complete when performing a review of interim financial information?

Which one of the following statements is false regarding a review?

For which of the following special purpose financial statements is a description of purpose for which special purpose financial statements are prepared not required?

The SEC requires public filers to have quarterly financial information reviewed by independent auditors.

When forming an opinion on special purpose financial statements, the auditor should evaluate whether the financial statements include a summary of significant accounting policies.

One aspect of forensic accounting focuses on identifying the person who has perpetrated the fraud and having that person confess to the fraud.

Auditing: Integral to the Economy

The Auditors Responsibilities Regarding Fraud and Mechanisms to Address Fraud: Regulation and Corporate Governance

Internal Control Over Financial Reporting: Responsibilities of Management and the External Auditors

Professional Liability, Auditor Judgment Frameworks, and Professional Responsibilities

Professional Auditing Standards and the Audit Opinion Formulation Process

A Framework for Audit Evidence

Planning the Audit: Identifying and Responding to the Risks of Material Misstatement

Specialized Audit Tools: Sampling and Generalized Audit Software

Auditing the Revenue Cycle

Auditing Cash and Marketable Securities

Auditing Inventory, Goods and Services, and Accounts Payable: the Acquisition and Payment Cycle

Auditing Long-Lived Assets: Acquisition, Use, Impairment, and Disposal

Auditing Debt Obligations and Stockholders Equity Transactions

Activities Required in Completing a Quality Audit

Audit Reports on Financial Statements

Advanced Topics Concerning Complex Auditing Judgments

Filters