Exam 17: Other Services Provided by Audit Firms

Special Reports. AU-C Section 805 provides guidance on audits of single financial statements and specific elements, accounts, or items of a financial statement. What are some examples of these types of situations?

An other-matter paragraph restricting the use of the auditor's report is a reporting requirement for a cash basis special purpose financial statement.

For which of the following special purpose financial statements is an other-matter paragraph restricting the use of the auditor's report required?

An auditor does not express an opinion on the fairness of the financial statements when issuing a standard compilation report.

Review reports. For a review report, identify: A.for whom what type of the organization the report may be performed; B.the procedures the auditor performs; C.the type of assurance provided; D.the requirement for auditor independence.

Other comprehensive bases of accounting do not include which of the following?

Pro forma financial information shows what the significant effects might have been had a consummated or proposed transaction or event occurred at an earlier date.

Which one of the following procedures is not a standard procedure when performing a review?

A review report issued by a public accounting firm on a public client's interim financial statements includes reference to adherence to the standards of the Public Company Accounting Oversight Board.

Craig Marks, CPA performs an audit of Treasure, Inc., which keeps its financial statements on the tax basis of accounting. Craig is aware of this fact and audits the financial statements on the criteria of the tax basis. What type of engagement is this?

A company issuing prospective financial statements can receive a compilation on the statements but not an examination.

Negative assurance infers that nothing has come to the reviewer's attention that requires change.

Which of the following statements best describes the primary difference between an audit and forensic accounting?

Forensic accountants need to have excellent interviewing and people skills.

What are the performance standards required for interim review engagements on the quarterly financial information of public companies?

Compilation Reporting. For a compilation report, identify: A.for what type of organization the report may be performed; B.the procedures the auditor performs; C.the type of assurance provided; D.the requirements for auditor independence.

Some companies choose to provide no objective assurance regarding their sustainability reports.

Special reports would include compliance with contractual agreements.

Compilation Reporting. A banker friend and you were discussing compiled financial statements. He said," When CPAs associate their name with compiled financial statements, their only responsibility is to the client and that is limited to the proper summarization and presentation on the financial statement information provided by the client. The opinion clearly states that the auditor has not conducted an audit and does not express an opinion on this fair presentation. Therefore, if users rely on compiled financial statements, they do so at their own peril and can never hold the CPA responsible for inadequate performance. Users should interpret the financial statements as if they had been prepared by management.". REQUIRED: How would you respond to your friend?

An example of the subject matter of a non-audit attestation engagement is management's assertions about historical financial information and associated disclosures.