Question 1

In a preparation service engagement,

Accepted Answer

A) the CPA's responsibilities are similar to those performed during a review. 
B) the CPA does not provide any assurance of the financial statements. 
C) the CPA must issue a preparation service engagement report. 
D) the CPA must be independent. 
A) the CPA's responsibilities are similar to those performed during a review. 
B) the CPA does not provide any assurance of the financial statements. 
C) the CPA must issue a preparation service engagement report. 
D) the CPA must be independent. B

Question 2

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements with disclosures in accordance with accounting principles generally accepted in the United States of America.

Accepted Answer

Management is responsible for the accompanying financial statements of XYZ Company,which comprise the balance sheet as of December 31,201X,and the related statements of income,changes in stockholders' equity and cash flows for the year then ended,and the related notes to the financial statements in accordance with accounting principles generally accepted in the United States of America.We have performed the compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management.Accordingly,we do not express an opinion,a conclusion,nor provide any form of assurance on these financial statements.

Question 3

The auditor must obtain evidence that the interim financial information agrees or reconciles with the accounting records for a public company interim review.

Accepted Answer

A) True 
 B)False  True

Question 4

The standards for preparation,compilation,and review engagements of financial statements are the

Accepted Answer

A) AICPA's Code of Professional Conduct. 
B) Statements on Auditing Standards (SASs). 
C) Statements of Standards on Attestation Engagements (SSAEs). 
D) Statements on Standards for Accounting and Review Services (SSARS). 
A) AICPA's Code of Professional Conduct. 
B) Statements on Auditing Standards (SASs). 
C) Statements of Standards on Attestation Engagements (SSAEs). 
D) Statements on Standards for Accounting and Review Services (SSARS).

Question 5

The Securities and Exchange Commission requires quarterly financial information as a part of the

Accepted Answer

A) 10-K report. 
B) 10-Q report. 
C) 8-K report. 
D) auditor's report. 
A) 10-K report. 
B) 10-Q report. 
C) 8-K report. 
D) auditor's report.

Question 6

As a CPA you have been asked to examine an entity's financial projections.Acceptance of the engagement would be appropriate if distribution is limited to

Accepted Answer

A) stockholders of record as of the date of the report. 
B) potential investors and creditors by posting on the company's website. 
C) general public by posting on the company's website. 
D) a financial institution for which the company is negotiating a loan. 
A) stockholders of record as of the date of the report. 
B) potential investors and creditors by posting on the company's website. 
C) general public by posting on the company's website. 
D) a financial institution for which the company is negotiating a loan.

Question 7

Which of the following is an attestation standard under the standards of reporting?

Accepted Answer

A) The practitioner must have adequate technical training. 
B) The practitioner must adequately plan the work. 
C) The practitioner must evaluate internal controls. 
D) The practitioner must identify the subject matter or assertion being reported on. 
A) The practitioner must have adequate technical training. 
B) The practitioner must adequately plan the work. 
C) The practitioner must evaluate internal controls. 
D) The practitioner must identify the subject matter or assertion being reported on.

Question 8

When performing compilation services,the accountant is not required to obtain an understanding of the client's internal control.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not an accurate statement regarding agreed-upon procedures engagements?

Accepted Answer

A) These engagements are also known as procedures and findings engagements. 
B) A report for such an engagement describes the findings resulting from the procedures,but cannot describe the procedures agreed upon. 
C) All agreed-upon procedure engagements are now under the scope of attestation standards. 
D) Agreed-upon procedures engagements appeal to CPAs because management,or a third-party user,specifies the procedures they want done. 
A) These engagements are also known as procedures and findings engagements. 
B) A report for such an engagement describes the findings resulting from the procedures,but cannot describe the procedures agreed upon. 
C) All agreed-upon procedure engagements are now under the scope of attestation standards. 
D) Agreed-upon procedures engagements appeal to CPAs because management,or a third-party user,specifies the procedures they want done.

Question 10

What type of SOC report is intended to meet the needs of a broad range of users who need information and assurance about controls at s service organization that affect the security,availability,and processing integrity of the systems the service organization uses to process users' data and the confidentiality and privacy of the information processed by these systems?

Accepted Answer

A) SOC 1 report 
B) SOC 2 report 
C) SOC 3 report 
D) none of the above 
A) SOC 1 report 
B) SOC 2 report 
C) SOC 3 report 
D) none of the above

Question 11

Which of the following services is performed under the attestation standards?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 12

A nonaudit engagement in which the accountant undertakes to present,in the form of financial statements,information that is the representation of management,without undertaking to express any assurance on the statements is called a review engagement.

Accepted Answer

A) True 
 B)False

Question 13

CPAs must be independent to issue a compilation report.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a generally accepted attestation standard for fieldwork?

Accepted Answer

A) The practitioner must state in the report that the report is intended solely for the information and use of specified parties. 
B) The practitioner must state all of their significant reservations about the engagement. 
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 state in the report that the report is intended solely for the information and use of specified parties. 
B) The practitioner must state all of their significant reservations about the engagement. 
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 15

Which of the following statements is True regarding review and audit services?

Accepted Answer

A) A review requires more substantive evidence than an audit. 
B) An audit requires less evidence related to internal control than a review. 
C) A review requires less evidence than an audit. 
D) None of the above statements is True. 
A) A review requires more substantive evidence than an audit. 
B) An audit requires less evidence related to internal control than a review. 
C) A review requires less evidence than an audit. 
D) None of the above statements is True.

Question 16

When performing an attestation engagement,a CPA is required to adhere to the Statements on Standards for Attestation Engagements.Describe below the Standards of Field Work for attestation engagements.

Accepted Answer

1. The practitioner must adequately plan

Question 17

The guidance for service auditors has been moved to the attestation standards.

Accepted Answer

A) True 
 B)False

Question 18

Statements on Standards for Attestation Engagements (SSAEs )are issued by the Auditing Standards Board of the AICPA.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following attestation engagements result in a conclusion that represents positive assurance?

Accepted Answer

A) review 
B) compilation 
C) examination 
D) agreed upon procedure engagement 
A) review 
B) compilation 
C) examination 
D) agreed upon procedure engagement

Question 20

In a review service where the client has failed to follow applicable accounting standards,the accountant is

Accepted Answer

A) not required to determine the effect of a departure if management has not done so,but that fact must be disclosed in the report. 
B) required to determine the effect of a departure if management has not done so,and that fact must be disclosed in the report. 
C) not required to determine the effect of a departure if management has not done so,and that fact need not be disclosed in the report. 
D) required to determine the effect of a departure if management has not done so,and that fact need not be disclosed in the report. 
A) not required to determine the effect of a departure if management has not done so,but that fact must be disclosed in the report. 
B) required to determine the effect of a departure if management has not done so,and that fact must be disclosed in the report. 
C) not required to determine the effect of a departure if management has not done so,and that fact need not be disclosed in the report. 
D) required to determine the effect of a departure if management has not done so,and that fact need not be disclosed in the report.

Exam 25: Other Assurance Services

In a preparation service engagement,

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements with disclosures in accordance with accounting principles generally accepted in the United States of America.

The auditor must obtain evidence that the interim financial information agrees or reconciles with the accounting records for a public company interim review.

The standards for preparation,compilation,and review engagements of financial statements are the

The Securities and Exchange Commission requires quarterly financial information as a part of the

As a CPA you have been asked to examine an entity's financial projections.Acceptance of the engagement would be appropriate if distribution is limited to

Which of the following is an attestation standard under the standards of reporting?

When performing compilation services,the accountant is not required to obtain an understanding of the client's internal control.

Which of the following is not an accurate statement regarding agreed-upon procedures engagements?

Which of the following services is performed under the attestation standards?

A nonaudit engagement in which the accountant undertakes to present,in the form of financial statements,information that is the representation of management,without undertaking to express any assurance on the statements is called a review engagement.

CPAs must be independent to issue a compilation report.

Which of the following is a generally accepted attestation standard for fieldwork?

Which of the following statements is True regarding review and audit services?

When performing an attestation engagement,a CPA is required to adhere to the Statements on Standards for Attestation Engagements.Describe below the Standards of Field Work for attestation engagements.

The guidance for service auditors has been moved to the attestation standards.

Statements on Standards for Attestation Engagements (SSAEs )are issued by the Auditing Standards Board of the AICPA.

Which of the following attestation engagements result in a conclusion that represents positive assurance?

In a review service where the client has failed to follow applicable accounting standards,the accountant is

The Demand for Audit and Other Assurance Services

The Cpa Profession

Audit Reports

Professional Ethics

Legal Liability

Audit Responsibilities and Objectives

Audit Evidence

Audit Planning and Analytical Procedures

Materiality and Risk

Fraud Auditing

Internal Control and Coso Framework

Assessing Control Risk and Reporting on Internal Controls

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls

Audit Sampling for Tests of Controls and Substantive Tests of Transactions

Completing the Tests in the Sales and Collection Cycle: Accounts Receivable

Audit Sampling for Tests of Details of Balances

Audit of the Acquisition and Payment Cycle: Tests of Controls,

Completing the Tests in the Acquisition and Payment Cycle:

Audit of the Payroll and Personnel Cycle

Audit of the Inventory and Warehousing Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Completing the Audit

Internal and Governmental Financial Auditing and Operational Auditing

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