Question 1

A review results in a conclusion that represents ________ assurance.

Accepted Answer

A) limited assurance 
B) negative 
C) positive 
D) unequivocal 
A) limited assurance 
B) negative 
C) positive 
D) unequivocal

Question 2

Define forecast and projection.

Accepted Answer

Forecasts are prospective financial stat

Question 3

One of the bases other than GAAP or IFRS is the Financial reporting framework for small- and medium-sized businesses.This basis

Accepted Answer

A) has not yet been approved by the AICPA. 
B) is the same as the income tax basis. 
C) draws upon a blend of traditional accounting principles and accrual income tax methods of accounting. 
D) must be used by a business with sales under $1 million. 
A) has not yet been approved by the AICPA. 
B) is the same as the income tax basis. 
C) draws upon a blend of traditional accounting principles and accrual income tax methods of accounting. 
D) must be used by a business with sales under $1 million.

Question 4

For compilations,an accountant does which of the following?

Accepted Answer

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

Question 5

In a preparation service,if the financial statements are expected to be used by a third party,the accountant must provide at least minimal assurance on the financial statements.

Accepted Answer

A) True 
 B)False

Question 6

A CPA who has been engaged to audit financial statements that were prepared on a cash basis

Accepted Answer

A) must ascertain that there is proper disclosure of the fact that the cash basis has been used. 
B) may not be associated with such statements which are not in accordance with generally accepted accounting principles. 
C) must render a qualified report explaining the departure from generally accepted accounting principles in the opinion paragraph. 
D) must restate the financial statements on an accrual basis and then render the standard (short-form)report. 
A) must ascertain that there is proper disclosure of the fact that the cash basis has been used. 
B) may not be associated with such statements which are not in accordance with generally accepted accounting principles. 
C) must render a qualified report explaining the departure from generally accepted accounting principles in the opinion paragraph. 
D) must restate the financial statements on an accrual basis and then render the standard (short-form)report.

Question 7

Which of the following is a correct statement regarding review,compilation,and preparation services?

Accepted Answer

A) A written engagement letter is not needed for a review,compilation or preparation service. 
B) The Statements on Standards for Accounting and Review Services (SSARS)clarity project used international standards as the base standard when revising the SSARS. 
C) CPAs must be independent of the client in a review service engagement and for an audit engagement. 
D) The amount of evidence accumulated in a review is minimal. 
A) A written engagement letter is not needed for a review,compilation or preparation service. 
B) The Statements on Standards for Accounting and Review Services (SSARS)clarity project used international standards as the base standard when revising the SSARS. 
C) CPAs must be independent of the client in a review service engagement and for an audit engagement. 
D) The amount of evidence accumulated in a review is minimal.

Question 8

Reports on agreed-upon procedures are intended to be distributed

Accepted Answer

A) to only the involved parties,who would have the requisite knowledge about those procedures and the level of assurance resulting from them. 
B) to only the involved parties,who would have the requisite knowledge about those procedures but not the level of assurance resulting from them. 
C) to any party to whom the client wishes. 
D) only to the stockholders of the client. 
A) to only the involved parties,who would have the requisite knowledge about those procedures and the level of assurance resulting from them. 
B) to only the involved parties,who would have the requisite knowledge about those procedures but not the level of assurance resulting from them. 
C) to any party to whom the client wishes. 
D) only to the stockholders of the client.

Question 9

Clients occasionally enter into loan agreements that require them to provide the ________ with a report from a CPA about the existence or nonexistence of some condition.

Accepted Answer

A) underwriters of securities 
B) audit committee 
C) lender 
D) Securities and Exchange Commission 
A) underwriters of securities 
B) audit committee 
C) lender 
D) Securities and Exchange Commission

Question 10

General use statements are prepared for use by

Accepted Answer

A) known contractual parties. 
B) any third party. 
C) regulators. 
D) internal auditors. 
A) known contractual parties. 
B) any third party. 
C) regulators. 
D) internal auditors.

Question 11

A primary concern in reporting on a comprehensive basis is to make sure that the statements clearly indicate that they are prepared on a basis other than GAAP.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements regarding prospective financial statements is most correct?

Accepted Answer

A) CPAs are not attesting to the accuracy of the prospective financial statements. 
B) CPAs are attesting to the accuracy of the prospective financial statements. 
C) CPAs are performing a review on the company's assumptions and hypotheticals that underlie the prospective financial statements. 
D) CPAs are performing a review on the achievability of the prospective financial statements. 
A) CPAs are not attesting to the accuracy of the prospective financial statements. 
B) CPAs are attesting to the accuracy of the prospective financial statements. 
C) CPAs are performing a review on the company's assumptions and hypotheticals that underlie the prospective financial statements. 
D) CPAs are performing a review on the achievability of the prospective financial statements.

Question 13

Distribution of which of the following types of reports is limited?

Accepted Answer

A) audit 
B) review 
C) agreed-upon procedures 
D) examination 
A) audit 
B) review 
C) agreed-upon procedures 
D) examination

Question 14

In an examination engagement for prospective financial statements,the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions.

Accepted Answer

A) True 
 B)False

Question 15

You are preparing to issue a report on the compilation of financial statements for a nonpublic company.Prior to issuing the report you should

Accepted Answer

A) read the financial statements to determine if they are free from obvious material errors. 
B) perform analytical procedures to determine if they are free from material misstatements. 
C) perform tests of balances on selected accounts to determine if they are free from material misstatements. 
D) perform limited control tests to determine if there are any material misstatements. 
A) read the financial statements to determine if they are free from obvious material errors. 
B) perform analytical procedures to determine if they are free from material misstatements. 
C) perform tests of balances on selected accounts to determine if they are free from material misstatements. 
D) perform limited control tests to determine if there are any material misstatements.

Question 16

The examination of prospective financial statements contains four elements that comprise the examination.List the four elements below.

Accepted Answer

1. Evaluate the preparation of the prosp

Question 17

An interim review of the financial information for public companies is performed following standards of the

Accepted Answer

A) American Institute of Certified Public Accountants (AICP
A) . 
B) Public Company Accounting Oversight Board (PCAO
B) . 
C) Securities and Exchange Commission (SE
C) . 
D) Statements on Standards for Accounting and Review Services (SSARS). 
A) American Institute of Certified Public Accountants (AICP
A) . 
B) Public Company Accounting Oversight Board (PCAO
B) . 
C) Securities and Exchange Commission (SE
C) . 
D) Statements on Standards for Accounting and Review Services (SSARS).

Question 18

The last paragraph of the accountant's review report

Accepted Answer

A) details the responsibilities of management. 
B) details the responsibilities of the accountant. 
C) expresses limited assurance in the form of negative assurance. 
D) lists the analytical procedures performed. 
A) details the responsibilities of management. 
B) details the responsibilities of the accountant. 
C) expresses limited assurance in the form of negative assurance. 
D) lists the analytical procedures performed.

Question 19

Professional standards prohibit which one of the following types of engagements for prospective financial statements from being undertaken?

Accepted Answer

A) a compilation 
B) a review 
C) an examination 
D) an agreed-upon procedures engagement 
A) a compilation 
B) a review 
C) an examination 
D) an agreed-upon procedures engagement

Question 20

There are five Trust Service principles,including security and viability.

Accepted Answer

A) True 
 B)False

Exam 25: Other Assurance Services

A review results in a conclusion that represents ________ assurance.

Define forecast and projection.

One of the bases other than GAAP or IFRS is the Financial reporting framework for small- and medium-sized businesses.This basis

For compilations,an accountant does which of the following?

In a preparation service,if the financial statements are expected to be used by a third party,the accountant must provide at least minimal assurance on the financial statements.

A CPA who has been engaged to audit financial statements that were prepared on a cash basis

Which of the following is a correct statement regarding review,compilation,and preparation services?

Reports on agreed-upon procedures are intended to be distributed

Clients occasionally enter into loan agreements that require them to provide the ________ with a report from a CPA about the existence or nonexistence of some condition.

General use statements are prepared for use by

A primary concern in reporting on a comprehensive basis is to make sure that the statements clearly indicate that they are prepared on a basis other than GAAP.

Which of the following statements regarding prospective financial statements is most correct?

Distribution of which of the following types of reports is limited?

In an examination engagement for prospective financial statements,the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions.

You are preparing to issue a report on the compilation of financial statements for a nonpublic company.Prior to issuing the report you should

The examination of prospective financial statements contains four elements that comprise the examination.List the four elements below.

An interim review of the financial information for public companies is performed following standards of the

The last paragraph of the accountant's review report

Professional standards prohibit which one of the following types of engagements for prospective financial statements from being undertaken?

There are five Trust Service principles,including security and viability.

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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