Question 1

Evidence for a review engagement consists primarily of:

Accepted Answer

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

Question 2

Attestation standards allow a CPA to perform all but which of the following services for a forecast or projection?

Accepted Answer

A) Compilation 
B) Review 
C) Examination 
D) Agreed-upon procedures 
A) Compilation 
B) Review 
C) Examination 
D) Agreed-upon procedures

Question 3

When performing a review (SSARS review)of financial statements, the accountant is required to obtain a letter of representation from management.

Accepted Answer

A) True 
 B)False

Question 4

Statements on Standards for Accounting and Review Services (SSARS)govern the CPA's association with unaudited financial statements of nonpublic companies.

Accepted Answer

A) True 
 B)False

Question 5

In a Type 2 engagement, the service auditor performs tests of the operating effectiveness of the controls, but does not have to perform any of the procedures performed in a Type 1 engagement.

Accepted Answer

A) True 
 B)False

Question 6

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 7

The distribution of which of the following types of reports is unrestricted?

Accepted Answer

A) Examinations and reviews 
B) Reviews and agreed-upon procedures 
C) Examinations and agreed-upon procedures 
D) Examinations, reviews, and agreed-upon procedures 
A) Examinations and reviews 
B) Reviews and agreed-upon procedures 
C) Examinations and agreed-upon procedures 
D) Examinations, reviews, and agreed-upon procedures

Question 8

The accountant's report on the examination of prospective financial statements should include a caveat that the prospective results may not be achieved.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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 11

Your accounting firm has accepted a compilation engagement from a client in which your firm is not independent.In that case you:

Accepted Answer

A) may not accept the engagement. 
B) may accept the engagement and disclose the lack of independence. 
C) may accept the engagement and not disclose the lack of independence. 
D) may accept the engagement and disclose the lack of independence and the reason for the lack of independence. 
A) may not accept the engagement. 
B) may accept the engagement and disclose the lack of independence. 
C) may accept the engagement and not disclose the lack of independence. 
D) may accept the engagement and disclose the lack of independence and the reason for the lack of independence.

Question 12

The two types of services provided in connection with the Statements on Standards for Accounting and Review Services are:

Accepted Answer

A) audit and examination services. 
B) compilation and review services. 
C) examination and review services. 
D) management advisory services and compilations. 
A) audit and examination services. 
B) compilation and review services. 
C) examination and review services. 
D) management advisory services and compilations.

Question 13

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements which substantially omits all disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America.

Accepted Answer

We have compiled the accompanying balanc

Question 14

Which of the following would not be included in a CPA's report based upon a review of the financial statements of a nonpublic entity?

Accepted Answer

A) A statement that the review was in accordance with generally accepted auditing standards 
B) A statement that all information included in the financial statements is the representation of management 
C) A statement describing the principal procedures performed 
D) A statement describing the auditor's conclusions based upon the results of the review 
A) A statement that the review was in accordance with generally accepted auditing standards 
B) A statement that all information included in the financial statements is the representation of management 
C) A statement describing the principal procedures performed 
D) A statement describing the auditor's conclusions based upon the results of the review

Question 15

A CPA firm can issue a compilation report even if it is not independent with respect to the client.

Accepted Answer

A) True 
 B)False

Question 16

An examination 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 17

In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's website complies with Trust Services principles?

Accepted Answer

A) absolute 
B) reasonable 
C) limited 
D) moderate 
A) absolute 
B) reasonable 
C) limited 
D) moderate

Question 18

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

We have compiled the accompanying balanc

Question 19

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

Accepted Answer

A) AICPA. 
B) PCAOB. 
C) SEC. 
D) SSARS. 
A) AICPA. 
B) PCAOB. 
C) SEC. 
D) SSARS.

Question 20

An auditor who conducts an examination in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of accounting other than GAAP, should issue a:

Accepted Answer

A) review report. 
B) special kind of report. 
C) qualified opinion. 
D) disclaimer of opinion. 
A) review report. 
B) special kind of report. 
C) qualified opinion. 
D) disclaimer of opinion.

Exam 25: Other Assurance Services

Evidence for a review engagement consists primarily of:

Attestation standards allow a CPA to perform all but which of the following services for a forecast or projection?

When performing a review (SSARS review)of financial statements, the accountant is required to obtain a letter of representation from management.

Statements on Standards for Accounting and Review Services (SSARS)govern the CPA's association with unaudited financial statements of nonpublic companies.

In a Type 2 engagement, the service auditor performs tests of the operating effectiveness of the controls, but does not have to perform any of the procedures performed in a Type 1 engagement.

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 distribution of which of the following types of reports is unrestricted?

The accountant's report on the examination of prospective financial statements should include a caveat that the prospective results may not be achieved.

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.

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

Your accounting firm has accepted a compilation engagement from a client in which your firm is not independent.In that case you:

The two types of services provided in connection with the Statements on Standards for Accounting and Review Services are:

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements which substantially omits all disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America.

Which of the following would not be included in a CPA's report based upon a review of the financial statements of a nonpublic entity?

A CPA firm can issue a compilation report even if it is not independent with respect to the client.

An examination results in a conclusion that represents ________ assurance.

In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's website complies with Trust Services principles?

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.

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

An auditor who conducts an examination in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of accounting other than GAAP, should issue a:

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

Internal Control, Control Risk, and Section 404 Audits

Fraud Auditing

The Impact of Information Technology on the Audit Process

Overall Audit Strategy and Audit Program

Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions

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, Substantive Tests of Transactions, and Accounts Payable

Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts

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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