Question 1

Auditors of the financial statements of public companies must follow the guidelines in the SSAEs.

Accepted Answer

A) True 
 B)False

Question 2

Of the three types of attestation engagements, examination engagements provide a higher level of assurance than agreed-upon procedures engagements but less than review engagements.

Accepted Answer

A) True 
 B)False

Question 3

CPAs must be independent to issue a review report.

Accepted Answer

A) True 
 B)False

Question 4

When issuing a debt compliance letter, the auditor's opinion should be in the form of a negative assurance.

Accepted Answer

A) True 
 B)False

Question 5

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 6

Which of the following types of engagement reports would provide positive assurance?

Accepted Answer

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

Question 7

The use of positive assurance is appropriate in a review attestation report.

Accepted Answer

A) True 
 B)False

Question 8

Define forecast and projection.

Accepted Answer

Forecasts are prospective financial stat

Question 9

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 10

Which of the following is not one of the types of engagements and related forms of conclusions that are defined by the attestation standards?

Accepted Answer

A) Reviews 
B) Compilations 
C) Examinations 
D) Agreed-upon procedures 
A) Reviews 
B) Compilations 
C) Examinations 
D) Agreed-upon procedures

Question 11

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 12

CPAs must be independent to issue a compilation report.

Accepted Answer

A) True 
 B)False

Question 13

The concept of limited assurance is provided for in which of the following engagements?

Accepted Answer

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

Question 14

A financial statement review conducted in compliance with SSARS includes obtaining an understanding of internal control.

Accepted Answer

A) True 
 B)False

Question 15

Briefly describe a SysTrust engagement.

Accepted Answer

A SysTrust licensed CPA evaluates a comp

Question 16

CPAs must obtain a specific license to perform WebTrust or SysTrust services.

Accepted Answer

A) True 
 B)False

Question 17

Which are prospective financial statements that present an entity's expected financial position, results of operations, and cash flows, to the best of the responsible party's knowledge and belief?

Accepted Answer

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

Question 18

Statements on Standards for Attestation Engagements are established by the:

Accepted Answer

A) Securities and Exchange Commission. 
B) Public Company Accounting Oversight Board. 
C) Auditing Standards Board of the AICPA. 
D) Accounting and Review Services Committee. 
A) Securities and Exchange Commission. 
B) Public Company Accounting Oversight Board. 
C) Auditing Standards Board of the AICPA. 
D) Accounting and Review Services Committee.

Question 19

State three types of assurance services that fall within the auditing standards but are not audits, reviews, or compilations of financial statements in accordance with GAAP.

Accepted Answer

•Other comprehensive basis of

Question 20

An accountant has accepted an engagement in which the audit procedures of inquiry and analytical procedures will be employed.These procedures will form the basis for issuance of:

Accepted Answer

A) a compilation report. 
B) audit report on supplemental information issued by the client. 
C) management advisory report requested by the audit committee. 
D) review report on financial statements for a nonpublic company. 
A) a compilation report. 
B) audit report on supplemental information issued by the client. 
C) management advisory report requested by the audit committee. 
D) review report on financial statements for a nonpublic company.

Exam 25: Other Assurance Services

Auditors of the financial statements of public companies must follow the guidelines in the SSAEs.

Of the three types of attestation engagements, examination engagements provide a higher level of assurance than agreed-upon procedures engagements but less than review engagements.

CPAs must be independent to issue a review report.

When issuing a debt compliance letter, the auditor's opinion should be in the form of a negative assurance.

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.

Which of the following types of engagement reports would provide positive assurance?

The use of positive assurance is appropriate in a review attestation report.

Define forecast and projection.

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

Which of the following is not one of the types of engagements and related forms of conclusions that are defined by the attestation standards?

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

CPAs must be independent to issue a compilation report.

The concept of limited assurance is provided for in which of the following engagements?

A financial statement review conducted in compliance with SSARS includes obtaining an understanding of internal control.

Briefly describe a SysTrust engagement.

CPAs must obtain a specific license to perform WebTrust or SysTrust services.

Which are prospective financial statements that present an entity's expected financial position, results of operations, and cash flows, to the best of the responsible party's knowledge and belief?

Statements on Standards for Attestation Engagements are established by the:

State three types of assurance services that fall within the auditing standards but are not audits, reviews, or compilations of financial statements in accordance with GAAP.

An accountant has accepted an engagement in which the audit procedures of inquiry and analytical procedures will be employed.These procedures will form the basis for issuance of:

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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