Question 1

Which of the following is a type of prospective financial statement as defined by the AICPA attestation standards?

Accepted Answer

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

Question 2

General use statements are prepared for use by ________.

Accepted Answer

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

Question 3

When the accountant has performed a review and has determined that no material changes to the financial statements are needed, the first paragraph of the review report:

Accepted Answer

A) expresses positive assurance about the financial statements. 
B) notes the accountant's responsibility to conduct the review. 
C) identifies the entity and the period of financial statements subject to the review. 
D) specifies that management is responsible for the financial statements. 
A) expresses positive assurance about the financial statements. 
B) notes the accountant's responsibility to conduct the review. 
C) identifies the entity and the period of financial statements subject to the review. 
D) specifies that management is responsible for the financial statements.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Current professional standards prohibit accountants from performing engagements to review forecasts or projections.

Accepted Answer

A) True 
 B)False

Question 6

The statement that "We are not aware of any material modifications that should be made to the accompanying financial statements" expresses which of the following?

Accepted Answer

A) Disclaimer of an opinion 
B) Negative assurance 
C) Negative confirmation 
D) Shared opinion 
A) Disclaimer of an opinion 
B) Negative assurance 
C) Negative confirmation 
D) Shared opinion

Question 7

SSARS are issued by the SEC.

Accepted Answer

A) True 
 B)False

Question 8

The WebTrust service requires that a CPA update its testing of the e-commerce aspects of a entity's web site at least every:

Accepted Answer

A) ninety days. 
B) month. 
C) six months. 
D) twelve months. 
A) ninety days. 
B) month. 
C) six months. 
D) twelve months.

Question 9

Compilation reports may be of all but which of the following types?

Accepted Answer

A) Compilation with limited independence 
B) Compilation with full disclosure 
C) Compilation without independence 
D) Compilation that omits substantially all disclosures 
A) Compilation with limited independence 
B) Compilation with full disclosure 
C) Compilation without independence 
D) Compilation that omits substantially all disclosures

Question 10

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 11

Each page of the financial statements reviewed for a nonpublic entity should include the reference:

Accepted Answer

A) "These financial statements are unaudited." 
B) "We express no assurance on these financial statements." 
C) "See independent accountant's review report." 
D) "See the audit opinion for the review procedures performed." 
A) "These financial statements are unaudited." 
B) "We express no assurance on these financial statements." 
C) "See independent accountant's review report." 
D) "See the audit opinion for the review procedures performed."

Question 12

Which of the following is not an element of examining a forecast?

Accepted Answer

A) Ivaluating the preparation of the prospective financial statements 
B) Understanding internal controls 
C) Evaluating the support underlying the assumptions 
D) Issuing an examination report 
A) Ivaluating the preparation of the prospective financial statements 
B) Understanding internal controls 
C) Evaluating the support underlying the assumptions 
D) Issuing an examination report

Question 13

As a CPA, you have been engaged to perform an attestation engagement.You would typically:

Accepted Answer

A) express a conclusion about an assertion. 
B) provide management consulting services. 
C) prepare financial forecasts to secure in preparation for receiving debt funding. 
D) compile financial statements for the client. 
A) express a conclusion about an assertion. 
B) provide management consulting services. 
C) prepare financial forecasts to secure in preparation for receiving debt funding. 
D) compile financial statements for the client.

Question 14

The highest level of assurance is provided for in which one of the following engagements?

Accepted Answer

A) Review 
B) Compilation 
C) Audit 
D) None of the above 
A) Review 
B) Compilation 
C) Audit 
D) None of the above

Question 15

Specific attestation standards have been developed in all but which of the following areas?

Accepted Answer

A) Pro forma financial information 
B) Compliance with laws and regulations 
C) Prospective financial statements 
D) Standards have been developed for all of the above. 
A) Pro forma financial information 
B) Compliance with laws and regulations 
C) Prospective financial statements 
D) Standards have been developed for all of the above.

Question 16

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 17

Who developed the WebTrust service?
 Briefly explain this service.

Accepted Answer

WebTrust was developed jointly by the AI

Question 18

SSAEs are issued by the AICPA.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The engagement and report on debt compliance letters should be limited to compliance matters that the auditor is qualified to evaluate.Which of the following engagements would be inappropriate for the CPA to attempt to evaluate?

Accepted Answer

A) Determining whether the client has properly restricted its business activities to the requirements of an agreement. 
B) Determining whether principal and interest payments were made when due. 
C) Determining whether the proper limitations were maintained on dividends, working capital, and debt ratios. 
D) Determining whether the accounting records were adequate for conducting an ordinary audit. 
A) Determining whether the client has properly restricted its business activities to the requirements of an agreement. 
B) Determining whether principal and interest payments were made when due. 
C) Determining whether the proper limitations were maintained on dividends, working capital, and debt ratios. 
D) Determining whether the accounting records were adequate for conducting an ordinary audit.

Exam 25: Other Assurance Services

Which of the following is a type of prospective financial statement as defined by the AICPA attestation standards?

General use statements are prepared for use by ________.

When the accountant has performed a review and has determined that no material changes to the financial statements are needed, the first paragraph of the review report:

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

Current professional standards prohibit accountants from performing engagements to review forecasts or projections.

The statement that "We are not aware of any material modifications that should be made to the accompanying financial statements" expresses which of the following?

SSARS are issued by the SEC.

The WebTrust service requires that a CPA update its testing of the e-commerce aspects of a entity's web site at least every:

Compilation reports may be of all but which of the following types?

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

Each page of the financial statements reviewed for a nonpublic entity should include the reference:

Which of the following is not an element of examining a forecast?

As a CPA, you have been engaged to perform an attestation engagement.You would typically:

The highest level of assurance is provided for in which one of the following engagements?

Specific attestation standards have been developed in all but which of the following areas?

The last paragraph of the accountant's review report:

Who developed the WebTrust service? Briefly explain this service.

SSAEs are issued by the AICPA.

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

The engagement and report on debt compliance letters should be limited to compliance matters that the auditor is qualified to evaluate.Which of the following engagements would be inappropriate for the CPA to attempt to evaluate?

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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