Question 1

Practitioners who perform reviews and compilations are referred to in the SSARS standards as:

Accepted Answer

A) bookkeepers. 
B) accountants. 
C) auditors. 
D) CPAs. 
A) bookkeepers. 
B) accountants. 
C) auditors. 
D) CPAs.

Question 2

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 3

Which of the following is not a standard contained in both the Attestation Standards and Generally Accepted Auditing Standards with regards to the standards of field work?

Accepted Answer

A) The examination is to be performed by a person having adequate technical training. 
B) An independence in mental attitude is to be maintained. 
C) Sufficient evidence is to be obtained. 
D) The practitioner must obtain a sufficient understanding of the client's internal control. 
A) The examination is to be performed by a person having adequate technical training. 
B) An independence in mental attitude is to be maintained. 
C) Sufficient evidence is to be obtained. 
D) The practitioner must obtain a sufficient understanding of the client's internal control.

Question 4

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

Accepted Answer

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

Question 5

All of the following are steps that should be performed in a review engagement except for:

Accepted Answer

A) understand the company's ownership structure. 
B) read the company's financial statements. 
C) perform analytical procedures. 
D) assess fraud risk. 
A) understand the company's ownership structure. 
B) read the company's financial statements. 
C) perform analytical procedures. 
D) assess fraud risk.

Question 6

Assurance provided by a review is substantially less than an audit.Which of the following statements is true regarding these 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 7

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 8

Auditors frequently audit statements prepared on bases other than GAAP.Discuss four commonly used bases other than GAAP.

Accepted Answer

•Cash or modified cash basis.With the ca

Question 9

Systrust services are performed under the direction of the SSAEs.

Accepted Answer

A) True 
 B)False

Question 10

Examination attestation engagements result in a conclusion that is in a positive form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Review reports are normally dated as of the client's balance sheet date.

Accepted Answer

A) True 
 B)False

Question 13

For compilations, an accountant does which of the following?

Accepted Answer

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

Question 14

A financial statement review conducted in compliance with SSARS requires the accountant to obtain evidence to express negative assurance.One of these procedures is to "perform analytical procedures." List three other procedures the accountant must perform.

Accepted Answer

•Obtain knowledge of the accounting prin

Question 15

A report on an examination of a forecast with an unqualified opinion would not address which of the following?

Accepted Answer

A) The prospective results may not be achieved. 
B) The CPA assumes no responsibility to update the report for events and circumstances occurring after the date of the report. 
C) The fact that the examination was conducted in accordance with attestation standards established by the AICPA. 
D) The auditor's opinion on the adequacy of the company's internal controls. 
A) The prospective results may not be achieved. 
B) The CPA assumes no responsibility to update the report for events and circumstances occurring after the date of the report. 
C) The fact that the examination was conducted in accordance with attestation standards established by the AICPA. 
D) The auditor's opinion on the adequacy of the company's internal controls.

Question 16

WebTrust services are performed under the direction of the SSARS.

Accepted Answer

A) True 
 B)False

Question 17

When performing a review of interim information for a public company, the accountant ordinarily does not perform tests of the accounting records, independent confirmations, or physical examinations.

Accepted Answer

A) True 
 B)False

Question 18

When CPAs do audits for specified elements, accounts, or items:

Accepted Answer

A) materiality is defined in terms of the overall financial statements. 
B) materiality is defined in terms of the elements, accounts, or items being audited. 
C) auditors do not need to extend their audit efforts to include other elements, accounts, or items that are interrelated with those being audited. 
D) the authority for auditing specified elements, accounts, or items is in the review and compilation standards. 
A) materiality is defined in terms of the overall financial statements. 
B) materiality is defined in terms of the elements, accounts, or items being audited. 
C) auditors do not need to extend their audit efforts to include other elements, accounts, or items that are interrelated with those being audited. 
D) the authority for auditing specified elements, accounts, or items is in the review and compilation standards.

Question 19

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

Question 20

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 prospe

Exam 25: Other Assurance Services

Practitioners who perform reviews and compilations are referred to in the SSARS standards as:

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

Which of the following is not a standard contained in both the Attestation Standards and Generally Accepted Auditing Standards with regards to the standards of field work?

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

All of the following are steps that should be performed in a review engagement except for:

Assurance provided by a review is substantially less than an audit.Which of the following statements is true regarding these services?

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

Auditors frequently audit statements prepared on bases other than GAAP.Discuss four commonly used bases other than GAAP.

Systrust services are performed under the direction of the SSAEs.

Examination attestation engagements result in a conclusion that is in a positive form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

Reports on agreed-upon procedures are intended to be distributed:

Review reports are normally dated as of the client's balance sheet date.

For compilations, an accountant does which of the following?

A financial statement review conducted in compliance with SSARS requires the accountant to obtain evidence to express negative assurance.One of these procedures is to "perform analytical procedures." List three other procedures the accountant must perform.

A report on an examination of a forecast with an unqualified opinion would not address which of the following?

WebTrust services are performed under the direction of the SSARS.

When performing a review of interim information for a public company, the accountant ordinarily does not perform tests of the accounting records, independent confirmations, or physical examinations.

When CPAs do audits for specified elements, accounts, or items:

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

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

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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