Question 1

An agreed-upon procedures engagement is one in which:

Accepted Answer

A) the CPA and management agree that procedures will be applied to all accounts and circumstances. 
B) the CPA and management agree that procedures will not be applied to all accounts and circumstances. 
C) the CPA, the responsible party making the assertions, and the specific persons who are the intended users of the CPA's report agree to all the procedures the CPA will perform. 
D) the CPA, the responsible party making the assertions, and the specific persons who are the intended users of the CPA's report agree that the CPA will apply his judgment to determine the procedures to be performed. 
A) the CPA and management agree that procedures will be applied to all accounts and circumstances. 
B) the CPA and management agree that procedures will not be applied to all accounts and circumstances. 
C) the CPA, the responsible party making the assertions, and the specific persons who are the intended users of the CPA's report agree to all the procedures the CPA will perform. 
D) the CPA, the responsible party making the assertions, and the specific persons who are the intended users of the CPA's report agree that the CPA will apply his judgment to determine the procedures to be performed.

Question 2

Auditors should provide debt compliance letters only for clients for whom the auditor has done an audit of the overall financial statements.

Accepted Answer

A) True 
 B)False

Question 3

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, the general nature of material items omitted, and the net effect of such omissions. 
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, the general nature of material items omitted, and the net effect of such omissions. 
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 4

In a review service where the client has failed to follow applicable accounting standards, the accountant is:

Accepted Answer

A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report. 
B) required to determine the effect of a departure if management has not done so, and that fact must be disclosed in the report. 
C) not required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report. 
D) required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report. 
A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report. 
B) required to determine the effect of a departure if management has not done so, and that fact must be disclosed in the report. 
C) not required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report. 
D) required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.

An agreed-upon procedures engagement is one in which:

Auditors should provide debt compliance letters only for clients for whom the auditor has done an audit of the overall financial statements.

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

In a review service where the client has failed to follow applicable accounting standards, the accountant is:

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

Filters

Exam 25: Other Assurance Services

An agreed-upon procedures engagement is one in which:

Auditors should provide debt compliance letters only for clients for whom the auditor has done an audit of the overall financial statements.

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

In a review service where the client has failed to follow applicable accounting standards, the accountant is:

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

Filters