Exam 25: Other Assurance Services

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.

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.

The quarterly reports submitted to the SEC by the client

Which of the following statements is not correct?

In a preparation service, if the financial statements are expected to be used by a third party, the accountant must provide at least minimal assurance on the financial statements.

Discuss each of the three types of compilation reports and the circumstances in which each should be used.

The service auditor's Type 2 report contains

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

General use statements are prepared for use by

For a preparation service, each page of the financial statements, should indicate, at a minimum, that "no assurance is provided" on the financial statements.

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

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

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

Statements on Standards for Attestation Engagements are established by the

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

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.

A review provides limited assurance on the financial statements, whereas a compilation report provides no expressed assurance.

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

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