Question 1

Which of the following is a attestation standard under the standards of reporting?

Accepted Answer

A)  The practitioner must have adequate technical training. 
B)  The practitioner must adequately plan the work. 
C)  The practitioner must evaluate internal controls. 
D)  The practitioner must identify the subject matter or assertion being reported on. 
A)  The practitioner must have adequate technical training. 
B)  The practitioner must adequately plan the work. 
C)  The practitioner must evaluate internal controls. 
D)  The practitioner must identify the subject matter or assertion being reported on.

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Evidence for a review engagement consists primarily of:

Accepted Answer

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

Question 4

CPAs must be independent to issue a review report.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements which substantially omits all disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America.

Accepted Answer

We have compiled the accompanying balanc

Question 9

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 10

An examination results in a conclusion that represents ________ assurance.

Accepted Answer

A)  limited assurance 
B)  negative 
C)  positive 
D)  unequivocal 
A)  limited assurance 
B)  negative 
C)  positive 
D)  unequivocal

Question 11

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

Question 12

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.

Question 13

Briefly describe a SysTrust engagement.

Accepted Answer

A SysTrust licensed CPA evaluates a comp

Question 14

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 15

The guidance for service auditors has been moved to the attestation standards.

Accepted Answer

A) True 
 B)False

Question 16

The service auditor's Type 2 report contains:

Accepted Answer

A)  an opinion on the reasonableness of the financial statements. 
B)  the two opinions about the description and suitability of the design of controls that are issued in a Type 1 report plus an additional opinion about the operating effectiveness of controls throughout the period. 
C)  contains an opinion only on the operating effectiveness of the controls. 
D)  an opinion on the service company's website. 
A)  an opinion on the reasonableness of the financial statements. 
B)  the two opinions about the description and suitability of the design of controls that are issued in a Type 1 report plus an additional opinion about the operating effectiveness of controls throughout the period. 
C)  contains an opinion only on the operating effectiveness of the controls. 
D)  an opinion on the service company's website.

Question 17

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 18

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 19

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 20

When performing a review (SSARS review)of financial statements,the accountant is required to obtain a letter of representation from management.

Accepted Answer

A) True 
 B)False

Exam 25: Other Assurance Services

Which of the following is a attestation standard under the standards of reporting?

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

Evidence for a review engagement consists primarily of:

CPAs must be independent to issue a review report.

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

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

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

Draft a report that would be appropriate when an independent accountant has performed a compilation of financial statements which substantially omits all disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America.

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

An examination results in a conclusion that represents ________ assurance.

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

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

Briefly describe a SysTrust engagement.

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

The guidance for service auditors has been moved to the attestation standards.

The service auditor's Type 2 report contains:

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

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

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:

When performing a review (SSARS review)of financial statements,the accountant is required to obtain a letter of representation from management.

The Assurance Services Market

The Audit Standards Setting Process

Audit Reports

Legal Liability Considerations for Auditors

Ethics and the Audit Profession

Audit Responsibilities and Objectives

Nature and Type of Audit Evidence

Audit Planning

Considering Materiality and Audit Risk

Considering Internal Control

Considering the Risk of Fraud

Implications of Information Technology for the Audit Process

Developing the Overall Audit Plan 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 Inventory and Warehousing Cycle

Audit of the Payroll and Personnel Cycle

Audit of the Capital Acquisition and Repayment Cycle

Audit of Cash and Financial Instruments

Audit Completion

Internal and Governmental Financial Auditing and Operational Auditing

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