Question 1

An interim review of the financial information for public companies is performed following standards of the:

Accepted Answer

A)  AICPA. 
B)  PCAOB. 
C)  SEC. 
D)  SSARS. 
A)  AICPA. 
B)  PCAOB. 
C)  SEC. 
D)  SSARS.

Question 2

In an examination engagement for prospective financial statements,the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

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.

Accepted Answer

A) True 
 B)False

Question 6

The standards which govern the CPA's association with unaudited financial statements of nonpublic companies are the:

Accepted Answer

A)  AICPA's Code of Professional Conduct. 
B)  Statements on Auditing Standards (SASs). 
C)  Statements of Standards on Attestation Engagements (SSAEs). 
D)  Statements on Standards for Accounting and Review Services (SSARS). 
A)  AICPA's Code of Professional Conduct. 
B)  Statements on Auditing Standards (SASs). 
C)  Statements of Standards on Attestation Engagements (SSAEs). 
D)  Statements on Standards for Accounting and Review Services (SSARS).

Question 7

In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's website complies with Trust Services principles?

Accepted Answer

A)  absolute 
B)  reasonable 
C)  limited 
D)  moderate 
A)  absolute 
B)  reasonable 
C)  limited 
D)  moderate

Question 8

Which are prospective financial statements that present an entity's financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief,given one or more hypothetical assumptions?

Accepted Answer

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

Question 9

An auditor who conducts an examination in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of accounting other than GAAP,should issue a:

Accepted Answer

A)  review report. 
B)  special kind of report. 
C)  qualified opinion. 
D)  disclaimer of opinion. 
A)  review report. 
B)  special kind of report. 
C)  qualified opinion. 
D)  disclaimer of opinion.

Question 10

When a CPA performs an examination engagement under the attestation standards,the amount of evidence gathered is ________ and the level of assurance is ________.

Accepted Answer

A)  extensive, varying 
B)  significant, high 
C)  extensive, high 
D)  significant, moderate 
A)  extensive, varying 
B)  significant, high 
C)  extensive, high 
D)  significant, moderate

Question 11

Which of the following is not one of the types of engagements and related forms of conclusions that are defined by the attestation standards?

Accepted Answer

A)  Reviews 
B)  Compilations 
C)  Examinations 
D)  Agreed-upon procedures 
A)  Reviews 
B)  Compilations 
C)  Examinations 
D)  Agreed-upon procedures

Question 12

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 13

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 14

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 15

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

Accepted Answer

•Compilation with full disclosure.This r

Question 16

A financial statement review conducted in compliance with SSARS includes obtaining an understanding of internal control.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following results in a conclusion that represents positive assurance?

Accepted Answer

A)  Review 
B)  Compilation 
C)  Examination 
D)  Agreed upon procedure engagement 
A)  Review 
B)  Compilation 
C)  Examination 
D)  Agreed upon procedure engagement

Question 18

Which of the following is not an accurate statement regarding agreed-upon procedures engagements?

Accepted Answer

A)  These engagements are also known as procedures and findings engagements. 
B)  A report for such an engagement describes the findings resulting from the procedures, but cannot describe the procedures agreed upon. 
C)  All agreed-upon procedure engagements are now under the scope of attestation standards. 
D)  Agreed-upon procedures engagements appeal to CPAs because management, or a third-party user, specifies the procedures they want done. 
A)  These engagements are also known as procedures and findings engagements. 
B)  A report for such an engagement describes the findings resulting from the procedures, but cannot describe the procedures agreed upon. 
C)  All agreed-upon procedure engagements are now under the scope of attestation standards. 
D)  Agreed-upon procedures engagements appeal to CPAs because management, or a third-party user, specifies the procedures they want done.

Question 19

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 20

In a Type 2 engagement,the service auditor performs tests of the operating effectiveness of the controls,but does not have to perform any of the procedures performed in a Type 1 engagement.

Accepted Answer

A) True 
 B)False

Exam 25: Other Assurance Services

An interim review of the financial information for public companies is performed following standards of the:

In an examination engagement for prospective financial statements,the CPA obtains satisfaction as to the completeness and reasonableness of all the assumptions.

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

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

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.

The standards which govern the CPA's association with unaudited financial statements of nonpublic companies are the:

In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's website complies with Trust Services principles?

Which are prospective financial statements that present an entity's financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief,given one or more hypothetical assumptions?

An auditor who conducts an examination in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of accounting other than GAAP,should issue a:

When a CPA performs an examination engagement under the attestation standards,the amount of evidence gathered is ________ and the level of assurance is ________.

Which of the following is not one of the types of engagements and related forms of conclusions that are defined by the attestation standards?

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.

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

General use statements are prepared for use by ________.

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

A financial statement review conducted in compliance with SSARS includes obtaining an understanding of internal control.

Which of the following results in a conclusion that represents positive assurance?

Which of the following is not an accurate statement regarding agreed-upon procedures engagements?

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.

In a Type 2 engagement,the service auditor performs tests of the operating effectiveness of the controls,but does not have to perform any of the procedures performed in a Type 1 engagement.

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

Filters

When a CPA performs an examination engagement under the attestation standards,the amount of evidence gathered is and the level of assurance is .