Question 1

Other Comprehensive Basis of Accounting (OCBOA)includes all of the following EXCEPT

Accepted Answer

A) statements that conform to a regulatory agency. 
B) statements prepared on a tax basis. 
C) statements that conform to accounting principles that are generally accepted. 
D) statements prepared on a cash basis. 
A) statements that conform to a regulatory agency. 
B) statements prepared on a tax basis. 
C) statements that conform to accounting principles that are generally accepted. 
D) statements prepared on a cash basis.

Question 2

Attestation engagements may be more difficult than financial statement audits when

Accepted Answer

A) the establishment of suitable measurement criteria is difficult. 
B) internal controls are difficult to assess. 
C) when management may not understand the underlying assumptions of the attestation. 
D) when the report may be submitted to individuals with insufficient knowledge of the nature of an attestation engagement. 
A) the establishment of suitable measurement criteria is difficult. 
B) internal controls are difficult to assess. 
C) when management may not understand the underlying assumptions of the attestation. 
D) when the report may be submitted to individuals with insufficient knowledge of the nature of an attestation engagement.

Question 3

The accountant's standard report for a compilation service would not include a statement that

Accepted Answer

A) a compilation service has been performed in accordance with standards established by the AICPA. 
B) financial statement information is the representation of the owners of the business. 
C) compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data. 
D) financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance. 
A) a compilation service has been performed in accordance with standards established by the AICPA. 
B) financial statement information is the representation of the owners of the business. 
C) compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data. 
D) financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance.

Question 4

An accountant's report includes the phrase "We are not aware".This phrase indicates

Accepted Answer

A) an attestation was not performed. 
B) management had not established sufficient criteria for an opinion to be issued. 
C) the auditor is providing negative assurance. 
D) a disclaimer of opinion is presented. 
A) an attestation was not performed. 
B) management had not established sufficient criteria for an opinion to be issued. 
C) the auditor is providing negative assurance. 
D) a disclaimer of opinion is presented.

Question 5

ABC Company prepares financial statements showing the last two years,years X and Y (Year X is the year prior to year Y).The auditor performed an audit of year X and a review of year Y.The auditor may

Accepted Answer

A) report on the year Y review and reissue the year X audit report. 
B) provide only the report concerning the year Y review. 
C) reissue the year X audit report with an explanatory paragraph disclosing that only a review was performed on year Y. 
D) notify the client that prior year audited financial statements cannot be presented when the current years statements have not been audited. 
A) report on the year Y review and reissue the year X audit report. 
B) provide only the report concerning the year Y review. 
C) reissue the year X audit report with an explanatory paragraph disclosing that only a review was performed on year Y. 
D) notify the client that prior year audited financial statements cannot be presented when the current years statements have not been audited.

Question 6

During a review the auditor is required to obtain written representations from management.Which of the following is NOT one of the required elements of the representation?

Accepted Answer

A) Management's responsibility for the fair presentation of the financial statements 
B) Management's belief that it has answered all inquiries fully and truthfully 
C) Management has made all adjustments identified during the review 
D) Management has disclosed information about subsequent events 
A) Management's responsibility for the fair presentation of the financial statements 
B) Management's belief that it has answered all inquiries fully and truthfully 
C) Management has made all adjustments identified during the review 
D) Management has disclosed information about subsequent events

Question 7

Assurance services are defined as independent professional services that

Accepted Answer

A) establish criteria for effective measurement of business activity. 
B) improve the quality of information,or its context,for decision makers. 
C) attest to the adequacy of controls over business operations. 
D) develop efficient and effective accounting systems to ensure compliance with accounting standards and policy. 
A) establish criteria for effective measurement of business activity. 
B) improve the quality of information,or its context,for decision makers. 
C) attest to the adequacy of controls over business operations. 
D) develop efficient and effective accounting systems to ensure compliance with accounting standards and policy.

Question 8

When a company uses a service organization to prepare its payroll,the company's auditors

Accepted Answer

A) have no obligation concerning the internal controls at the service organization. 
B) need to understand the internal controls over the transaction regardless of the location of the control. 
C) must audit the internal controls at the service organization. 
D) should include the audit report of the service company's auditors with their auditors' report. 
A) have no obligation concerning the internal controls at the service organization. 
B) need to understand the internal controls over the transaction regardless of the location of the control. 
C) must audit the internal controls at the service organization. 
D) should include the audit report of the service company's auditors with their auditors' report.

Question 9

Which of the following best describes an engagement to report on an entity's internal control over financial reporting for a nonpublic company?

Accepted Answer

A) An attestation engagement to examine and report on management's written assertions about the effectiveness of its internal control structure 
B) An audit engagement to render an opinion on the entity's internal control structure 
C) A prospective engagement to project,for a period of time not to exceed one year,and report on the expected benefits of the entity's internal control structure 
D) A consulting engagement to provide constructive advice to the entity on its internal control structure 
A) An attestation engagement to examine and report on management's written assertions about the effectiveness of its internal control structure 
B) An audit engagement to render an opinion on the entity's internal control structure 
C) A prospective engagement to project,for a period of time not to exceed one year,and report on the expected benefits of the entity's internal control structure 
D) A consulting engagement to provide constructive advice to the entity on its internal control structure

Question 10

The AICPA Assurance Services Executive Committee identified five megatrends that can affect public accounting firms'' business.Which of the following is NOT one of the megatrends they identified?

Accepted Answer

A) Information Technology 
B) The shift from the industrial age to the knowledge age 
C) Globalization 
D) Merging of corporations creating fewer audit opportunities 
A) Information Technology 
B) The shift from the industrial age to the knowledge age 
C) Globalization 
D) Merging of corporations creating fewer audit opportunities

Question 11

In reporting on a nonpublic entity's internal control over financial reporting,an accountant should include a paragraph that describes the

Accepted Answer

A) documentary evidence regarding the control environment factors. 
B) changes in the entity's internal control since the prior report. 
C) potential benefits from the accountant's suggested improvements. 
D) inherent limitations of internal control. 
A) documentary evidence regarding the control environment factors. 
B) changes in the entity's internal control since the prior report. 
C) potential benefits from the accountant's suggested improvements. 
D) inherent limitations of internal control.

Question 12

In an agreed-upon procedures engagement,an accountant

Accepted Answer

A) follows all of the Fundamental Principles of GAAS. 
B) restricts the report to specified users. 
C) includes negative assurance in the report. 
D) gives a qualified audit report. 
A) follows all of the Fundamental Principles of GAAS. 
B) restricts the report to specified users. 
C) includes negative assurance in the report. 
D) gives a qualified audit report.

Question 13

The reporting standards for an attestation are different from that of an audit because they require

Accepted Answer

A) the report to include an opinion. 
B) the report to identify the subject matter of the assertion being reported on. 
C) the report requires a statement that the presentation is not in accordance with GAAP. 
D) the report requires a disclosure of the procedures performed during the attestation. 
A) the report to include an opinion. 
B) the report to identify the subject matter of the assertion being reported on. 
C) the report requires a statement that the presentation is not in accordance with GAAP. 
D) the report requires a disclosure of the procedures performed during the attestation.

Question 14

A responsible party for information to subject to an attestation engagement would not include

Accepted Answer

A) the client's controller. 
B) the independent accountant. 
C) the client's Vice President of Marketing. 
D) a client employee named in a contract or regulation as being responsible for the information. 
A) the client's controller. 
B) the independent accountant. 
C) the client's Vice President of Marketing. 
D) a client employee named in a contract or regulation as being responsible for the information.

Other Comprehensive Basis of Accounting (OCBOA)includes all of the following EXCEPT

Attestation engagements may be more difficult than financial statement audits when

The accountant's standard report for a compilation service would not include a statement that

An accountant's report includes the phrase "We are not aware".This phrase indicates

ABC Company prepares financial statements showing the last two years,years X and Y (Year X is the year prior to year Y).The auditor performed an audit of year X and a review of year Y.The auditor may

During a review the auditor is required to obtain written representations from management.Which of the following is NOT one of the required elements of the representation?

Assurance services are defined as independent professional services that

When a company uses a service organization to prepare its payroll,the company's auditors

Which of the following best describes an engagement to report on an entity's internal control over financial reporting for a nonpublic company?

The AICPA Assurance Services Executive Committee identified five megatrends that can affect public accounting firms'' business.Which of the following is NOT one of the megatrends they identified?

In reporting on a nonpublic entity's internal control over financial reporting,an accountant should include a paragraph that describes the

In an agreed-upon procedures engagement,an accountant

The reporting standards for an attestation are different from that of an audit because they require

A responsible party for information to subject to an attestation engagement would not include

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters

Exam 13: Other Public Accounting Services

Other Comprehensive Basis of Accounting (OCBOA)includes all of the following EXCEPT

Attestation engagements may be more difficult than financial statement audits when

The accountant's standard report for a compilation service would not include a statement that

An accountant's report includes the phrase "We are not aware".This phrase indicates

ABC Company prepares financial statements showing the last two years,years X and Y (Year X is the year prior to year Y).The auditor performed an audit of year X and a review of year Y.The auditor may

During a review the auditor is required to obtain written representations from management.Which of the following is NOT one of the required elements of the representation?

Assurance services are defined as independent professional services that

When a company uses a service organization to prepare its payroll,the company's auditors

Which of the following best describes an engagement to report on an entity's internal control over financial reporting for a nonpublic company?

The AICPA Assurance Services Executive Committee identified five megatrends that can affect public accounting firms'' business.Which of the following is NOT one of the megatrends they identified?

In reporting on a nonpublic entity's internal control over financial reporting,an accountant should include a paragraph that describes the

In an agreed-upon procedures engagement,an accountant

The reporting standards for an attestation are different from that of an audit because they require

A responsible party for information to subject to an attestation engagement would not include

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Professional Ethics

Legal Liability

Internal Audits, Governmental Audits, and Fraud Examinations

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing and Information Technology

Filters