Question 1

Explain each of the three PrimePlus Services typically offered by practitioners.

Accepted Answer

The first service typically offered is c

Question 2

During a review of the financial statements of a nonpublic entity,the CPA finds that the financial statements contain a material departure from generally accepted accounting principles.If management refuses to correct the problem,the CPA should

Accepted Answer

A)  Disclose the departure in a separate paragraph of the report. 
B)  Issue an adverse opinion. 
C)  Attach a footnote explaining the effects of the departure. 
D)  Issue a compilation report. 
A)  Disclose the departure in a separate paragraph of the report. 
B)  Issue an adverse opinion. 
C)  Attach a footnote explaining the effects of the departure. 
D)  Issue a compilation report.

Question 3

The public has turned to CPAs to provide assurance services primarily because

Accepted Answer

A)  The independence and objectivity of CPAs increase the public trust. 
B)  There is a need to develop new revenue streams for accounting firms. 
C)  Audits do not provide reliable information for decision makers. 
D)  CPAs have been proactive in identifying new types of assurance services to market to customers. 
A)  The independence and objectivity of CPAs increase the public trust. 
B)  There is a need to develop new revenue streams for accounting firms. 
C)  Audits do not provide reliable information for decision makers. 
D)  CPAs have been proactive in identifying new types of assurance services to market to customers.

Question 4

In a review engagement,the accountant must make all of the following inquiries except those to:

Accepted Answer

A)  Identify subsequent events having a material effect on the statements. 
B)  Understand internal controls. 
C)  Identify actions taken at stockholders' meetings. 
D)  Ascertain whether statements are in accordance with GAAP. 
A)  Identify subsequent events having a material effect on the statements. 
B)  Understand internal controls. 
C)  Identify actions taken at stockholders' meetings. 
D)  Ascertain whether statements are in accordance with GAAP.

Question 5

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Accepted Answer

A)  The CPA is not permitted to provide any other services for the client if he or she is to perform the service. 
B)  The service will require the CPA to apply all of the attestation and auditing standards. 
C)  The service provides information regarding whether the information system provides reliable information for internal operating decisions. 
D)  Performing the service will not require the collection of evidence. 
A)  The CPA is not permitted to provide any other services for the client if he or she is to perform the service. 
B)  The service will require the CPA to apply all of the attestation and auditing standards. 
C)  The service provides information regarding whether the information system provides reliable information for internal operating decisions. 
D)  Performing the service will not require the collection of evidence.

Question 6

Independence is one of the general standards for attestation engagements.

Accepted Answer

A) True 
 B)False

Question 7

Prospective financial statements may be prepared for

Accepted Answer

A)  General use. 
B)  Limited use. 
C)  Internal use. 
D)  All of the above. 
A)  General use. 
B)  Limited use. 
C)  Internal use. 
D)  All of the above.

Question 8

Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on an entity's internal control over financial reporting?

Accepted Answer

A)  The practitioner anticipates relying on the entity's internal control in a financial statement audit. 
B)  Management accepts responsibility for the effectiveness of internal control. 
C)  The practitioner is a continuing auditor who previously has audited the entity's financial statements. 
D)  Management agrees not to present the practitioner's report in a general-use document to stockholders. 
A)  The practitioner anticipates relying on the entity's internal control in a financial statement audit. 
B)  Management accepts responsibility for the effectiveness of internal control. 
C)  The practitioner is a continuing auditor who previously has audited the entity's financial statements. 
D)  Management agrees not to present the practitioner's report in a general-use document to stockholders.

Question 9

An entity's WebTrust seal is managed by

Accepted Answer

A)  The CPA who performed the service. 
B)  The AICPA. 
C)  A third-party service organization. 
D)  The entity receiving the seal. 
A)  The CPA who performed the service. 
B)  The AICPA. 
C)  A third-party service organization. 
D)  The entity receiving the seal.

Question 10

Direct services offered under PrimePlus include all of the following except:

Accepted Answer

A)  Accounting for the client's income. 
B)  Providing assurances about the quality of care. 
C)  Supervising the client's investments. 
D)  Arranging for payment of care. 
A)  Accounting for the client's income. 
B)  Providing assurances about the quality of care. 
C)  Supervising the client's investments. 
D)  Arranging for payment of care.

Question 11

Given one or more hypothetical assumptions,a responsible party may prepare,to the best of his knowledge and belief,an entity's expected financial position,results of operations,and changes in cash flows.Such prospective financial statements are known as

Accepted Answer

A)  Pro forma financial statements. 
B)  Financial projections. 
C)  Partial presentations. 
D)  Financial forecasts. 
A)  Pro forma financial statements. 
B)  Financial projections. 
C)  Partial presentations. 
D)  Financial forecasts.

Question 12

For a practitioner to examine management's assertions about the effectiveness of internal controls,all of the following conditions are necessary except:

Accepted Answer

A)  Sufficient competent evidence can be developed to support the evaluation. 
B)  The practitioner must have already concluded that the financial statements are fairly presented in accordance with the applicable accounting framework. 
C)  The entity's management accepts responsibility for the effectiveness of its internal control. 
D)  All of the conditions above are necessary. 
A)  Sufficient competent evidence can be developed to support the evaluation. 
B)  The practitioner must have already concluded that the financial statements are fairly presented in accordance with the applicable accounting framework. 
C)  The entity's management accepts responsibility for the effectiveness of its internal control. 
D)  All of the conditions above are necessary.

Question 13

Match between columns
                        Premises:  Online Privacy
 Security
 Availability
 Confidentiality
 Processing integrity

Accepted Answer

The Answer of The system is protected against unauthorized access is...

Question 14

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

Accepted Answer

A) True 
 B)False

Question 15

Management and the external auditor are responsible for the effectiveness of the entity's internal control.

Accepted Answer

A) True 
 B)False

Question 16

An accountant's report expressing an opinion on an entity's internal controls should state that

Accepted Answer

A)  Only those controls on which the accountant intends to rely for purposes of the financial statement audit were reviewed, tested, and evaluated. 
B)  The establishment and maintenance of the internal controls is the responsibility of management. 
C)  The study and evaluation of the internal controls was conducted in accordance with generally accepted auditing standards. 
D)  Distribution of the report is restricted for use only by management and the board of directors. 
A)  Only those controls on which the accountant intends to rely for purposes of the financial statement audit were reviewed, tested, and evaluated. 
B)  The establishment and maintenance of the internal controls is the responsibility of management. 
C)  The study and evaluation of the internal controls was conducted in accordance with generally accepted auditing standards. 
D)  Distribution of the report is restricted for use only by management and the board of directors.

Question 17

Which of the following represents the order from the least assurance to the most assurance provided for the types of services provided?

Accepted Answer

A)  Review, compilation, audit. 
B)  Compilation, review, audit. 
C)  Audit, review, compilation. 
D)  Audit, compilation, review. 
A)  Review, compilation, audit. 
B)  Compilation, review, audit. 
C)  Audit, review, compilation. 
D)  Audit, compilation, review.

Question 18

Which of the following should be included in an accountant's standard report based upon the review of a nonpublic entity's financial statements?

Accepted Answer

A)  A statement that the review was performed in accordance with generally accepted review standards. 
B)  A statement that a review consists principally of inquiries and analytical procedures. 
C)  A statement that the accountant is independent with respect to the entity. 
D)  A statement that a review is substantially greater in scope than a compilation. 
A)  A statement that the review was performed in accordance with generally accepted review standards. 
B)  A statement that a review consists principally of inquiries and analytical procedures. 
C)  A statement that the accountant is independent with respect to the entity. 
D)  A statement that a review is substantially greater in scope than a compilation.

Question 19

When an accountant compiles a nonpublic entity's financial statements that omit substantially all disclosures required by generally accepted accounting principles,the accountant should indicate in the compilation report that the financial statements are

Accepted Answer

A)  Restricted for internal use only by the entity's management. 
B)  Not to be given to financial institutions for the purpose of obtaining credit. 
C)  Compiled in conformity with a comprehensive basis of accounting other than generally accepted accounting principles. 
D)  Not designed for those who are uninformed about the omitted disclosures. 
A)  Restricted for internal use only by the entity's management. 
B)  Not to be given to financial institutions for the purpose of obtaining credit. 
C)  Compiled in conformity with a comprehensive basis of accounting other than generally accepted accounting principles. 
D)  Not designed for those who are uninformed about the omitted disclosures.

Question 20

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

Accepted Answer

A)  Assisting in adjusting the books of account for a partnership. 
B)  Examining prospective financial statements. 
C)  Processing financial data for clients of other accounting firms. 
D)  Compiling an individual's personal financial statement to be used to obtain a mortgage. 
A)  Assisting in adjusting the books of account for a partnership. 
B)  Examining prospective financial statements. 
C)  Processing financial data for clients of other accounting firms. 
D)  Compiling an individual's personal financial statement to be used to obtain a mortgage.

Explain each of the three PrimePlus Services typically offered by practitioners.

During a review of the financial statements of a nonpublic entity,the CPA finds that the financial statements contain a material departure from generally accepted accounting principles.If management refuses to correct the problem,the CPA should

The public has turned to CPAs to provide assurance services primarily because

In a review engagement,the accountant must make all of the following inquiries except those to:

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Independence is one of the general standards for attestation engagements.

Prospective financial statements may be prepared for

Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on an entity's internal control over financial reporting?

An entity's WebTrust seal is managed by

Direct services offered under PrimePlus include all of the following except:

Given one or more hypothetical assumptions,a responsible party may prepare,to the best of his knowledge and belief,an entity's expected financial position,results of operations,and changes in cash flows.Such prospective financial statements are known as

For a practitioner to examine management's assertions about the effectiveness of internal controls,all of the following conditions are necessary except:

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

Management and the external auditor are responsible for the effectiveness of the entity's internal control.

An accountant's report expressing an opinion on an entity's internal controls should state that

Which of the following represents the order from the least assurance to the most assurance provided for the types of services provided?

Which of the following should be included in an accountant's standard report based upon the review of a nonpublic entity's financial statements?

When an accountant compiles a nonpublic entity's financial statements that omit substantially all disclosures required by generally accepted accounting principles,the accountant should indicate in the compilation report that the financial statements are

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Filters

Exam 21: Assurance,Attestation,and Internal Auditing Services

Explain each of the three PrimePlus Services typically offered by practitioners.

During a review of the financial statements of a nonpublic entity,the CPA finds that the financial statements contain a material departure from generally accepted accounting principles.If management refuses to correct the problem,the CPA should

The public has turned to CPAs to provide assurance services primarily because

In a review engagement,the accountant must make all of the following inquiries except those to:

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Independence is one of the general standards for attestation engagements.

Prospective financial statements may be prepared for

Which of the following conditions is necessary for a practitioner to accept an attest engagement to examine and report on an entity's internal control over financial reporting?

An entity's WebTrust seal is managed by

Direct services offered under PrimePlus include all of the following except:

Given one or more hypothetical assumptions,a responsible party may prepare,to the best of his knowledge and belief,an entity's expected financial position,results of operations,and changes in cash flows.Such prospective financial statements are known as

For a practitioner to examine management's assertions about the effectiveness of internal controls,all of the following conditions are necessary except:

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

Management and the external auditor are responsible for the effectiveness of the entity's internal control.

An accountant's report expressing an opinion on an entity's internal controls should state that

Which of the following represents the order from the least assurance to the most assurance provided for the types of services provided?

Which of the following should be included in an accountant's standard report based upon the review of a nonpublic entity's financial statements?

When an accountant compiles a nonpublic entity's financial statements that omit substantially all disclosures required by generally accepted accounting principles,the accountant should indicate in the compilation report that the financial statements are

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

Filters