Question 1

An accountant's standard report on a compilation of a projection should not include

Accepted Answer

A)  a statement that he or she does not express an opinion on the statements or assumptions. 
B)  a statement that a compilation of a projection is limited in scope. 
C)  a disclaimer of responsibility to update the report for events occurring after the report's date. 
D)  a statement that the accountant expresses only limited assurance that the results may be achieved. 
A)  a statement that he or she does not express an opinion on the statements or assumptions. 
B)  a statement that a compilation of a projection is limited in scope. 
C)  a disclaimer of responsibility to update the report for events occurring after the report's date. 
D)  a statement that the accountant expresses only limited assurance that the results may be achieved.

Question 2

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

Accepted Answer

A)  perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable. 
B)  complete the preliminary phase of the study and evaluation of the entity's internal control. 
C)  verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation. 
D)  acquire a knowledge of any specialized accounting principles and practices used in the entity's industry. 
A)  perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable. 
B)  complete the preliminary phase of the study and evaluation of the entity's internal control. 
C)  verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation. 
D)  acquire a knowledge of any specialized accounting principles and practices used in the entity's industry.

Question 3

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 4

Which of the following should not be included in an accountant's standard report based upon the compilation of an entity's financial statements?

Accepted Answer

A)  A statement that a compilation is limited to presenting, in the form of financial statements, information that is the representation of management. 
B)  A statement that the compilation was performed in accordance with standards established by the American Institute of CPAs. 
C)  A statement that the accountant has not audited or reviewed the financial statements. 
D)  A statement that the accountant does not express an opinion but expresses only limited assurance on the financial statements. 
A)  A statement that a compilation is limited to presenting, in the form of financial statements, information that is the representation of management. 
B)  A statement that the compilation was performed in accordance with standards established by the American Institute of CPAs. 
C)  A statement that the accountant has not audited or reviewed the financial statements. 
D)  A statement that the accountant does not express an opinion but expresses only limited assurance on the financial statements.

Question 5

Accepting an engagement to compile a financial projection for a public company most likely would be inappropriate if the projection were to be distributed to

Accepted Answer

A)  a bank with which the entity is negotiating for a loan. 
B)  a labor union with which the entity is negotiating a contract. 
C)  the principal stockholder, to the exclusion of the other stockholders. 
D)  all stockholders of record as of the report date. 
A)  a bank with which the entity is negotiating for a loan. 
B)  a labor union with which the entity is negotiating a contract. 
C)  the principal stockholder, to the exclusion of the other stockholders. 
D)  all stockholders of record as of the report date.

Question 6

Which set of standards was created by the AICPA to cover services relating to unaudited financial statements?

Accepted Answer

A)  Standards on Selective Audits and Review Services (SSARS). 
B)  Statement on Auditing Standards (SAS). 
C)  Statements on Compilation and Review Standards (SCRS). 
D)  Statements on Standards for Accounting and Review Services (SSARS). 
A)  Standards on Selective Audits and Review Services (SSARS). 
B)  Statement on Auditing Standards (SAS). 
C)  Statements on Compilation and Review Standards (SCRS). 
D)  Statements on Standards for Accounting and Review Services (SSARS).

Question 7

Absolute assurance is provided in

Accepted Answer

A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed. 
A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed.

Question 8

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

Accepted Answer

The first service typically offered is c

Question 9

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

Accepted Answer

A)  perform a review. 
B)  perform a compilation. 
C)  perform an examination. 
D)  apply agreed-upon procedures. 
A)  perform a review. 
B)  perform a compilation. 
C)  perform an examination. 
D)  apply agreed-upon procedures.

Question 10

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

Accepted Answer

A)  a third-party lending institution. 
B)  the entity's management. 
C)  the reporting accountant. 
D)  the entity's independent auditor. 
A)  a third-party lending institution. 
B)  the entity's management. 
C)  the reporting accountant. 
D)  the entity's independent auditor.

Question 11

The International Professional Practices Framework developed by the IIA includes all of the following types of guidance,except:

Accepted Answer

A)  Standards. 
B)  Interpretations of Standards. 
C)  Practice advisories. 
D)  Practice guides. 
A)  Standards. 
B)  Interpretations of Standards. 
C)  Practice advisories. 
D)  Practice guides.

Question 12

Which of the following would be considered a part of a consulting services (non-assurance)engagement? I.Expressing a conclusion about the reliability of an entity's financial statements.
II)Reviewing and commenting on a client-prepared business plan.

Accepted Answer

A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II. 
A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II.

Question 13

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1)examination or (2)review.

Accepted Answer

A) True 
 B)False

Question 14

Internal auditors fall into two primary categories-assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

Accepted Answer

a.Assurance services involve the interna

Question 15

Before issuing a report on the compilation of financial statements of a nonpublic entity,the accountant should

Accepted Answer

A)  apply analytical procedures to selected financial data to discover any material misstatements. 
B)  corroborate at least a sample of the assertions management has embodied in the financial statements. 
C)  inquire of the entity's personnel whether the financial statements omit substantially all disclosures. 
D)  read the financial statements to consider whether the financial statements are free from obvious material errors. 
A)  apply analytical procedures to selected financial data to discover any material misstatements. 
B)  corroborate at least a sample of the assertions management has embodied in the financial statements. 
C)  inquire of the entity's personnel whether the financial statements omit substantially all disclosures. 
D)  read the financial statements to consider whether the financial statements are free from obvious material errors.

Question 16

As with most professionals,internal auditors must follow guidelines promoting ethical conduct.The IIA Code of Ethics is important for internal auditors because the reliability of their work depends on a reputation for a high level of personal integrity.The Code of Ethics consists of four main principles of ethical conduct and some associated rules that underpin the expected conduct of IIA members.List the four main principles of the Code of Ethics and explain each.

Accepted Answer

Integrity-The integrity of internal audi

Question 17

Which of the following would an accountant not need to know when conducting a compilation?

Accepted Answer

A)  The accounting principles and practices of the industry in which the entity operates. 
B)  A general understanding of the nature of the entity's business transactions and the form of its accounting records. 
C)  The accounting basis on which the financial statements are to be presented. 
D)  The accountant would need to know all of the other items listed when conducting a compilation. 
A)  The accounting principles and practices of the industry in which the entity operates. 
B)  A general understanding of the nature of the entity's business transactions and the form of its accounting records. 
C)  The accounting basis on which the financial statements are to be presented. 
D)  The accountant would need to know all of the other items listed when conducting a compilation.

Question 18

IIA Standards include

Accepted Answer

A)  practice advisories. 
B)  code of Ethics. 
C)  interpretations. 
D)  both practice advisories and the Code of Ethics. 
A)  practice advisories. 
B)  code of Ethics. 
C)  interpretations. 
D)  both practice advisories and the Code of Ethics.

Question 19

An entity engaged a CPA to determine whether the entity's websites meet defined criteria for standard business practices and controls over transaction integrity and information protection.In performing this engagement,the CPA should comply with the provisions of

Accepted Answer

A)  Statements on Assurance Standards. 
B)  Statements on Standards for Attestation Engagements. 
C)  Statements on Standards for Management Consulting Services. 
D)  Statements on Auditing Standards. 
A)  Statements on Assurance Standards. 
B)  Statements on Standards for Attestation Engagements. 
C)  Statements on Standards for Management Consulting Services. 
D)  Statements on Auditing Standards.

Question 20

Statements on Standards for Accounting and Review Services (SSARS)require an accountant to report when the accountant has

Accepted Answer

A)  typed client-prepared financial statements, without modification, as an accommodation to the client. 
B)  provided an entity with a financial statement format that does not include dollar amounts, to be used by the entity in preparing financial statements. 
C)  proposed correcting journal entries to be recorded by the client that change client-prepared financial statements. 
D)  generated, through the use of computer software, financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP. 
A)  typed client-prepared financial statements, without modification, as an accommodation to the client. 
B)  provided an entity with a financial statement format that does not include dollar amounts, to be used by the entity in preparing financial statements. 
C)  proposed correcting journal entries to be recorded by the client that change client-prepared financial statements. 
D)  generated, through the use of computer software, financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP.

An accountant's standard report on a compilation of a projection should not include

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

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 not be included in an accountant's standard report based upon the compilation of an entity's financial statements?

Accepting an engagement to compile a financial projection for a public company most likely would be inappropriate if the projection were to be distributed to

Which set of standards was created by the AICPA to cover services relating to unaudited financial statements?

Absolute assurance is provided in

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

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

The International Professional Practices Framework developed by the IIA includes all of the following types of guidance,except:

Which of the following would be considered a part of a consulting services (non-assurance)engagement? I.Expressing a conclusion about the reliability of an entity's financial statements. II)Reviewing and commenting on a client-prepared business plan.

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1)examination or (2)review.

Internal auditors fall into two primary categories-assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

Before issuing a report on the compilation of financial statements of a nonpublic entity,the accountant should

Which of the following would an accountant not need to know when conducting a compilation?

IIA Standards include

An entity engaged a CPA to determine whether the entity's websites meet defined criteria for standard business practices and controls over transaction integrity and information protection.In performing this engagement,the CPA should comply with the provisions of

Statements on Standards for Accounting and Review Services (SSARS)require an accountant to report when the accountant has

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

Auditing the Inventory Management Process

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

Professsional Conduct,Independence,and Quality Control

Legal Liability

Filters

Exam 21: Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

An accountant's standard report on a compilation of a projection should not include

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

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 not be included in an accountant's standard report based upon the compilation of an entity's financial statements?

Accepting an engagement to compile a financial projection for a public company most likely would be inappropriate if the projection were to be distributed to

Which set of standards was created by the AICPA to cover services relating to unaudited financial statements?

Absolute assurance is provided in

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

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

The International Professional Practices Framework developed by the IIA includes all of the following types of guidance,except:

Which of the following would be considered a part of a consulting services (non-assurance)engagement? I.Expressing a conclusion about the reliability of an entity's financial statements. II)Reviewing and commenting on a client-prepared business plan.

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1)examination or (2)review.

Internal auditors fall into two primary categories-assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

Before issuing a report on the compilation of financial statements of a nonpublic entity,the accountant should

Which of the following would an accountant not need to know when conducting a compilation?

IIA Standards include

An entity engaged a CPA to determine whether the entity's websites meet defined criteria for standard business practices and controls over transaction integrity and information protection.In performing this engagement,the CPA should comply with the provisions of

Statements on Standards for Accounting and Review Services (SSARS)require an accountant to report when the accountant has

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

Auditing the Inventory Management Process

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

Professsional Conduct,Independence,and Quality Control

Legal Liability

Filters