Question 1

The review of interim financial information should ideally take place ________.

Accepted Answer

A) at or near year-end 
B) just after the cutoff date 
C) at or near the date of the interim information 
D) six months into the fiscal year 
A) at or near year-end 
B) just after the cutoff date 
C) at or near the date of the interim information 
D) six months into the fiscal year C

Question 2

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

Accepted Answer

A) adverse opinion 
B) qualified opinion for a GAAP departure 
C) clean opinion 
D) clean opinion with an emphasis of matter paragraph 
A) adverse opinion 
B) qualified opinion for a GAAP departure 
C) clean opinion 
D) clean opinion with an emphasis of matter paragraph D

Question 3

Review engagements provide a moderate level of assurance.

Accepted Answer

A) True 
 B)False  True

Question 4

George Wilson CA is on the board of directors of a small manufacturing company,Smith Plastics,Inc.The president of the company,John Smith,has asked George to prepare financial statements for the company to be submitted to Vancouver Dominion Bank as part of a loan request.Mr.Smith tells George that the bank would like a review or an audit,but would settle for a compilation from a CA.He would like George to do the compilation.
Required:
Under what conditions,if any,would George Wilson be allowed to compile the financial statements of Smith Plastics,Inc.?

Accepted Answer

George Wilson is not independent of Smit

Question 5

According to the Guidance on Criteria of Control (COCO),control is effected by ________.

Accepted Answer

A) senior management 
B) the board of directors 
C) people throughout the organization 
D) the audit committee 
A) senior management 
B) the board of directors 
C) people throughout the organization 
D) the audit committee

Question 6

Accounting principles require that interim financial statements be prepared.

Accepted Answer

A) True 
 B)False

Question 7

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

Accepted Answer

A) True 
 B)False

Question 8

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

Accepted Answer

A) True 
 B)False

Question 9

When compiling the financial statements of a private company,an accountant should ________.

Accepted Answer

A) review agreements with financial institutions for restrictions on cash balances 
B) study and understand the client's business 
C) enquire of key personnel concerning related parties and subsequent events 
D) perform ratio analyses of the financial data of comparable prior periods 
A) review agreements with financial institutions for restrictions on cash balances 
B) study and understand the client's business 
C) enquire of key personnel concerning related parties and subsequent events 
D) perform ratio analyses of the financial data of comparable prior periods

Question 10

Financial statements must be presented fairly as a result of a compilation engagement.

Accepted Answer

A) True 
 B)False

Question 11

CA is a minority shareholder in ABC Co. ,and has just completed a compilation engagement for the company.The Notice to Reader should ________.

Accepted Answer

A) disclaim an opinion 
B) provide negative assurance 
C) include a statement that CA is not objective 
D) not be issued,since CA is not objective 
A) disclaim an opinion 
B) provide negative assurance 
C) include a statement that CA is not objective 
D) not be issued,since CA is not objective

Question 12

Snow,CA,was engaged by Master Limited to examine and report on management's written assertion about the effectiveness of Master's internal control system over financial reporting.Snow's report should state that ________.

Accepted Answer

A) because of the inherent limitations in any system of internal control,errors or irregularities may occur and not be detected. 
B) management's assertion is based on criteria established by the Canadian Institute of Chartered Accountants. 
C) the results of Snow's tests will form the basis for Snow's opinion on the fairness of Master's financial statements in conformity with GAAP. 
D) the purpose of the engagement is to enable Snow to plan an audit and determine the nature,timing,and extent of tests to be performed. 
A) because of the inherent limitations in any system of internal control,errors or irregularities may occur and not be detected. 
B) management's assertion is based on criteria established by the Canadian Institute of Chartered Accountants. 
C) the results of Snow's tests will form the basis for Snow's opinion on the fairness of Master's financial statements in conformity with GAAP. 
D) the purpose of the engagement is to enable Snow to plan an audit and determine the nature,timing,and extent of tests to be performed.

Question 13

What does the extent of review procedures of interim financial information depend on?

Accepted Answer

The extent of these procedures depends o

Question 14

Review engagements involve both substantive and compliance testing.

Accepted Answer

A) True 
 B)False

Question 15

The level of assurance provided by a review engagement can best be described as ________.

Accepted Answer

A) comparable to that of an audit 
B) moderate 
C) high 
D) nonexistent 
A) comparable to that of an audit 
B) moderate 
C) high 
D) nonexistent

Question 16

In providing guidance to accountants,which ranks highest?

Accepted Answer

A) Research study. 
B) Criteria of Control guidance. 
C) Handbook Recommendation. 
D) Handbook Guideline. 
A) Research study. 
B) Criteria of Control guidance. 
C) Handbook Recommendation. 
D) Handbook Guideline.

Question 17

An accountant's review engagement report would NOT include a statement that ________.

Accepted Answer

A) the engagement was performed in accordance with generally accepted auditing standards (GAAS) 
B) an accountant reviews information supplied by the company 
C) a review does not constitute an audit and an audit opinion is not expressed on the financial statements 
D) the accountant is not aware of any material departure from generally accepted accounting standards (GAAP) 
A) the engagement was performed in accordance with generally accepted auditing standards (GAAS) 
B) an accountant reviews information supplied by the company 
C) a review does not constitute an audit and an audit opinion is not expressed on the financial statements 
D) the accountant is not aware of any material departure from generally accepted accounting standards (GAAP)

Question 18

What is meant by "audit of internal control over financial reporting?"

Accepted Answer

This refers to the direct reporting audi

Question 19

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

Accepted Answer

A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
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 system. 
A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
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 system.

Question 20

In a compilation engagement,the accountant performs no audit procedures.

Accepted Answer

A) True 
 B)False

The review of interim financial information should ideally take place ________.

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

Review engagements provide a moderate level of assurance.

According to the Guidance on Criteria of Control (COCO),control is effected by ________.

Accounting principles require that interim financial statements be prepared.

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

When compiling the financial statements of a private company,an accountant should ________.

Financial statements must be presented fairly as a result of a compilation engagement.

CA is a minority shareholder in ABC Co. ,and has just completed a compilation engagement for the company.The Notice to Reader should ________.

Snow,CA,was engaged by Master Limited to examine and report on management's written assertion about the effectiveness of Master's internal control system over financial reporting.Snow's report should state that ________.

What does the extent of review procedures of interim financial information depend on?

Review engagements involve both substantive and compliance testing.

The level of assurance provided by a review engagement can best be described as ________.

In providing guidance to accountants,which ranks highest?

An accountant's review engagement report would NOT include a statement that ________.

What is meant by "audit of internal control over financial reporting?"

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

In a compilation engagement,the accountant performs no audit procedures.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters

Exam 17: Other Public Accounting Services and Reportsreviews and Compilations

The review of interim financial information should ideally take place ________.

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

Review engagements provide a moderate level of assurance.

According to the Guidance on Criteria of Control (COCO),control is effected by ________.

Accounting principles require that interim financial statements be prepared.

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

When compiling the financial statements of a private company,an accountant should ________.

Financial statements must be presented fairly as a result of a compilation engagement.

CA is a minority shareholder in ABC Co. ,and has just completed a compilation engagement for the company.The Notice to Reader should ________.

Snow,CA,was engaged by Master Limited to examine and report on management's written assertion about the effectiveness of Master's internal control system over financial reporting.Snow's report should state that ________.

What does the extent of review procedures of interim financial information depend on?

Review engagements involve both substantive and compliance testing.

The level of assurance provided by a review engagement can best be described as ________.

In providing guidance to accountants,which ranks highest?

An accountant's review engagement report would NOT include a statement that ________.

What is meant by "audit of internal control over financial reporting?"

Which of the following best describes a CA's engagement to report on an entity's internal controls over financial reporting?

In a compilation engagement,the accountant performs no audit procedures.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

hapter 15 Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue the Audit Report

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud Auditing

Filters