Question 1

A compilation report cannot be issued by an accountant who is not independent.

Accepted Answer

A) True 
 B)False

Question 2

An accountant associated with personal financial statements would need to give the standard compilation report disclaimer.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following conditions must be met before an accountant can conduct an examination of an entity's internal control?

Accepted Answer

A)   Management presents its assertion about the effectiveness of its internal control in a written report.
B)   Management represents that there are no internal control deficiencies.
C)   The accountant represents that he or she has not conducted an audit of the financial statements.
D)   The accountant has designed a significant portion of the internal controls.

Question 4

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonpublic entity?

Accepted Answer

A)   Communicate reportable conditions discovered during the assessment of control risk.
B)   Obtain a client representation letter from members of management.
C)   Send bank confirmation letters to the entity's financial institutions.
D)   Examine cash disbursements in the subsequent period for unrecorded liabilities.

Question 5

A report on sustainability as defined by the AICPA might include all of the following except

Accepted Answer

A)   Economic viability.
B)   Social responsibility.
C)   Environmental responsibility.
D)   Internal control over financial reporting.

Question 6

This question is related to other public accounting services and reports.For each statement,description,or phrase (1-5),indicate the related type of engagement or report (A-F).
A.Reports on elements,accounts,or items of a financial statement
B.Reports on compliance with contractual agreements or regulatory requirements
C.Reports on the agreed-upon procedures
D.Reports on internal control
E.Reviews of unaudited financial statements of a nonissuer
F.Compilations of financial statements
____ 1.Management issues a separate report containing assertions.
____ 2."In our opinion,the schedule of inventory referred to above presents fairly,in all material respects
____ 3.They are substantially less in scope than an audit in accordance with generally accepted auditing standards.
____ 4.They are examinations or agreed-upon procedures about conforming to the rules and regulations of a regulatory agency.
____ 5.The reports identify specific users and describe the procedures specified by the users in detail.

Accepted Answer

The answer of This question is related to other public...

Question 7

During a review engagement,which of the following is not a required inquiry of management?

Accepted Answer

A)   The accounting principles and practices used.
B)   Significant transactions occurring near the end of the reporting period.
C)   Status of uncorrected misstatements identified in previous engagements.
D)   The changes made to internal controls during the period under review.

Question 8

An accountant's review of unaudited financial statements would not include

Accepted Answer

A)   Performing analytical procedures.
B)   Confirming accounts receivable.
C)   Inquiring about the accounting system and bookkeeping procedures.
D)   Reading the financial statements for indications that they conform to GAAP.

Question 9

Which of the following is a general standard of generally accepted attestation standards but is not a fundamental auditing principle?

Accepted Answer

A)   Appropriate competence and capability.
B)   Adequate knowledge in the subject matter.
C)   Independence.
D)   Due care.

Question 10

Auditors can gain sufficient understanding of the internal controls at a service organization by

Accepted Answer

A)   Reviewing the contract with the service organization.
B)   Making an inquiry with management of the service organization.
C)   Reviewing a report on internal controls provided by the service organization's auditors.
D)   Sending a confirmation concerning internal controls to the service organization's auditors.

Question 11

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-year statements have not been audited.

Question 12

Review work on unaudited financial statements consists primarily of conducting ____________________________,performing ____________________,and obtaining a management representation letter.

Accepted Answer

inquiry; a...

Question 13

The AICPA Special Committee on Assurance Services identified five global "mega trends" that can affect a CPA's business.Which of the following is not one of these mega trends?

Accepted Answer

A)   The decreasing supply of natural resources.
B)   Information technology.
C)   New social structures.
D)   Demands for transparency.

Question 14

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

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.

Question 15

In a compilation engagement,the accountant

Accepted Answer

A)   Provides reasonable assurance that no material misstatements exist.
B)   Provides assurance that no material misstatement came to her or his attention.
C)   Provides a list of procedures performed and results found.
D)   Does not express an opinion.

Question 16

In a review services engagement,an accountant performs some limited procedures to achieve a moderate level of assurance.

Accepted Answer

A) True 
 B)False

Question 17

When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles,the accountant should

Accepted Answer

A)   Assess the risk that a material misstatement could occur in a financial statement assertion.
B)   Confirm with the entity's lawyer that material loss contingencies are disclosed.
C)   Understand the accounting principles of the industry in which the entity operates.
D)   Develop audit plans to determine whether the entity's financial statements are fairly presented.

Question 18

When an accountant compiles prescribed forms,the compilation report always must call attention to GAAP departures and disclosure deficiencies.

Accepted Answer

A) True 
 B)False

Question 19

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.

Question 20

Each page of the financial statements of a review service should be marked " __________________________________."

Accepted Answer

see accoun...

Exam 13: Other Public Accounting Services

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

Correct Answer
verified

Each page of the financial statements of a review service should be marked " __________________________________."

Correct Answer
verified
see accoun...
View Answer

In a compilation engagement,the accountant

Correct Answer
verified

Auditors can gain sufficient understanding of the internal controls at a service organization by

Correct Answer
verified

Which of the following is a general standard of generally accepted attestation standards but is not a fundamental auditing principle?

Correct Answer
verified

A report on sustainability as defined by the AICPA might include all of the following except

Correct Answer
verified

An accountant associated with personal financial statements would need to give the standard compilation report disclaimer.

Correct Answer
verified

When an accountant compiles prescribed forms,the compilation report always must call attention to GAAP departures and disclosure deficiencies.

Correct Answer
verified

In a review services engagement,an accountant performs some limited procedures to achieve a moderate level of assurance.

Correct Answer
verified

An accountant's review of unaudited financial statements would not include

Correct Answer
verified

Correct Answer
verified

When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles,the accountant should

Correct Answer
verified

Which of the following conditions must be met before an accountant can conduct an examination of an entity's internal control?

Correct Answer
verified

The AICPA Special Committee on Assurance Services identified five global "mega trends" that can affect a CPA's business.Which of the following is not one of these mega trends?

Correct Answer
verified

A compilation report cannot be issued by an accountant who is not independent.

Correct Answer
verified

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonpublic entity?

Correct Answer
verified

During a review engagement,which of the following is not a required inquiry of management?

Correct Answer
verified

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

Correct Answer
verified

In an agreed-upon procedures engagement,an accountant

Correct Answer
verified

Review work on unaudited financial statements consists primarily of conducting ________,performing ,and obtaining a management representation letter.

Correct Answer
verified
inquiry; a...
View Answer

Exam 13: Other Public Accounting Services

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

Correct AnswerverifiedShow Answer

Each page of the financial statements of a review service should be marked " __________________________________."

Correct Answerverifiedsee accoun...View AnswerShow Answer

In a compilation engagement,the accountant

Correct AnswerverifiedShow Answer

Auditors can gain sufficient understanding of the internal controls at a service organization by

Correct AnswerverifiedShow Answer

Which of the following is a general standard of generally accepted attestation standards but is not a fundamental auditing principle?

Correct AnswerverifiedShow Answer

A report on sustainability as defined by the AICPA might include all of the following except

Correct AnswerverifiedShow Answer

An accountant associated with personal financial statements would need to give the standard compilation report disclaimer.

Correct AnswerverifiedShow Answer

When an accountant compiles prescribed forms,the compilation report always must call attention to GAAP departures and disclosure deficiencies.

Correct AnswerverifiedShow Answer

In a review services engagement,an accountant performs some limited procedures to achieve a moderate level of assurance.

Correct AnswerverifiedShow Answer

An accountant's review of unaudited financial statements would not include

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When providing limited assurance that the reviewed financial statements of a nonpublic entity require no material modifications to be in accordance with generally accepted accounting principles,the accountant should

Correct AnswerverifiedShow Answer

Which of the following conditions must be met before an accountant can conduct an examination of an entity's internal control?

Correct AnswerverifiedShow Answer

The AICPA Special Committee on Assurance Services identified five global "mega trends" that can affect a CPA's business.Which of the following is not one of these mega trends?

Correct AnswerverifiedShow Answer

A compilation report cannot be issued by an accountant who is not independent.

Correct AnswerverifiedShow Answer

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a nonpublic entity?

Correct AnswerverifiedShow Answer

During a review engagement,which of the following is not a required inquiry of management?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In an agreed-upon procedures engagement,an accountant

Correct AnswerverifiedShow Answer

Review work on unaudited financial statements consists primarily of conducting ____________________________,performing ____________________,and obtaining a management representation letter.

Correct Answerverifiedinquiry; a...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
see accoun...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Review work on unaudited financial statements consists primarily of conducting ________,performing ,and obtaining a management representation letter.

Correct Answer
verified
inquiry; a...
View Answer