Question 1

Which of the following is correct relating to an engagement to apply agreed-upon procedures to prospective financial statements?

Accepted Answer

A) Use of the report is restricted to the specified users. 
B) Such engagements are permissible for forecasts but not for projections. 
C) Responsibility for the adequacy of the procedures performed is taken by the practitioner. 
D) Such engagements are not permissible under the professional standards. 
A) Use of the report is restricted to the specified users. 
B) Such engagements are permissible for forecasts but not for projections. 
C) Responsibility for the adequacy of the procedures performed is taken by the practitioner. 
D) Such engagements are not permissible under the professional standards. A

Question 2

A practitioner's unqualified (unmodified)opinion based upon an examination may ordinarily be on:  
$\begin{array} { c c c } 
&\quad\text {Suitable Criteria }&\text { Assertion  }\\end{array}$ 
A. $\begin{array} { c c c }  \quad\quad\quad\text { Yes } &\quad\quad\quad\quad \text { Yes } \\end{array}$ 
B.  $\begin{array} { c c c }\quad\quad\quad \text { Yes } &\quad\quad\quad\quad \text {  No } \\end{array}$
C.  $\begin{array} { c c c } \quad\quad\quad\text {  No } & \quad\quad\quad\quad\text {Yes } \\end{array}$
D.  $\begin{array} { c c c }\quad\quad\quad \text { No } &\quad\quad\quad\quad \text {  No }
\end{array}$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D A

Question 3

Independence is required for the performance for some,but not all assurance services.

Accepted Answer

A) True 
 B)False  False

Question 4

A CPA is engaged to perform an engagement of a nonpublic company following attestation standards.During the examination,the CPA discovers a material deviation from the criteria on which the subject matter was being evaluated.The CPA's conclusion may be on:  
$\begin{array} { c c c } 
& \text { Subject Matter } & \text { Written Assertion } \\end{array}$
A. $\begin{array} { c c c }  \quad\quad\quad\text { Yes } &\quad\quad\quad\quad \text { Yes } \\end{array}$ 
B.  $\begin{array} { c c c }\quad\quad\quad \text { Yes } &\quad\quad\quad\quad \text {  No } \\end{array}$
C.  $\begin{array} { c c c } \quad\quad\quad\text {  No } & \quad\quad\quad\quad\text {Yes } \\end{array}$
D.   $\begin{array} { c c c }\quad\quad\quad \text { No } &\quad\quad\quad\quad \text {  No }
\end{array}$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 5

Attestation services are similar,but go beyond assurance services in scope of procedures and reporting.

Accepted Answer

A) True 
 B)False

Question 6

Providing assurance using a series of reports provided simultaneously or shortly after the related information is released is referred to as:

Accepted Answer

A) Continuous auditing. 
B) Serial auditing. 
C) Systems reliability auditing. 
D) Simultaneity auditing. 
A) Continuous auditing. 
B) Serial auditing. 
C) Systems reliability auditing. 
D) Simultaneity auditing.

Question 7

To accept an engagement to examine a client's MD&A for annual financial statements,the practitioners ordinarily must have:

Accepted Answer

A) Audited the most recent financial statement period to which the MD&A applies. 
B) Determined that the client reports to the Securities and Exchange Commission. 
C) Performed a detailed analysis of the client's controls over decision making. 
D) Reviewed the quarterly MD&A information. 
A) Audited the most recent financial statement period to which the MD&A applies. 
B) Determined that the client reports to the Securities and Exchange Commission. 
C) Performed a detailed analysis of the client's controls over decision making. 
D) Reviewed the quarterly MD&A information.

Question 8

Reviews of management's discussion and analysis for an annual or an interim period are not allowed by the AICPA.

Accepted Answer

A) True 
 B)False

Question 9

Trust Services engagements include gathering evidence that the client's system is operating effectively.

Accepted Answer

A) True 
 B)False

Question 10

Given one or more hypothetical assumptions,a responsible party may prepare an entity's expected financial position,results of operations,and changes in financial position.Such prospective financial statements are known as:

Accepted Answer

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

Question 11

Which of the following engagements is most likely to consider security,availability,processing integrity,confidentiality,and privacy relating to a system?

Accepted Answer

A) Internal control over financial reporting. 
B) Trust Services. 
C) Website Associate. 
D) Financial statement audit. 
A) Internal control over financial reporting. 
B) Trust Services. 
C) Website Associate. 
D) Financial statement audit.

Question 12

Which of the following is correct relating to service organization control (SOC)reports referred to as "SOC 2" reports?

Accepted Answer

A) They are primarily to assist financial statement auditors when processing services have been outsourced to a service provider. 
B) They are generally available to anyone. 
C) They relate most directly to internal control over financial reporting. 
D) They are meant for management of service organizations,user entities,and certain other specified entities. 
A) They are primarily to assist financial statement auditors when processing services have been outsourced to a service provider. 
B) They are generally available to anyone. 
C) They relate most directly to internal control over financial reporting. 
D) They are meant for management of service organizations,user entities,and certain other specified entities.

Question 13

Which of the following is least likely to be structured using the AICPA attestation standards?

Accepted Answer

A) A review of nonpublic interim information. 
B) A SysTrust engagement. 
C) A "SOC 3" service organization controls engagement. 
D) A review of management's discussion and analysis. 
A) A review of nonpublic interim information. 
B) A SysTrust engagement. 
C) A "SOC 3" service organization controls engagement. 
D) A review of management's discussion and analysis.

Question 14

When performing an attestation examination engagement,the standards do not require which of the following?

Accepted Answer

A) Assertion. 
B) Practitioner independence. 
C) Subject matter. 
D) Suitable criteria. 
A) Assertion. 
B) Practitioner independence. 
C) Subject matter. 
D) Suitable criteria.

Question 15

When an accountant compiles a financial forecast,the accountant's report should include a(n):

Accepted Answer

A) Explanation of the differences between a financial forecast and a financial projection. 
B) Caveat that the prospective results of the financial forecast may not be achieved. 
C) Statement that the accountant's responsibility to update the report is limited to one year. 
D) Disclaimer of opinion on the reliability of the entity's internal controls. 
A) Explanation of the differences between a financial forecast and a financial projection. 
B) Caveat that the prospective results of the financial forecast may not be achieved. 
C) Statement that the accountant's responsibility to update the report is limited to one year. 
D) Disclaimer of opinion on the reliability of the entity's internal controls.

Question 16

Which of the following is the least likely to be considered subject matter of an attestation engagement?

Accepted Answer

A) Affirmation. 
B) Behavior. 
C) Historical event. 
D) Systems and processes. 
A) Affirmation. 
B) Behavior. 
C) Historical event. 
D) Systems and processes.

Question 17

Accepting an engagement to examine an entity's financial projections most likely would be appropriate if the projections were to be distributed to:

Accepted Answer

A) All employees who work for the entity. 
B) Potential stockholders who request a prospectus or a registration statement. 
C) A bank with which the entity is negotiating for a loan. 
D) All stockholders of record as of the report date. 
A) All employees who work for the entity. 
B) Potential stockholders who request a prospectus or a registration statement. 
C) A bank with which the entity is negotiating for a loan. 
D) All stockholders of record as of the report date.

Question 18

Which of the following are Trust Services principles?  
$$\begin{array} { c c c } 
& \text { Availability } & \text { Processing Integrity } \
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes }
\end{array}$$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 19

Which of the following are Trust Services principles?  
$$\begin{array} { c c c } 
& \text { Security } & \text { Availability } \
\text { A } & \text { Yes } & \text { Yes } \
\text { B. } & \text { Yes } & \text { No } \
\text { C. } & \text { No } & \text { Yes } \
\text { D. } & \text { No } & \text { No }
\end{array}$$

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Question 20

The attestation standards prohibit the examination of prospective financial statements.

Accepted Answer

A) True 
 B)False

Which of the following is correct relating to an engagement to apply agreed-upon procedures to prospective financial statements?

A practitioner's unqualified (unmodified)opinion based upon an examination may ordinarily be on: Suitable Criteria Assertion A. Yes Yes B. Yes No C. No Yes D. No No

Independence is required for the performance for some,but not all assurance services.

Attestation services are similar,but go beyond assurance services in scope of procedures and reporting.

Providing assurance using a series of reports provided simultaneously or shortly after the related information is released is referred to as:

To accept an engagement to examine a client's MD&A for annual financial statements,the practitioners ordinarily must have:

Reviews of management's discussion and analysis for an annual or an interim period are not allowed by the AICPA.

Trust Services engagements include gathering evidence that the client's system is operating effectively.

Given one or more hypothetical assumptions,a responsible party may prepare an entity's expected financial position,results of operations,and changes in financial position.Such prospective financial statements are known as:

Which of the following engagements is most likely to consider security,availability,processing integrity,confidentiality,and privacy relating to a system?

Which of the following is correct relating to service organization control (SOC)reports referred to as "SOC 2" reports?

Which of the following is least likely to be structured using the AICPA attestation standards?

When performing an attestation examination engagement,the standards do not require which of the following?

When an accountant compiles a financial forecast,the accountant's report should include a(n):

Which of the following is the least likely to be considered subject matter of an attestation engagement?

Accepting an engagement to examine an entity's financial projections most likely would be appropriate if the projections were to be distributed to:

Which of the following are Trust Services principles? Availability Processing Integrity A Yes Yes B. Yes No C. No Yes

Which of the following are Trust Services principles? Security Availability A Yes Yes B. Yes No C. No Yes D. No No

The attestation standards prohibit the examination of prospective financial statements.

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Accounts Receivable, notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property,plant,and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Reports

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Internal, operational, and Compliance Auditing

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Exam 20: Additional Assurance Services: Other Information

Which of the following is correct relating to an engagement to apply agreed-upon procedures to prospective financial statements?

A practitioner's unqualified (unmodified)opinion based upon an examination may ordinarily be on: Suitable Criteria Assertion A. Yes Yes B. Yes No C. No Yes D. No No

Independence is required for the performance for some,but not all assurance services.

Attestation services are similar,but go beyond assurance services in scope of procedures and reporting.

Providing assurance using a series of reports provided simultaneously or shortly after the related information is released is referred to as:

To accept an engagement to examine a client's MD&A for annual financial statements,the practitioners ordinarily must have:

Reviews of management's discussion and analysis for an annual or an interim period are not allowed by the AICPA.

Trust Services engagements include gathering evidence that the client's system is operating effectively.

Given one or more hypothetical assumptions,a responsible party may prepare an entity's expected financial position,results of operations,and changes in financial position.Such prospective financial statements are known as:

Which of the following engagements is most likely to consider security,availability,processing integrity,confidentiality,and privacy relating to a system?

Which of the following is correct relating to service organization control (SOC)reports referred to as "SOC 2" reports?

Which of the following is least likely to be structured using the AICPA attestation standards?

When performing an attestation examination engagement,the standards do not require which of the following?

When an accountant compiles a financial forecast,the accountant's report should include a(n):

Which of the following is the least likely to be considered subject matter of an attestation engagement?

Accepting an engagement to examine an entity's financial projections most likely would be appropriate if the projections were to be distributed to:

Which of the following are Trust Services principles? Availability Processing Integrity A Yes Yes B. Yes No C. No Yes

Which of the following are Trust Services principles? Security Availability A Yes Yes B. Yes No C. No Yes D. No No

The attestation standards prohibit the examination of prospective financial statements.

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Audit Planning, understanding the Client, assessing Risks, and Responding

Internal Control

Consideration of Internal Control in an Information Technology Environment

Audit Sampling

Cash and Financial Investments

Accounts Receivable, notes Receivable, and Revenue

Inventories and Cost of Goods Sold

Property,plant,and Equipment: Depreciation and Depletion

Accounts Payable and Other Liabilities

Debt and Equity Capital

Auditing Operations and Completing the Audit

Auditors Reports

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Internal, operational, and Compliance Auditing

Filters