Question 1

The phrase trust services refers to

Accepted Answer

A)  WebTrust and SysTrust Services. 
B)  XBRL and SysTrust Services. 
C)  WebTrust and XBRL Services. 
D)  All AICPA designated assurance services. 
A)  WebTrust and SysTrust Services. 
B)  XBRL and SysTrust Services. 
C)  WebTrust and XBRL Services. 
D)  All AICPA designated assurance services. A

Question 2

The official Statements on Standards for Accounting and Review Services are applicable to practice with

Accepted Answer

A)  Audited financial statements of public companies. 
B)  Unaudited financial statements of public companies. 
C)  Unaudited financial statements of nonissuers. 
D)  Audited financial statements of nonissuers. 
A)  Audited financial statements of public companies. 
B)  Unaudited financial statements of public companies. 
C)  Unaudited financial statements of nonissuers. 
D)  Audited financial statements of nonissuers. C

Question 3

The review of interim financial information _________________________ a complete assessment of internal control risk.

Accepted Answer

does require

Question 4

For a compliance engagement,three conditions must be met.Which of the following is not one of the three conditions?

Accepted Answer

A)  Management accepts responsibility for compliance. 
B)  Management's evaluation of compliance is capable of evaluation and is measured against reasonable criteria. 
C)  Sufficient evidence is available to support management's evaluation. 
D)  Management provides a report attesting to the satisfactory compliance. 
A)  Management accepts responsibility for compliance. 
B)  Management's evaluation of compliance is capable of evaluation and is measured against reasonable criteria. 
C)  Sufficient evidence is available to support management's evaluation. 
D)  Management provides a report attesting to the satisfactory compliance.

Question 5

D.Prima,CPA,was engaged to review the unaudited financial statements of Rooster Restaurants,Inc.,a nonpublic company.During her review,Prima found that Rooster had not capitalized leases as required by GAAP.The result was so material that Prima modified the standard review report to state that "the financial statements are not in conformity with GAAP."
Required:
Discuss whether Prima 's report is in accordance with professional standards.If not,what should she have done under the circumstances? Explain.

Accepted Answer

Prima's report is not in accordance with

Question 6

For each term listed below (items 1-5)select the correct term (items A-F).
A.Attestation
B.Assurance service
C.Compilation
D.Trust service
E.Review service
F.Service organization
____ 1.An engagement in which a practitioner provides limited assurance about financial information.
____ 2.A situation in which the practitioner assists in assembling financial information.
____ 3.An activity that results in a report on the subject matter or a claim about subject matter that is the responsibility of another party.
____ 4.An entity that provides a service to another company regarding the processing of transactions or information.
____ 5.Professional service aimed at improving the quality of information both financial and nonfinancial for decision makers.

Accepted Answer

The answer of For each term listed below (items 1-5)select...

Question 7

The accountant's standard report for a compilation service would not include a statement that

Accepted Answer

A)  A compilation service has been performed in accordance with standards established by the AICPA. 
B)  Financial statement information is the representation of the owners of the business. 
C)  Compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data. 
D)  Financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance. 
A)  A compilation service has been performed in accordance with standards established by the AICPA. 
B)  Financial statement information is the representation of the owners of the business. 
C)  Compilation service consists primarily of inquiries of company personnel and analytical procedures applied to financial data. 
D)  Financial statements have not been audited or reviewed and the accountant does not express an opinion or any other form of assurance.

Question 8

When interim financial information is presented in a footnote to annual financial statements,the standard audit report on the annual financial statements should

Accepted Answer

A)  Not mention the interim information unless there is an exception that the auditors need to include in the report. 
B)  Contain an audit opinion paragraph that specifically mentions the interim financial information if it is not in conformity with the GAAP. 
C)  Contain an extra paragraph that gives negative assurance on the interim information if it has been reviewed. 
D)  Contain an extra explanatory paragraph if the interim information note is labeled "Unaudited." 
A)  Not mention the interim information unless there is an exception that the auditors need to include in the report. 
B)  Contain an audit opinion paragraph that specifically mentions the interim financial information if it is not in conformity with the GAAP. 
C)  Contain an extra paragraph that gives negative assurance on the interim information if it has been reviewed. 
D)  Contain an extra explanatory paragraph if the interim information note is labeled "Unaudited."

Question 9

A review service provides a basis for expressing an opinion on financial statements.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following procedures would not be performed in a review of financial statements of a nonpublic company?

Accepted Answer

A)  Inquire about the accounting system and bookkeeping procedures. 
B)  Perform analytical procedures to identify relationships and individual items that appear to be unusual. 
C)  Obtain an attorney's letter regarding litigation and unasserted claims. 
D)  Study the financial statements for indications that they conform to generally accepted accounting principles. 
A)  Inquire about the accounting system and bookkeeping procedures. 
B)  Perform analytical procedures to identify relationships and individual items that appear to be unusual. 
C)  Obtain an attorney's letter regarding litigation and unasserted claims. 
D)  Study the financial statements for indications that they conform to generally accepted accounting principles.

Question 11

Attestation engagements include

Accepted Answer

A)  Only examinations. 
B)  Examinations and assurance services. 
C)  Examinations, reviews, and agreed-upon procedures. 
D)  Examinations, reviews, compilations, agreed-upon procedures and assurance services. 
A)  Only examinations. 
B)  Examinations and assurance services. 
C)  Examinations, reviews, and agreed-upon procedures. 
D)  Examinations, reviews, compilations, agreed-upon procedures and assurance services.

Question 12

Which of the following is not a principle of trust service engagements?

Accepted Answer

A)  Security from unauthorized use. 
B)  Availability of the system, products, or services. 
C)  Proficiency in preparing transactions. 
D)  Confidentiality of information. 
A)  Security from unauthorized use. 
B)  Availability of the system, products, or services. 
C)  Proficiency in preparing transactions. 
D)  Confidentiality of information.

Question 13

Shelly's Bank has loaned money to Pete's Auto Supply.The loan is collateralized by inventory.The loan also requires a CPA to observe Pete's count of the inventory and trace sampled items to the vendor invoices in order to determine that the value of inventory is not misstated.This service would be

Accepted Answer

A)  An assurance service engagement. 
B)  An attestation engagement. 
C)  A review engagement. 
D)  A compilation engagement. 
A)  An assurance service engagement. 
B)  An attestation engagement. 
C)  A review engagement. 
D)  A compilation engagement.

Question 14

Hamell Corporation is making a presentation to a prospective investor.The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years.Hamell believes the information will be better received if its CPA provides an attestation report on the projection.In order to provide such a report,the CPA must do all of the following except

Accepted Answer

A)  Obtain knowledge about the client's business. 
B)  Evaluate the assumptions used in preparing the projection. 
C)  Confirm expected sales with customers. 
D)  Identify key factors affecting the information. 
A)  Obtain knowledge about the client's business. 
B)  Evaluate the assumptions used in preparing the projection. 
C)  Confirm expected sales with customers. 
D)  Identify key factors affecting the information.

Question 15

The combination of prior-year/current-year order of the same or higher level of service would include a compilation followed by ____________________________,a _____________________________ followed by review,and a review followed by a ____________________________.

Accepted Answer

compilation or revie

Question 16

An accountant may report on interim information presented separately from audited financial statements.

Accepted Answer

A) True 
 B)False

Question 17

When interim financial information is presented as supplementary information accompanying audited financial statements,the auditor should refer to the information

Accepted Answer

A)  In all cases. 
B)  When it has not been labeled as "unaudited." 
C)  When it is material to the financial statement users. 
D)  When the information has been reviewed rather than audited. 
A)  In all cases. 
B)  When it has not been labeled as "unaudited." 
C)  When it is material to the financial statement users. 
D)  When the information has been reviewed rather than audited.

Question 18

Review work on unaudited financial statements consists primarily of conducting inquiries,performing analytical procedures,and obtaining a management representation letter.List the typical procedures accountants would perform on a review engagement.

Accepted Answer

The typical review procedures would incl

Question 19

The performance of an attestation engagement on prospective financial information does not require which of the following?

Accepted Answer

A)  If the basis of the prospective financial information is different than the financial statements, a reconciliation of the two must be provided. 
B)  Management must disclose all significant assumptions used in generating the prospective financial information. 
C)  Management must disclose significant accounting policies and procedures used in generating the prospective financial information. 
D)  Management must disclose the probability of obtaining the results included in the prospective financial information. 
A)  If the basis of the prospective financial information is different than the financial statements, a reconciliation of the two must be provided. 
B)  Management must disclose all significant assumptions used in generating the prospective financial information. 
C)  Management must disclose significant accounting policies and procedures used in generating the prospective financial information. 
D)  Management must disclose the probability of obtaining the results included in the prospective financial information.

Question 20

The accountant's standard report for a review service would not include a statement that

Accepted Answer

A)  A review service was performed in accordance with AICPA generally accepted auditing standards. 
B)  All information included in the representation of the management of the business. 
C)  A review consists primarily of making inquiries and performing analytical procedures. 
D)  The accountant is not aware of any material modifications that should be made to make this financial statement conform to generally accepted accounting principles. 
A)  A review service was performed in accordance with AICPA generally accepted auditing standards. 
B)  All information included in the representation of the management of the business. 
C)  A review consists primarily of making inquiries and performing analytical procedures. 
D)  The accountant is not aware of any material modifications that should be made to make this financial statement conform to generally accepted accounting principles.

The phrase trust services refers to

The official Statements on Standards for Accounting and Review Services are applicable to practice with

The review of interim financial information _________________________ a complete assessment of internal control risk.

For a compliance engagement,three conditions must be met.Which of the following is not one of the three conditions?

The accountant's standard report for a compilation service would not include a statement that

When interim financial information is presented in a footnote to annual financial statements,the standard audit report on the annual financial statements should

A review service provides a basis for expressing an opinion on financial statements.

Which of the following procedures would not be performed in a review of financial statements of a nonpublic company?

Attestation engagements include

Which of the following is not a principle of trust service engagements?

Shelly's Bank has loaned money to Pete's Auto Supply.The loan is collateralized by inventory.The loan also requires a CPA to observe Pete's count of the inventory and trace sampled items to the vendor invoices in order to determine that the value of inventory is not misstated.This service would be

The combination of prior-year/current-year order of the same or higher level of service would include a compilation followed by ______________,a _ followed by review,and a review followed by a ______________.

An accountant may report on interim information presented separately from audited financial statements.

When interim financial information is presented as supplementary information accompanying audited financial statements,the auditor should refer to the information

Review work on unaudited financial statements consists primarily of conducting inquiries,performing analytical procedures,and obtaining a management representation letter.List the typical procedures accountants would perform on a review engagement.

The performance of an attestation engagement on prospective financial information does not require which of the following?

The accountant's standard report for a review service would not include a statement that

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

Exam 13: Other Public Accounting Services

The phrase trust services refers to

The official Statements on Standards for Accounting and Review Services are applicable to practice with

The review of interim financial information _________________________ a complete assessment of internal control risk.

For a compliance engagement,three conditions must be met.Which of the following is not one of the three conditions?

The accountant's standard report for a compilation service would not include a statement that

When interim financial information is presented in a footnote to annual financial statements,the standard audit report on the annual financial statements should

A review service provides a basis for expressing an opinion on financial statements.

Which of the following procedures would not be performed in a review of financial statements of a nonpublic company?

Attestation engagements include

Which of the following is not a principle of trust service engagements?

Shelly's Bank has loaned money to Pete's Auto Supply.The loan is collateralized by inventory.The loan also requires a CPA to observe Pete's count of the inventory and trace sampled items to the vendor invoices in order to determine that the value of inventory is not misstated.This service would be

The combination of prior-year/current-year order of the same or higher level of service would include a compilation followed by ____________________________,a _____________________________ followed by review,and a review followed by a ____________________________.

An accountant may report on interim information presented separately from audited financial statements.

When interim financial information is presented as supplementary information accompanying audited financial statements,the auditor should refer to the information

Review work on unaudited financial statements consists primarily of conducting inquiries,performing analytical procedures,and obtaining a management representation letter.List the typical procedures accountants would perform on a review engagement.

The performance of an attestation engagement on prospective financial information does not require which of the following?

The accountant's standard report for a review service would not include a statement that

Auditing and Assurance Services

Professional Standards

Engagement Planning

Management Fraud and Audit Risk

Risk Assessment: Internal Control Evaluation

Employee Fraud and the Audit of Cash

Revenue and Collection Cycle

Acquisition and Expenditure Cycle

Production Cycle

Finance and Investment Cycle

Completing the Audit

Reports on Audited Financial Statements

Professional Ethics

Legal Liability

Internal Governmental and Fraud Audits

Overview of Sampling

Attributes Sampling

Variables Sampling

Auditing in a Computerized Environment

Filters

The combination of prior-year/current-year order of the same or higher level of service would include a compilation followed by ______________,a _ followed by review,and a review followed by a ______________.