Exam 13: Other Public Accounting Services

Attestation engagements may be more difficult than financial statement audits when

Other comprehensive basis of accounting (OCBOA)includes all of the following except

A __________________________________ is based on expected conditions and courses of action.

The user auditor can rely on special purpose reports on internal control of a service organization in connection with the evaluation of the client organization.

Big Ben's Toy (BBT)Company has recently outsourced its payroll operation to Mary's Payroll Service (MPS).MPS receives the changes to the payroll database (hirings,firings,rate increases,etc.)and the number of hours worked for all hourly employees.MPS calculates the payroll and sends BBT printed payroll checks and a payroll register.BBT then transfers an appropriate amount into its payroll bank account and distributes the checks.MPS also provides a list of payments to be made to third parties (IRS,insurance,pension plan,etc.).Accounts payable uses the list of third-party payments to make appropriate payments. You have been hired to perform an audit of BBT Company.During your opening meeting with BBT management,you state that your audit plan includes inquiries of MPS and a review of the AT 801 report on internal controls at MPS.BBT's management is confused and states that BBT should not have to pay you to review controls at another organization. Prepare a brief explanation for BBT's management as to why it is necessary to review the controls at MPS and the importance of this review to BBT Company.

What is the appropriate name for an assurance service provided by a CPA regarding a client's commercial Internet site with reference to the principles of privacy,security,processing integrity,availability,and confidentiality?

In reporting on a nonpublic entity's internal control over financial reporting,an accountant should include a paragraph that describes the

An auditor who is requested to provide a report on application of requirements of an appropriate financial reporting framework may not

Companies that are not subject to SEC regulations can choose to present financial information in accordance with a special purpose framework other than GAAP.

Services in connection with unaudited historical cost financial statements is conducted by

Hamell Corporation is making a presentation to a perspective 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.The CPA should ensure that proper disclosure is made to indicate that

An assurance service is defined as a service that

At a minimum to comply with PCAOB AS 5,an auditor of a public company that has material transactions processed by a service organization would have to request from the service organization

An accountant could not issue compiled financial statements that would include a report