Question 1

Independence is required when performing: $$\begin{array} { c } 
&\text { Attest Services } & \text {Assurance Services }\
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

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 2

Which of the following is correct concerning service auditor and SysTrust reports?

Accepted Answer

A) They both result in restricted use reports. 
B) A client must engage the CPA to perform both services as neither may be selected independently of the other. 
C) They both address system reliability. 
D) They represent different names for the same service. 
A) They both result in restricted use reports. 
B) A client must engage the CPA to perform both services as neither may be selected independently of the other. 
C) They both address system reliability. 
D) They represent different names for the same service.

Question 3

Trust Services are a part of the AICPA's vision that increased trust in annual historical financial statements is necessary.

Accepted Answer

A) True 
 B)False

Question 4

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 5

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.

Question 6

Under the attestation standards,in which of the following circumstances is a review report least likely to be issued?

Accepted Answer

A) Criteria are agreed-upon or only available to specified users. 
B) Established criteria exist, but other criteria are used. 
C) The subject matter departs from the criteria. 
D) A significant limitation on the scope of the engagement has occurred. 
A) Criteria are agreed-upon or only available to specified users. 
B) Established criteria exist, but other criteria are used. 
C) The subject matter departs from the criteria. 
D) A significant limitation on the scope of the engagement has occurred.

Question 7

When a CPA is associated with a forecast,all of the following should be disclosed except the:

Accepted Answer

A) Sources of information. 
B) Character of the work performed by the CPA. 
C) Major assumptions in the preparation of the forecast. 
D) Probability of achieving estimates. 
A) Sources of information. 
B) Character of the work performed by the CPA. 
C) Major assumptions in the preparation of the forecast. 
D) Probability of achieving estimates.

Question 8

Arel,CPA,was engaged by a group of royalty recipients to apply agreed-upon procedures to financial data supplied by Modit Co.regarding Modit's written assertion about its compliance with contractual requirements to pay royalties.Arel's report on these agreed-upon procedures should contain a(an).

Accepted Answer

A) Disclaimer of opinion about the fair presentation of Modit's financial statements. 
B) List of the procedures performed (or reference thereto) and Arel's findings. 
C) Opinion about the effectiveness of Modit's internal control activities concerning royalty payments. 
D) Acknowledgment that the sufficiency of the procedures is solely Arel's responsibility. 
A) Disclaimer of opinion about the fair presentation of Modit's financial statements. 
B) List of the procedures performed (or reference thereto) and Arel's findings. 
C) Opinion about the effectiveness of Modit's internal control activities concerning royalty payments. 
D) Acknowledgment that the sufficiency of the procedures is solely Arel's responsibility.

Question 9

Independence is required for the performance of all assurance services.

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

Assurance services performed for decision makers may address the: $$\begin{array} { c } 
& \text { Quality of information } & \text{Context of information }\
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

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 12

Which of the following is a prospective financial statement for general use upon which a practitioner may appropriately report?

Accepted Answer

A) Financial projection. 
B) Partial presentation. 
C) Pro forma financial statement. 
D) Financial forecast. 
A) Financial projection. 
B) Partial presentation. 
C) Pro forma financial statement. 
D) Financial forecast.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

A practitioner may be engaged to perform a review of management's discussion and analysis for an annual or an interim period.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is least likely to be included in an agreed-upon procedures attestation engagement report?

Accepted Answer

A) The specified party takes responsibility for the sufficiency of procedures. 
B) Use of the report is restricted. 
C) Limited assurance on the information presented. 
D) A summary of procedures performed. 
A) The specified party takes responsibility for the sufficiency of procedures. 
B) Use of the report is restricted. 
C) Limited assurance on the information presented. 
D) A summary of procedures performed.

Question 16

In an engagement relating to a nonpublic company,conditions exist that result in a material deviation from the criteria against which the subject matter was evaluated during an examination performed following the attestation standards.The CPA's conclusion may be on: $$\begin{array} {c} 
&\text { Subject Matter } & \text { Written Assertion }\
\text { A) } & \text { Yes } & \text { Yes } \
\text { B) } & \text { Yes } & \text { No } \
\text { C) } & \text { No } & \text { Yes } \
\text { D) } & \text { No } & \text { No }
\end{array}$$

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 17

Which attest engagement aligns most directly with a financial statement audit in terms of assurance provided?

Accepted Answer

A) Agreed-upon procedures. 
B) Evaluation. 
C) Examination. 
D) Review. 
A) Agreed-upon procedures. 
B) Evaluation. 
C) Examination. 
D) Review.

Question 18

Which of the following is not currently an acceptable form of association with prospective financial statements?

Accepted Answer

A) Compilation. 
B) Review. 
C) Agreed-upon procedures. 
D) Examination. 
A) Compilation. 
B) Review. 
C) Agreed-upon procedures. 
D) Examination.

Question 19

The Warren Corporation wants to enhance the market value of its stock by including in its annual report a financial forecast for the next year.They also would like to have their auditors examine the forecast.
a.Define a financial forecast.
b.Is an examination of a financial forecast similar in scope to a review of financial statements?

Accepted Answer

a.A financial forecast is "an estimate o

Question 20

Practitioners may report on either an assertion about the subject matter,or on the subject matter for most attestation engagements.

Accepted Answer

A) True 
 B)False

Independence is required when performing: Attest Services Assurance Services A) Yes Yes B) Yes No C) No Yes D) No No

Which of the following is correct concerning service auditor and SysTrust reports?

Trust Services are a part of the AICPA's vision that increased trust in annual historical financial statements is necessary.

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

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

Under the attestation standards,in which of the following circumstances is a review report least likely to be issued?

When a CPA is associated with a forecast,all of the following should be disclosed except the:

Arel,CPA,was engaged by a group of royalty recipients to apply agreed-upon procedures to financial data supplied by Modit Co.regarding Modit's written assertion about its compliance with contractual requirements to pay royalties.Arel's report on these agreed-upon procedures should contain a(an).

Independence is required for the performance of all assurance services.

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:

Assurance services performed for decision makers may address the: Quality of information Context of information A) Yes Yes B) Yes No C) No Yes D) No No

Which of the following is a prospective financial statement for general use upon which a practitioner may appropriately report?

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

A practitioner may be engaged to perform a review of management's discussion and analysis for an annual or an interim period.

Which of the following is least likely to be included in an agreed-upon procedures attestation engagement report?

Which attest engagement aligns most directly with a financial statement audit in terms of assurance provided?

Which of the following is not currently an acceptable form of association with prospective financial statements?

Practitioners may report on either an assertion about the subject matter,or on the subject matter for most attestation engagements.

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 Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Internal, Operational, and Compliance Auditing

Probability-Proportion-To-Size Sampling

Filters

Exam 20: Additional Assurance Services: Other Information

Independence is required when performing: Attest Services Assurance Services A) Yes Yes B) Yes No C) No Yes D) No No

Which of the following is correct concerning service auditor and SysTrust reports?

Trust Services are a part of the AICPA's vision that increased trust in annual historical financial statements is necessary.

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

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

Under the attestation standards,in which of the following circumstances is a review report least likely to be issued?

When a CPA is associated with a forecast,all of the following should be disclosed except the:

Arel,CPA,was engaged by a group of royalty recipients to apply agreed-upon procedures to financial data supplied by Modit Co.regarding Modit's written assertion about its compliance with contractual requirements to pay royalties.Arel's report on these agreed-upon procedures should contain a(an).

Independence is required for the performance of all assurance services.

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:

Assurance services performed for decision makers may address the: Quality of information Context of information A) Yes Yes B) Yes No C) No Yes D) No No

Which of the following is a prospective financial statement for general use upon which a practitioner may appropriately report?

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

A practitioner may be engaged to perform a review of management's discussion and analysis for an annual or an interim period.

Which of the following is least likely to be included in an agreed-upon procedures attestation engagement report?

Which attest engagement aligns most directly with a financial statement audit in terms of assurance provided?

Which of the following is not currently an acceptable form of association with prospective financial statements?

Practitioners may report on either an assertion about the subject matter,or on the subject matter for most attestation engagements.

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 Report

Integrated Audits of Public Companies

Additional Assurance Services: Historical Financial Information

Internal, Operational, and Compliance Auditing

Probability-Proportion-To-Size Sampling

Filters