Exam 21: Assurance,Attestation,and Internal Auditing Services

During an engagement to review the financial statements of a nonpublic entity,an accountant becomes aware of a material departure from GAAP.If the accountant decides to modify the standard review report because management will not revise the financial statements,the accountant should

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

B

During a review of financial statements of a nonpublic entity,the CPA would be least likely to

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

B

The International Professional Practices Framework developed by the IIA includes all of the following types of guidance,except:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

B

May an accountant plan and perform an engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles?

(Multiple Choice)

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Question 4

Match the attestation standard with the generally accepted auditing standard that is most similar in nature.

The practitioner must state the practitioner's conclusion about the subject matter or the assertion in relation to the criteria against which the subject matter was evaluated in the report

The auditor must have adequate technical training and proficiency to perform the audit

The practitioner must state all of the practitioner's significant reservations about the engagement, the subject matter and, if applicable, the assertion related thereto in the report

The auditor must exercise due professional care in the performance of the audit and the preparation of the report

The practitioner must adequately plan the work and must properly supervise any assistants

The auditor must adequately plan the work and must properly supervise any assistants

Correct Answer:

Verified

The practitioner must state the practitioner's conclusion about the subject matter or the assertion in relation to the criteria against which the subject matter was evaluated in the report

The practitioner must state all of the practitioner's significant reservations about the engagement, the subject matter and, if applicable, the assertion related thereto in the report

The practitioner must adequately plan the work and must properly supervise any assistants

The practitioner must have adequate technical training and proficiency in the attest function

The practitioner must exercise due professional care in the planning and performance of the engagement

(Matching)

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Question 5

Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?

(Multiple Choice)

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Question 6

Jones Retailing,a nonpublic entity,has asked Winters,CPA,to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles.Winters may compile such financial statements,provided the

(Multiple Choice)

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Question 7

Statements on Standards for Accounting and Review Services (SSARS)require an accountant to report when the accountant has

(Multiple Choice)

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Question 8

Which of the following should not be included in an accountant's standard report based upon the compilation of an entity's financial statements?

(Multiple Choice)

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Question 9

The report in a review engagement provides

(Multiple Choice)

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Question 10

Accepting an engagement to examine an entity's financial projections would most likely be appropriate if distribution of the projections were limited to

(Multiple Choice)

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Question 11

How has the advancement in technology led to the creation of the Trust Services?

(Essay)

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Question 12

A SysTrust engagement is conducted under which of the following sets of standards?

(Multiple Choice)

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Question 13

Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?

(Multiple Choice)

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Question 14

An accountant's standard report on a compilation of a projection should not include

(Multiple Choice)

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Question 15

During a review of the financial statements of a nonpublic entity,an accountant becomes aware of inadequate disclosure that is material to the financial statements.If management refuses to correct the financial statement presentations,the accountant should

(Multiple Choice)

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Question 16

Which of the following is not a main goal of the internal auditing profession?

(Multiple Choice)

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Question 17

Which of the following statements is not true concerning assurance services?

(Multiple Choice)

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Question 18

Compilation reports may include

(Multiple Choice)

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Question 19

An accountant's compilation report on a financial forecast should include a statement that the

(Multiple Choice)

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Question 20

During an engagement to review the financial statements of a nonpublic entity,an accountant becomes aware of a material departure from GAAP.If the accountant decides to modify the standard review report because management will not revise the financial statements,the accountant should

During a review of financial statements of a nonpublic entity,the CPA would be least likely to

The International Professional Practices Framework developed by the IIA includes all of the following types of guidance,except:

May an accountant plan and perform an engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles?

Which of the following procedures is not usually performed by the accountant during a review engagement of a nonpublic entity?

Jones Retailing,a nonpublic entity,has asked Winters,CPA,to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles.Winters may compile such financial statements,provided the

Statements on Standards for Accounting and Review Services (SSARS)require an accountant to report when the accountant has

Which of the following should not be included in an accountant's standard report based upon the compilation of an entity's financial statements?

The report in a review engagement provides

Accepting an engagement to examine an entity's financial projections would most likely be appropriate if distribution of the projections were limited to

How has the advancement in technology led to the creation of the Trust Services?

A SysTrust engagement is conducted under which of the following sets of standards?

Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?

An accountant's standard report on a compilation of a projection should not include

During a review of the financial statements of a nonpublic entity,an accountant becomes aware of inadequate disclosure that is material to the financial statements.If management refuses to correct the financial statement presentations,the accountant should

Which of the following is not a main goal of the internal auditing profession?

Which of the following statements is not true concerning assurance services?

Compilation reports may include

An accountant's compilation report on a financial forecast should include a statement that the

An Introduction to Assurance and Financial Statement Auditing

The Financial Statement Auditing Environment

Audit Planning,Types of Audit Tests,and Materiality

Risk Assessment

Evidence and Documentation

Internal Control in a Financial Statement Audit

Auditing Internal Control Over Financial Reporting

Audit Sampling: An Overview and Application to Tests of Controls

Audit Sampling: An Application to Substantive Tests of Account Balances

Auditing the Revenue Process

Auditing the Purchasing Process

Auditing the Human Resource Management Process

Assurance,Attestation,and Internal Auditing Services

Auditing the Financinginvesting Process: Prepaid Expenses, Intangible Assets, and Property, Plant, and Equipment

Auditing the Financinginvesting Process: Long-Term Liabilities, Stockholders Equity, and Income Statement Accounts

Auditing the Financinginvesting Process: Cash and Investments

Completing the Audit Engagement

Reports on Audited Financial Statements

Professional Conduct,Independence,and Quality Control

Legal Liability

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