Question 1

Which of the following is the authoritative body designated to promulgate attestation standards for nonpublic entities?

Accepted Answer

A)  AICPA (Auditing Standards Board). 
B)  Governmental Accounting Standards Board. 
C)  Financial Accounting Standards Board. 
D)  General Accounting Office. 
A)  AICPA (Auditing Standards Board). 
B)  Governmental Accounting Standards Board. 
C)  Financial Accounting Standards Board. 
D)  General Accounting Office.

Question 2

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

Accepted Answer

A)  Perform a review. 
B)  Perform a compilation. 
C)  Perform an examination. 
D)  Apply agreed-upon procedures. 
A)  Perform a review. 
B)  Perform a compilation. 
C)  Perform an examination. 
D)  Apply agreed-upon procedures.

Question 3

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control:
 (1)examination or (2)review.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not an attestation standard?

Accepted Answer

A)  Sufficient evidence shall be obtained to provide a reasonable basis for the conclusion that is expressed in the report. 
B)  The report shall identify the subject matter or assertion being reported on and state the character of the engagement. 
C)  The work shall be adequately planned and assistants, if any, shall be properly supervised. 
D)  A sufficient understanding of internal controls shall be obtained to plan the engagement. 
A)  Sufficient evidence shall be obtained to provide a reasonable basis for the conclusion that is expressed in the report. 
B)  The report shall identify the subject matter or assertion being reported on and state the character of the engagement. 
C)  The work shall be adequately planned and assistants, if any, shall be properly supervised. 
D)  A sufficient understanding of internal controls shall be obtained to plan the engagement.

Question 5

Which of the following statements best describes the guidance developed by the AICPA related to WebTrust services?

Accepted Answer

A)  The Trust Services principles require the CPA to focus exclusively on the financial information presented on a website. 
B)  Once earned, the WebTrust seal can remain on a website until the entity controlling the site informs the CPA that the information on the site has changed. 
C)  In performing a WebTrust assurance engagement, a CPA does not have to consider auditing or attestation standards. 
D)  The Trust Services principles provide a broad set of criteria that guide practitioners in testing and evaluating websites. 
A)  The Trust Services principles require the CPA to focus exclusively on the financial information presented on a website. 
B)  Once earned, the WebTrust seal can remain on a website until the entity controlling the site informs the CPA that the information on the site has changed. 
C)  In performing a WebTrust assurance engagement, a CPA does not have to consider auditing or attestation standards. 
D)  The Trust Services principles provide a broad set of criteria that guide practitioners in testing and evaluating websites.

Question 6

Which of the following procedures is not included in a review engagement of a nonpublic entity?

Accepted Answer

A)  Inquiries of management. 
B)  Inquiries regarding significant events subsequent to the balance sheet date. 
C)  Any procedures designed to identify relationships among data that appear to be unusual. 
D)  A study and evaluation of internal control. 
A)  Inquiries of management. 
B)  Inquiries regarding significant events subsequent to the balance sheet date. 
C)  Any procedures designed to identify relationships among data that appear to be unusual. 
D)  A study and evaluation of internal control.

Question 7

In providing PrimePlus services,a CPA is likely to perform all of the following functions except:

Accepted Answer

A)  Observe and report on the quality of care provided to older individuals. 
B)  Directly receive income and pay bills and provide an accounting for these transactions. 
C)  Directly evaluate the quality of health care services provided by physicians and other medical caregivers. 
D)  Perform assurance-related procedures by inspecting logs or other evidence to support that contracted services have been provided. 
A)  Observe and report on the quality of care provided to older individuals. 
B)  Directly receive income and pay bills and provide an accounting for these transactions. 
C)  Directly evaluate the quality of health care services provided by physicians and other medical caregivers. 
D)  Perform assurance-related procedures by inspecting logs or other evidence to support that contracted services have been provided.

Question 8

An attest service occurs when a practitioner is engaged to issue a report on subject matter that is the responsibility of another party.

Accepted Answer

A) True 
 B)False

Question 9

Before performing a compilation of the financial statements of a nonpublic entity,an accountant should

Accepted Answer

A)  Perform a thorough study and evaluation of the internal control system. 
B)  Complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions. 
C)  Design working papers intended to provide sufficient competent evidential matter to afford a reasonable basis for a compilation opinion. 
D)  Obtain an understanding of the accounting principles and practices of the industry in which the entity operates. 
A)  Perform a thorough study and evaluation of the internal control system. 
B)  Complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions. 
C)  Design working papers intended to provide sufficient competent evidential matter to afford a reasonable basis for a compilation opinion. 
D)  Obtain an understanding of the accounting principles and practices of the industry in which the entity operates.

Question 10

Inquiry and analytical procedures ordinarily performed during a review of a nonpublic entity's financial statements include

Accepted Answer

A)  Analytical procedures designed to identify material weaknesses in internal control. 
B)  Inquiries concerning actions taken at meetings of the stockholders and the board of directors. 
C)  Analytical procedures designed to test the accounting records by obtaining corroborating evidential matter. 
D)  Inquiries of knowledgeable outside parties such as the client's attorneys and bankers. 
A)  Analytical procedures designed to identify material weaknesses in internal control. 
B)  Inquiries concerning actions taken at meetings of the stockholders and the board of directors. 
C)  Analytical procedures designed to test the accounting records by obtaining corroborating evidential matter. 
D)  Inquiries of knowledgeable outside parties such as the client's attorneys and bankers.

Question 11

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

Accepted Answer

A)  Perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable. 
B)  Complete the preliminary phase of the study and evaluation of the entity's internal control. 
C)  Verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation. 
D)  Acquire a knowledge of any specialized accounting principles and practices used in the entity's industry. 
A)  Perform analytical procedures sufficient to determine whether fluctuations among account balances appear reasonable. 
B)  Complete the preliminary phase of the study and evaluation of the entity's internal control. 
C)  Verify that the financial information supplied by the entity agrees with the books of original entry and supporting documentation. 
D)  Acquire a knowledge of any specialized accounting principles and practices used in the entity's industry.

Question 12

Examples of attest engagements include examination,review,and agreed-upon procedures engagements.

Accepted Answer

A) True 
 B)False

Question 13

Assurance services are independent professional services that improve the quality of information specifically for internal decision makers.

Accepted Answer

A) True 
 B)False

Question 14

IIA Standards include

Accepted Answer

A)  Practice advisories. 
B)  Code of Ethics. 
C)  Interpretations. 
D)  Both A and B. 
A)  Practice advisories. 
B)  Code of Ethics. 
C)  Interpretations. 
D)  Both A and B.

Question 15

Internal auditors fall into two primary categories―assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

Accepted Answer

a.Assurance services involve the interna

Question 16

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

Accepted Answer

A)  A third-party lending institution. 
B)  The client's management. 
C)  The reporting accountant. 
D)  The client's independent auditor. 
A)  A third-party lending institution. 
B)  The client's management. 
C)  The reporting accountant. 
D)  The client's independent auditor.

Question 17

A compilation of prospective financial statements involves all of the following except:

Accepted Answer

A)  Performing analytical procedures. 
B)  Assembling the statements based on the responsible party's assumptions. 
C)  Issuing a compilation report. 
D)  Considering whether the statements appear to be not obviously inappropriate. 
A)  Performing analytical procedures. 
B)  Assembling the statements based on the responsible party's assumptions. 
C)  Issuing a compilation report. 
D)  Considering whether the statements appear to be not obviously inappropriate.

Question 18

When an accountant is not independent of a client and is requested to perform a compilation of the client's financial statements,the accountant

Accepted Answer

A)  Is precluded from accepting the engagement. 
B)  May accept the engagement and need not disclose the lack of independence. 
C)  May accept the engagement and should disclose the lack of independence, but need not indicate the reason for the lack of independence. 
D)  May accept the engagement and should disclose both the lack of independence and the reason for the lack of independence. 
A)  Is precluded from accepting the engagement. 
B)  May accept the engagement and need not disclose the lack of independence. 
C)  May accept the engagement and should disclose the lack of independence, but need not indicate the reason for the lack of independence. 
D)  May accept the engagement and should disclose both the lack of independence and the reason for the lack of independence.

Question 19

Which of the following are prospective financial statements upon which an accountant may appropriately report for general use?

Accepted Answer

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

Question 20

An agreed-upon procedures engagement is significantly more limited in scope than an examination.An accountant may perform an agreed-upon procedures attestation engagement for prospective financial statements provided that attestation standards are complied with and ten criteria are met.Identify five of the ten criteria below.

Accepted Answer

Answer should include 5 of the following

Which of the following is the authoritative body designated to promulgate attestation standards for nonpublic entities?

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1)examination or (2)review.

Which of the following is not an attestation standard?

Which of the following statements best describes the guidance developed by the AICPA related to WebTrust services?

Which of the following procedures is not included in a review engagement of a nonpublic entity?

In providing PrimePlus services,a CPA is likely to perform all of the following functions except:

An attest service occurs when a practitioner is engaged to issue a report on subject matter that is the responsibility of another party.

Before performing a compilation of the financial statements of a nonpublic entity,an accountant should

Inquiry and analytical procedures ordinarily performed during a review of a nonpublic entity's financial statements include

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

Examples of attest engagements include examination,review,and agreed-upon procedures engagements.

Assurance services are independent professional services that improve the quality of information specifically for internal decision makers.

IIA Standards include

Internal auditors fall into two primary categories―assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

A compilation of prospective financial statements involves all of the following except:

When an accountant is not independent of a client and is requested to perform a compilation of the client's financial statements,the accountant

Which of the following are prospective financial statements upon which an accountant may appropriately report for general use?

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

Filters

Exam 21: Assurance,Attestation,and Internal Auditing Services

Which of the following is the authoritative body designated to promulgate attestation standards for nonpublic entities?

When third party use of prospective financial statements is expected,an accountant may not accept an engagement to

A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1)examination or (2)review.

Which of the following is not an attestation standard?

Which of the following statements best describes the guidance developed by the AICPA related to WebTrust services?

Which of the following procedures is not included in a review engagement of a nonpublic entity?

In providing PrimePlus services,a CPA is likely to perform all of the following functions except:

An attest service occurs when a practitioner is engaged to issue a report on subject matter that is the responsibility of another party.

Before performing a compilation of the financial statements of a nonpublic entity,an accountant should

Inquiry and analytical procedures ordinarily performed during a review of a nonpublic entity's financial statements include

Prior to commencing the compilation of financial statements of a nonpublic entity,the accountant should

Examples of attest engagements include examination,review,and agreed-upon procedures engagements.

Assurance services are independent professional services that improve the quality of information specifically for internal decision makers.

IIA Standards include

Internal auditors fall into two primary categories―assurance services and consulting services.Briefly explain these two categories in relation to internal auditors.

The party responsible for assumptions identified in the preparation of prospective financial statements is usually

A compilation of prospective financial statements involves all of the following except:

When an accountant is not independent of a client and is requested to perform a compilation of the client's financial statements,the accountant

Which of the following are prospective financial statements upon which an accountant may appropriately report for general use?

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

Filters