Question 1

Independence is required

Accepted Answer

A)  under GAAS but not attestation standards. 
B)  under both GAAS and attestation standards. 
C)  under attestation standards but not GAAS. 
D)  is preferred but not required under both GAAS and attestation standards. 
A)  under GAAS but not attestation standards. 
B)  under both GAAS and attestation standards. 
C)  under attestation standards but not GAAS. 
D)  is preferred but not required under both GAAS and attestation standards.

Question 2

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

Accepted Answer

A)  Assisting in adjusting the books of account for a partnership. 
B)  Examining prospective financial statements. 
C)  Processing financial data for clients of other accounting firms. 
D)  Compiling an individual's personal financial statement to be used to obtain a mortgage. 
A)  Assisting in adjusting the books of account for a partnership. 
B)  Examining prospective financial statements. 
C)  Processing financial data for clients of other accounting firms. 
D)  Compiling an individual's personal financial statement to be used to obtain a mortgage.

Question 3

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

Accepted Answer

A)  the general public on the entity's website. 
B)  potential stockholders who request a prospectus or a registration statement. 
C)  a bank with which the entity is negotiating for a loan. 
D)  all stockholders of record as of the report date. 
A)  the general public on the entity's website. 
B)  potential stockholders who request a prospectus or a registration statement. 
C)  a bank with which the entity is negotiating for a loan. 
D)  all stockholders of record as of the report date.

Question 4

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

The advancement in technology has increa

Question 6

The expectation that an internal auditor does not accept gifts that may impair judgment is based on the principle of

Accepted Answer

A)  integrity. 
B)  objectivity. 
C)  confidentiality. 
D)  competency. 
A)  integrity. 
B)  objectivity. 
C)  confidentiality. 
D)  competency.

Question 7

Limited assurance is provided in

Accepted Answer

A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed. 
A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed.

Question 8

Which of the following procedures is more likely to be performed in a review engagement of a nonpublic entity than in a compilation engagement?

Accepted Answer

A)  Gaining an understanding of the entity's business transactions. 
B)  Making a preliminary assessment of control risk. 
C)  Obtaining a representation letter from the chief executive officer. 
D)  Assisting the entity in adjusting the accounting records. 
A)  Gaining an understanding of the entity's business transactions. 
B)  Making a preliminary assessment of control risk. 
C)  Obtaining a representation letter from the chief executive officer. 
D)  Assisting the entity in adjusting the accounting records.

Question 9

Reasonable assurance is provided in

Accepted Answer

A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed. 
A)  an audit engagement. 
B)  a compilation engagement. 
C)  a review engagement. 
D)  none of the items listed.

Question 10

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 11

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Accepted Answer

A)  The CPA is not permitted to provide any other services for the entity if he or she is to perform the service. 
B)  The service will require the CPA to apply all of the attestation and auditing standards. 
C)  The service provides information regarding whether the information system provides reliable information for internal operating decisions. 
D)  Performing the service will not require the collection of evidence. 
A)  The CPA is not permitted to provide any other services for the entity if he or she is to perform the service. 
B)  The service will require the CPA to apply all of the attestation and auditing standards. 
C)  The service provides information regarding whether the information system provides reliable information for internal operating decisions. 
D)  Performing the service will not require the collection of evidence.

Question 12

Which of the following procedures is usually included in a review engagement of a nonpublic entity?

Accepted Answer

A)  The confirmation of accounts receivable. 
B)  A study and evaluation of internal control. 
C)  An inquiry concerning subsequent events. 
D)  The observation of physical inventory counts. 
A)  The confirmation of accounts receivable. 
B)  A study and evaluation of internal control. 
C)  An inquiry concerning subsequent events. 
D)  The observation of physical inventory counts.

Question 13

When engaged to compile the financial statements of a nonpublic entity,an accountant is required to possess a level of knowledge of the entity's accounting principles and practices.This requirement most likely will include obtaining a general understanding of the

Accepted Answer

A)  stated qualifications of the entity's accounting personnel. 
B)  design of the entity's internal controls placed in operation. 
C)  risk factors relating to misstatements arising from illegal acts. 
D)  internal control awareness of the entity's senior management. 
A)  stated qualifications of the entity's accounting personnel. 
B)  design of the entity's internal controls placed in operation. 
C)  risk factors relating to misstatements arising from illegal acts. 
D)  internal control awareness of the entity's senior management.

Question 14

An accountant is required to comply with the provisions of Statements on Standards for Accounting and Review Services when I.Typing client-prepared financial statements,without modification,as an accommodation to a client.
II)Preparing standard monthly journal entries for depreciation and expiration of prepaid expenses.

Accepted Answer

A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II. 
A)  I only. 
B)  II only. 
C)  Both I and II. 
D)  Neither I nor II.

Question 15

According to the Code of Professional Conduct,what response is appropriate when an accountant,who is not independent,performs a compilation of financial statements?

Accepted Answer

A)  The accountant should indicate in the last sentence of the report that he/she is not independent. 
B)  The accountant should withdraw from the engagement. 
C)  The accountant should express a disclaimer opinion on the compilation. 
D)  The accountant should express an adverse opinion on the compilation. 
A)  The accountant should indicate in the last sentence of the report that he/she is not independent. 
B)  The accountant should withdraw from the engagement. 
C)  The accountant should express a disclaimer opinion on the compilation. 
D)  The accountant should express an adverse opinion on the compilation.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

This concept,while used by both internal and external auditors,is typically assessed quite differently for each.

Accepted Answer

A)  Competence. 
B)  Objectivity. 
C)  Integrity. 
D)  Materiality. 
A)  Competence. 
B)  Objectivity. 
C)  Integrity. 
D)  Materiality.

Question 18

The public has turned to CPAs to provide assurance services primarily because

Accepted Answer

A)  the independence and objectivity of CPAs increase the public trust. 
B)  there is a need to develop new revenue streams for accounting firms. 
C)  audits do not provide reliable information for decision makers. 
D)  CPAs have been proactive in identifying new types of assurance services to market to customers. 
A)  the independence and objectivity of CPAs increase the public trust. 
B)  there is a need to develop new revenue streams for accounting firms. 
C)  audits do not provide reliable information for decision makers. 
D)  CPAs have been proactive in identifying new types of assurance services to market to customers.

Question 19

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

Accepted Answer

A)  Inquiry about actions taken at meetings of the board of directors that may affect the financial statements. 
B)  Issuance of a report stating that the review was performed in accordance with standards established by the AICPA. 
C)  Reading of the financial statements to determine if they conform with generally accepted accounting principles. 
D)  Communication of any material weaknesses discovered during the consideration of internal control. 
A)  Inquiry about actions taken at meetings of the board of directors that may affect the financial statements. 
B)  Issuance of a report stating that the review was performed in accordance with standards established by the AICPA. 
C)  Reading of the financial statements to determine if they conform with generally accepted accounting principles. 
D)  Communication of any material weaknesses discovered during the consideration of internal control.

Question 20

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

Accepted Answer

A)  The growth in assurance services has been driven in part by users' demands for more relevant information. 
B)  Assurance services focus on improving the quality of information or its context, for decision makers. 
C)  Unlike audit and attestation engagements, an engagement to perform assurance services does not require the CPA to consider information reliability. 
D)  Auditing and attestation services can be viewed as subsets of assurance services since there is overlap in their objectives. 
A)  The growth in assurance services has been driven in part by users' demands for more relevant information. 
B)  Assurance services focus on improving the quality of information or its context, for decision makers. 
C)  Unlike audit and attestation engagements, an engagement to perform assurance services does not require the CPA to consider information reliability. 
D)  Auditing and attestation services can be viewed as subsets of assurance services since there is overlap in their objectives.

Independence is required

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

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

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

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

The expectation that an internal auditor does not accept gifts that may impair judgment is based on the principle of

Limited assurance is provided in

Which of the following procedures is more likely to be performed in a review engagement of a nonpublic entity than in a compilation engagement?

Reasonable assurance is provided in

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

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Which of the following procedures is usually included in a review engagement of a nonpublic entity?

When engaged to compile the financial statements of a nonpublic entity,an accountant is required to possess a level of knowledge of the entity's accounting principles and practices.This requirement most likely will include obtaining a general understanding of the

According to the Code of Professional Conduct,what response is appropriate when an accountant,who is not independent,performs a compilation of financial statements?

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

This concept,while used by both internal and external auditors,is typically assessed quite differently for each.

The public has turned to CPAs to provide assurance services primarily because

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

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

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

Auditing the Inventory Management Process

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

Professsional Conduct,Independence,and Quality Control

Legal Liability

Filters

Exam 21: Assurance,Attestation,amd Internal Auditing Services-professional Judgement Module

Independence is required

Statements on Standards for Accounting and Review Services establish standards and procedures for which of the following engagements?

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

The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control.

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

The expectation that an internal auditor does not accept gifts that may impair judgment is based on the principle of

Limited assurance is provided in

Which of the following procedures is more likely to be performed in a review engagement of a nonpublic entity than in a compilation engagement?

Reasonable assurance is provided in

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

Which of the following statements is true regarding the performance of an assurance service on information systems reliability by a CPA?

Which of the following procedures is usually included in a review engagement of a nonpublic entity?

When engaged to compile the financial statements of a nonpublic entity,an accountant is required to possess a level of knowledge of the entity's accounting principles and practices.This requirement most likely will include obtaining a general understanding of the

According to the Code of Professional Conduct,what response is appropriate when an accountant,who is not independent,performs a compilation of financial statements?

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

This concept,while used by both internal and external auditors,is typically assessed quite differently for each.

The public has turned to CPAs to provide assurance services primarily because

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

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

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

Auditing the Inventory Management Process

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

Professsional Conduct,Independence,and Quality Control

Legal Liability

Filters