Question 1

The type of service organization control (SOC) report that is for general use is:

Accepted Answer

A)  SOC 1. 
B)  SOC 2. 
C)  SOC 3. 
D)  SOC 4. 
A)  SOC 1. 
B)  SOC 2. 
C)  SOC 3. 
D)  SOC 4. C

Question 2

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. D

Question 3

Following are a set of statements. For each statement indicate with an "X" whether it is correct with respect to an examination, a review, and/or an agreed-upon procedures engagement. Each statement may relate to none, one or more services.

Accepted Answer

\[\begin{array} { | l | l | c | c | c | } 
\hline &\text { Statement } & \text { Examination } & \text { Review } & \begin{array} { c } 
\text { Agreedupon } \
\text { procedures }
\end{array} \
\hline \text { 1. } & \text { Independence is required. } & x & x & x \
\hline \text { 2. } & \begin{array} { l } 
\text { The report issued includes a list of procedures pertormed and a } \
\text { summary of findings. }
\end{array} & & & x \
\hline \text { 3. } & \text { Subject matter is required for the engagement. } & x& x &x \
\hline \text { 4. } & \text { The report includes limited assurance. } &&x\
\text { 5. } & \text { The report includes negative assurance. } & & x & \
\hline \text { 6. } & \begin{array} { l } 
\text { Materially misstated client information leads to either a qualified or } \
\text { adverse opinion. }
\end{array} & x&  & \
\hline \text { 7. } & \text { Specified parties agree on the nature of the procedures. } & & &x\
\hline \text { 8. } & \text { This form of association is not available for a financial forecast. } & & x& \
\hline
\end{array}\]

Question 4

When a financial forecast fails to disclose a significant assumption used to prepare that forecast, which of the following reports become appropriate? $$\begin{array} { | c | c | c | } 
\hline & \text { Qualified } & \text { Adrerse } \
\hline \text { A. } & \text { Yes } & \text { Yes } \
\hline \text { B. } & \text { Yes } & \text { No } \
\hline \text { C. } & \text { No } & \text { Yes } \
\hline \text { D. } & \text { No } & \text { No } \
\hline
\end{array}$$

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 5

When a practitioner examines projected financial statements, the practitioner's report should include a separate paragraph that:

Accepted Answer

A)  Describes the limitations on the usefulness of the presentation. 
B)  Provides an explanation of the differences between an examination and a review. 
C)  States that the accountant is responsible for events and circumstances for a period not exceeding one year after the report's date. 
D)  Disclaims an opinion on whether the assumptions provide a reasonable basis for the projection. 
A)  Describes the limitations on the usefulness of the presentation. 
B)  Provides an explanation of the differences between an examination and a review. 
C)  States that the accountant is responsible for events and circumstances for a period not exceeding one year after the report's date. 
D)  Disclaims an opinion on whether the assumptions provide a reasonable basis for the projection.

Question 6

Which of the following engagements is most likely to consider security, availability, processing integrity, confidentiality, and privacy relating to a system?

Accepted Answer

A)  Internal control over financial reporting. 
B)  Trust Services. 
C)  Website Associate. 
D)  Financial statement audit. 
A)  Internal control over financial reporting. 
B)  Trust Services. 
C)  Website Associate. 
D)  Financial statement audit.

Question 7

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 8

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 9

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 10

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 11

An international information format designed specifically for business information is:

Accepted Answer

A)  ERP. 
B)  XML. 
C)  Integrated Systems Format. 
D)  XBRL. 
A)  ERP. 
B)  XML. 
C)  Integrated Systems Format. 
D)  XBRL.

Question 12

The AICPA has outlined auditor reports based on three services that may be provided on service organization controls (SOC). The type most directly related to SysTrust is:

Accepted Answer

A)  SOC 1. 
B)  SOC SYS. 
C)  SOC 3. 
D)  SOC OC. 
A)  SOC 1. 
B)  SOC SYS. 
C)  SOC 3. 
D)  SOC OC.

Question 13

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 14

When an accountant compiles a financial forecast, the accountant's report should include a(n):

Accepted Answer

A)  Explanation of the differences between a financial forecast and a financial projection. 
B)  Caveat that the prospective results of the financial forecast may not be achieved. 
C)  Statement that the accountant's responsibility to update the report is limited to one year. 
D)  Disclaimer of opinion on the reliability of the entity's internal controls. 
A)  Explanation of the differences between a financial forecast and a financial projection. 
B)  Caveat that the prospective results of the financial forecast may not be achieved. 
C)  Statement that the accountant's responsibility to update the report is limited to one year. 
D)  Disclaimer of opinion on the reliability of the entity's internal controls.

Question 15

Which of the following is the least likely to be considered subject matter of an attestation engagement?

Accepted Answer

A)  Assertion. 
B)  Behavior. 
C)  Historical event. 
D)  Systems and processes. 
A)  Assertion. 
B)  Behavior. 
C)  Historical event. 
D)  Systems and processes.

Question 16

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 17

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

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 18

When reporting upon a review engagement on an entity's management discussion and analysis, the report is ordinarily:

Accepted Answer

A)  A general use report. 
B)  A restricted use report. 
C)  Required to include a disclaimer of opinion. 
D)  Included with the entity's report on internal control over financial reporting. 
A)  A general use report. 
B)  A restricted use report. 
C)  Required to include a disclaimer of opinion. 
D)  Included with the entity's report on internal control over financial reporting.

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? Explain.

Accepted Answer

a. A financial forecast is "an estimate

Question 20

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.

The type of service organization control (SOC) report that is for general use is:

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

Following are a set of statements. For each statement indicate with an "X" whether it is correct with respect to an examination, a review, and/or an agreed-upon procedures engagement. Each statement may relate to none, one or more services.

When a financial forecast fails to disclose a significant assumption used to prepare that forecast, which of the following reports become appropriate? Qualified Adrerse A. Yes Yes B. Yes No C. No Yes D. No No

When a practitioner examines projected financial statements, the practitioner's report should include a separate paragraph that:

Which of the following engagements is most likely to consider security, availability, processing integrity, confidentiality, and privacy relating to a system?

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

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

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

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

An international information format designed specifically for business information is:

The AICPA has outlined auditor reports based on three services that may be provided on service organization controls (SOC). The type most directly related to SysTrust is:

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:

When an accountant compiles a financial forecast, the accountant's report should include a(n):

Which of the following is the least likely to be considered subject matter of an attestation engagement?

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

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

When reporting upon a review engagement on an entity's management discussion and analysis, the report is ordinarily:

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

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Planning the Audit; Linking Audit Procedures to Risk

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

Filters

Exam 20: Additional Assurance Services: Other Information

The type of service organization control (SOC) report that is for general use is:

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

Following are a set of statements. For each statement indicate with an "X" whether it is correct with respect to an examination, a review, and/or an agreed-upon procedures engagement. Each statement may relate to none, one or more services.

When a financial forecast fails to disclose a significant assumption used to prepare that forecast, which of the following reports become appropriate? Qualified Adrerse A. Yes Yes B. Yes No C. No Yes D. No No

When a practitioner examines projected financial statements, the practitioner's report should include a separate paragraph that:

Which of the following engagements is most likely to consider security, availability, processing integrity, confidentiality, and privacy relating to a system?

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

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

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

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

An international information format designed specifically for business information is:

The AICPA has outlined auditor reports based on three services that may be provided on service organization controls (SOC). The type most directly related to SysTrust is:

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:

When an accountant compiles a financial forecast, the accountant's report should include a(n):

Which of the following is the least likely to be considered subject matter of an attestation engagement?

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

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

When reporting upon a review engagement on an entity's management discussion and analysis, the report is ordinarily:

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

The Role of the Public Accountant in the American Economy

Professional Standards

Professional Ethics

Legal Liability of Cpas

Audit Evidence and Documentation

Planning the Audit; Linking Audit Procedures to Risk

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

Filters