Question 1

What is meant by "audit of internal control over financial reporting?"

Accepted Answer

This refers to the direct reporting audi

Question 2

An accountant's communication on the financial statements in a compilation engagement would NOT include a statement that ________.

Accepted Answer

A)  the statements may not be appropriate for the purposes of users 
B)  the financial statement information has been compiled 
C)  a compilation engagement consists primarily of inquiries of company personnel and analytical procedures applied to financial data 
D)  financial statements have not been audited or reviewed and the accountant did not attempt to verify accuracy or completeness. 
A)  the statements may not be appropriate for the purposes of users 
B)  the financial statement information has been compiled 
C)  a compilation engagement consists primarily of inquiries of company personnel and analytical procedures applied to financial data 
D)  financial statements have not been audited or reviewed and the accountant did not attempt to verify accuracy or completeness.

Question 3

The primary purpose for the development of standards by the Criteria of Control Committee was to ________.

Accepted Answer

A)  provide guidance for companies developing best practice control systems 
B)  provide a basis similar to GAAP for reporting on controls 
C)  provide detailed tests of controls for audits of financial statements 
D)  provide clarity on who is responsible for controls 
A)  provide guidance for companies developing best practice control systems 
B)  provide a basis similar to GAAP for reporting on controls 
C)  provide detailed tests of controls for audits of financial statements 
D)  provide clarity on who is responsible for controls

Question 4

According to auditing standards, reportable matters ________.

Accepted Answer

A)  must be searched for by auditors 
B)  must be reported by auditors if they come to their attention 
C)  may only be reported to management 
D)  may be reported on verbally or in writing 
A)  must be searched for by auditors 
B)  must be reported by auditors if they come to their attention 
C)  may only be reported to management 
D)  may be reported on verbally or in writing

Question 5

The scope of a review engagement is ________.

Accepted Answer

A)  similar to that of an audit 
B)  less than that of a compilation 
C)  less than that of an audit 
D)  more than that of an audit 
A)  similar to that of an audit 
B)  less than that of a compilation 
C)  less than that of an audit 
D)  more than that of an audit

Question 6

Under CPA Canada rules, the auditor verifies the accuracy of management's internal controls statement just as he or she verifies the accuracy of financial statements.

Accepted Answer

A) True 
 B)False

Question 7

The scope of a review engagement is similar to that of an audit.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements about a compilation engagement is NOT true?

Accepted Answer

A)  The accountant must have adequate technical training and proficiency in accounting. 
B)  The accountant does not have to have an objective state of mind. 
C)  The statements must comply with generally accepted accounting principles. 
D)  The accountant should adequately plan and properly execute the work. 
A)  The accountant must have adequate technical training and proficiency in accounting. 
B)  The accountant does not have to have an objective state of mind. 
C)  The statements must comply with generally accepted accounting principles. 
D)  The accountant should adequately plan and properly execute the work.

Question 9

Review engagements provide a moderate level of assurance.

Accepted Answer

A) True 
 B)False

Question 10

When providing assurance on internal control, the auditor provides a negative assurance report.

Accepted Answer

A) True 
 B)False

Question 11

This question relates to other public accounting services and reports. For each statement numbered 1 through 5, match the statement to the correct engagement or report (A through E) and place the identifying letter in the space provided.
A. A review engagement of the financial statements of a private company
B. A compilation engagement
C. A review of the interim financial statements of a public company
D. A report on financial statements prepared in accordance with an appropriate disclosed basis of accounting
E. Accuracy
____ 1. The information should be in accordance with to generally accepted accounting principles.
____ 2. In our opinion, the schedule of accounts receivable referred to above presents fairly, in all material respects.
____ 3. from information provided by management.
____ 4. As described in Note 2, these financial statements were prepared in accordance with accounting principles prescribed for School Boards in Ontario.
____ 5. does not constitute an audit and consequently I do not express an audit opinion.

Accepted Answer

1. A or C

What is meant by "audit of internal control over financial reporting?"

An accountant's communication on the financial statements in a compilation engagement would NOT include a statement that ________.

The primary purpose for the development of standards by the Criteria of Control Committee was to ________.

According to auditing standards, reportable matters ________.

The scope of a review engagement is ________.

Under CPA Canada rules, the auditor verifies the accuracy of management's internal controls statement just as he or she verifies the accuracy of financial statements.

The scope of a review engagement is similar to that of an audit.

Which of the following statements about a compilation engagement is NOT true?

Review engagements provide a moderate level of assurance.

When providing assurance on internal control, the auditor provides a negative assurance report.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters

Exam 17: Other Public Accounting Services and Reportsreviews and Compilations

What is meant by "audit of internal control over financial reporting?"

An accountant's communication on the financial statements in a compilation engagement would NOT include a statement that ________.

The primary purpose for the development of standards by the Criteria of Control Committee was to ________.

According to auditing standards, reportable matters ________.

The scope of a review engagement is ________.

Under CPA Canada rules, the auditor verifies the accuracy of management's internal controls statement just as he or she verifies the accuracy of financial statements.

The scope of a review engagement is similar to that of an audit.

Which of the following statements about a compilation engagement is NOT true?

Review engagements provide a moderate level of assurance.

When providing assurance on internal control, the auditor provides a negative assurance report.

Introduction to Auditing

Auditors Professional Roles and Responsibilities

Auditors Ethical and Legal Responsibilities

Reports on Audited Financial Statements

Preliminary Audit Planning: Understanding the Auditees Business

Assessing Risks in an Audit Engagement

Internal Control Over Financial Reporting

Audit Evidence and Assurance

Control Assessment and Testing

Audit Sampling

The Revenues, Receivables, and Receipts Process and Cash Account Balance

The Purchases, Payables, and Payments Process

Payroll and Production Processes

The Finance and Investment Process

Completing the Audit Work

Applying Professional Judgment to Form the Audit Opinion and Issue Theaudit Report

Professional Rules of Conduct Details and Auditor Responsibilities

Part I the Audit of Accounting Estimates: Basic Material Relating to Accountingestimates

Legal Liability Cases

Other Professional Accounting Services and Reports, Including Fraud

Filters