Question 1

An auditor is most concerned that interim financial statements are not misleading relative to ________.

Accepted Answer

A) the prior year's interim financial statements 
B) the annual report 
C) pro forma financial statements 
D) the prior year's annual financial statements 
A) the prior year's interim financial statements 
B) the annual report 
C) pro forma financial statements 
D) the prior year's annual financial statements B

Question 2

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a private company?

Accepted Answer

A) Communicate internal control system weaknesses that were discovered during the assessment of control risk. 
B) Obtain a letter of representation signed by top-level management. 
C) Send bank confirmations to the company's financial institutions. 
D) Examine cash disbursements in the subsequent period for evidence of unrecorded liabilities. 
A) Communicate internal control system weaknesses that were discovered during the assessment of control risk. 
B) Obtain a letter of representation signed by top-level management. 
C) Send bank confirmations to the company's financial institutions. 
D) Examine cash disbursements in the subsequent period for evidence of unrecorded liabilities. B

Question 3

If a PA prepares a statement of financial condition for an individual,a standard disclaimer must be attached to it,even if it is only for the client's personal use.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Auditing standards apply to work on all audited financial statements but not to work on other assurance engagements.

Accepted Answer

A) True 
 B)False

Question 6

In a compilation engagement,the accountant performs no audit procedures.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Substantive and compliance testing are applicable to ________.

Accepted Answer

A) audits only 
B) reviews and audits 
C) compilations and audits 
D) reviews and compilations 
A) audits only 
B) reviews and audits 
C) compilations and audits 
D) reviews and compilations

Question 9

Financial statements must be presented fairly as a result of a compilation engagement.

Accepted Answer

A) True 
 B)False

Question 10

Donna Prima,CPA,was engaged to review the financial statements of Rooster Restaurants,Inc. ,a private company.During her review,Donna found that Rooster had not capitalized leases as required under GAAP.The result was so material,that Donna modified the standard review report to state that "the financial statements are not in accordance with GAAP."
Required:
Is Prima's report in accordance with professional standards? If not,what should she have done under the circumstances? Explain.

Accepted Answer

Prima's report is not strictly in accord

Question 11

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

Accepted Answer

This refers to the direct reporting audi

Question 12

Review engagements provide a moderate level of assurance.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

Accepted Answer

A) True 
 B)False

Question 16

With compilation engagements,the minimum standard is that financial statements ________.

Accepted Answer

A) not be false or misleading 
B) be accurate 
C) be fairly presented 
D) be prepared in accordance with GAAP 
A) not be false or misleading 
B) be accurate 
C) be fairly presented 
D) be prepared in accordance with GAAP

Question 17

The scope of the examination of internal controls in an internal control audit is the same as the scope of examination performed as part of the financial statement audit.

Accepted Answer

A) True 
 B)False

Question 18

In a compilation engagement,the financial statements must at least comply with GAAP.

Accepted Answer

A) True 
 B)False

Question 19

What does the extent of review procedures of interim financial information depend on?

Accepted Answer

The extent of these procedures depends o

Question 20

With a compilation service,the procedures performed by a professional accountant can be described as ________.

Accepted Answer

A) extensive 
B) few,if any 
C) comparable to a review service 
D) comparable to an audit 
A) extensive 
B) few,if any 
C) comparable to a review service 
D) comparable to an audit

An auditor is most concerned that interim financial statements are not misleading relative to ________.

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a private company?

If a PA prepares a statement of financial condition for an individual,a standard disclaimer must be attached to it,even if it is only for the client's personal use.

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

Auditing standards apply to work on all audited financial statements but not to work on other assurance engagements.

In a compilation engagement,the accountant performs no audit procedures.

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

Substantive and compliance testing are applicable to ________.

Financial statements must be presented fairly as a result of a compilation engagement.

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

Review engagements provide a moderate level of assurance.

According to auditing standards,reportable matters ________.

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

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

With compilation engagements,the minimum standard is that financial statements ________.

The scope of the examination of internal controls in an internal control audit is the same as the scope of examination performed as part of the financial statement audit.

In a compilation engagement,the financial statements must at least comply with GAAP.

What does the extent of review procedures of interim financial information depend on?

With a compilation service,the procedures performed by a professional accountant can be described as ________.

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 the Audit Report

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, including Fraud Auditing

Filters

Exam 17: Other Public Accounting Services and Reportsreviews and Compilations

An auditor is most concerned that interim financial statements are not misleading relative to ________.

Which of the following procedures should an accountant perform during an engagement to review the financial statements of a private company?

If a PA prepares a statement of financial condition for an individual,a standard disclaimer must be attached to it,even if it is only for the client's personal use.

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

Auditing standards apply to work on all audited financial statements but not to work on other assurance engagements.

In a compilation engagement,the accountant performs no audit procedures.

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

Substantive and compliance testing are applicable to ________.

Financial statements must be presented fairly as a result of a compilation engagement.

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

Review engagements provide a moderate level of assurance.

According to auditing standards,reportable matters ________.

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

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

With compilation engagements,the minimum standard is that financial statements ________.

The scope of the examination of internal controls in an internal control audit is the same as the scope of examination performed as part of the financial statement audit.

In a compilation engagement,the financial statements must at least comply with GAAP.

What does the extent of review procedures of interim financial information depend on?

With a compilation service,the procedures performed by a professional accountant can be described as ________.

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 the Audit Report

Professional Rules of Conduct Details and Auditor Responsibilities

The Audit of Accounting Estimates: Basic Material Relating to Accounting Estimates

Legal Liability Cases

Other Professional Accounting Services and Reports, including Fraud Auditing

Filters