Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

When should reviews of interim financial information be performed?

Accepted Answer

Review procedures should be performed at

Question 3

List three matters which the auditor is responsible for reporting on to the audit committee of a public company.

Accepted Answer

Any three of:
i.Independent auditors' re

Question 4

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 5

Which of the following best describes a CPA's engagement to report on an entity's internal controls over financial reporting?

Accepted Answer

A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
C) A prospective engagement to project,for a period of time not to exceed one year,and report on the expected benefits of the entity's internal control structure. 
D) A consulting engagement to provide constructive advice to the entity on its internal control system. 
A) An assurance engagement to examine and report on management's written assertions about the effectiveness of its internal control system. 
B) An audit engagement to render an opinion on the entity's internal control system. 
C) A prospective engagement to project,for a period of time not to exceed one year,and report on the expected benefits of the entity's internal control structure. 
D) A consulting engagement to provide constructive advice to the entity on its internal control system.

Question 6

Review engagements involve both substantive and compliance testing.

Accepted Answer

A) True 
 B)False

Question 7

Auditors are obligated to search for "reportable matters."

Accepted Answer

A) True 
 B)False

Question 8

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

Accepted Answer

A) True 
 B)False

Question 9

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

Accepted Answer

A) adverse opinion 
B) qualified opinion for a GAAP departure 
C) clean opinion 
D) clean opinion with an emphasis of matter paragraph 
A) adverse opinion 
B) qualified opinion for a GAAP departure 
C) clean opinion 
D) clean opinion with an emphasis of matter paragraph

Question 10

George Wilson CPA is on the board of directors of a small manufacturing company,Smith Plastics,Inc.The president of the company,John Smith,has asked George to prepare financial statements for the company to be submitted to Vancouver Dominion Bank as part of a loan request.Mr.Smith tells George that the bank would like a review or an audit,but would settle for a compilation from a CPA.He would like George to do the compilation.
Required:
Under what conditions,if any,would George Wilson be allowed to compile the financial statements of Smith Plastics,Inc.?

Accepted Answer

George Wilson is not independent of Smit

Question 11

A review engagement provides ________ assurance that the financial statements are fairly presented.

Accepted Answer

A) conclusive 
B) reasonable or high 
C) no 
D) negative or limited 
A) conclusive 
B) reasonable or high 
C) no 
D) negative or limited

Question 12

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

Accepted Answer

A) True 
 B)False

Question 13

All of the following would normally form part of the working papers for an interim financial information review,EXCEPT FOR:

Accepted Answer

A) An engagement letter. 
B) A memoranda of inquiries and discussions. 
C) A letter of inquiry to the client's lawyer. 
D) A management representation letter. 
A) An engagement letter. 
B) A memoranda of inquiries and discussions. 
C) A letter of inquiry to the client's lawyer. 
D) A management representation letter.

Question 14

A review engagement consists primarily of enquiry,analytical procedures,and discussion.

Accepted Answer

A) True 
 B)False

Question 15

Why is having sufficient knowledge of the client's business and industry is critical to performing a proper review of the client's statements?

Accepted Answer

A) To provide reasonable assurance that the financial statements are free of material misstatement. 
B) To determine the proper sample size for substantive test procedures to be performed. 
C) To assess the plausibility of the information reported. 
D) To support the opinion expressed in the review engagement report. 
A) To provide reasonable assurance that the financial statements are free of material misstatement. 
B) To determine the proper sample size for substantive test procedures to be performed. 
C) To assess the plausibility of the information reported. 
D) To support the opinion expressed in the review engagement report.

Question 16

An accountant's review engagement report would NOT include a statement that ________.

Accepted Answer

A) the engagement was performed in accordance with generally accepted auditing standards (GAAS) 
B) an accountant reviews information supplied by the company 
C) a review does not constitute an audit and an audit opinion is not expressed on the financial statements 
D) the accountant is not aware of any material departure from generally accepted accounting standards (GAAP) 
A) the engagement was performed in accordance with generally accepted auditing standards (GAAS) 
B) an accountant reviews information supplied by the company 
C) a review does not constitute an audit and an audit opinion is not expressed on the financial statements 
D) the accountant is not aware of any material departure from generally accepted accounting standards (GAAP)

Question 17

Few,if any,procedures are performed during a compilation engagement.

Accepted Answer

A) True 
 B)False

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

When should reviews of interim financial information be performed?

List three matters which the auditor is responsible for reporting on to the audit committee of a public company.

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.

Which of the following best describes a CPA's engagement to report on an entity's internal controls over financial reporting?

Review engagements involve both substantive and compliance testing.

Auditors are obligated to search for "reportable matters."

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

A review engagement provides ________ assurance that the financial statements are fairly presented.

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

All of the following would normally form part of the working papers for an interim financial information review,EXCEPT FOR:

A review engagement consists primarily of enquiry,analytical procedures,and discussion.

Why is having sufficient knowledge of the client's business and industry is critical to performing a proper review of the client's statements?

An accountant's review engagement report would NOT include a statement that ________.

Few,if any,procedures are performed during a compilation engagement.

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

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

When should reviews of interim financial information be performed?

List three matters which the auditor is responsible for reporting on to the audit committee of a public company.

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.

Which of the following best describes a CPA's engagement to report on an entity's internal controls over financial reporting?

Review engagements involve both substantive and compliance testing.

Auditors are obligated to search for "reportable matters."

Interim financial information is a basic and necessary element of financial statements that conform to GAAP.

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be a(n)________.

A review engagement provides ________ assurance that the financial statements are fairly presented.

An accountant who is not independent can compile financial statements for a private company as long as the fact of lack of independence is disclosed in the body of the report.

All of the following would normally form part of the working papers for an interim financial information review,EXCEPT FOR:

A review engagement consists primarily of enquiry,analytical procedures,and discussion.

Why is having sufficient knowledge of the client's business and industry is critical to performing a proper review of the client's statements?

An accountant's review engagement report would NOT include a statement that ________.

Few,if any,procedures are performed during a compilation engagement.

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