Question 1

To bridge the gap between a changing business environment and the guidance that was then available,the IIA developed a Professional Practices Framework.This framework consists of two broad categories of guidance.List these categories of guidance and what they include.

Accepted Answer

The answer of To bridge the gap between a changing...

Question 2

In your own words,describe how the Institute of Internal Auditors (IIA)defines internal auditing?

Accepted Answer

The answer of In your own words,describe how the Institute...

Question 3

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.

Question 4

Compilations provide which of the following types of assurance about the fair presentation of financial statements?

Accepted Answer

A)  No assurance. 
B)  Negative assurance. 
C)  Limited assurance. 
D)  Reasonable assurance.

Question 5

Which of the following would be considered a part of a consulting services (non-assurance)engagement?
I.Expressing a conclusion about the reliability of a client's financial statements.
II.Reviewing and commenting on a client-prepared business plan.

Accepted Answer

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

Question 6

Which set of standards was created by the AICPA to cover services relating to unaudited financial statements?

Accepted Answer

A)  Standards on Selective Audits and Review Services (SSARS). 
B)  Statement on Auditing Standards (SAS). 
C)  Statements on Compilation and Review Standards (SCRS). 
D)  Statements on Standards for Accounting and Review Services (SSARS).

Question 7

Snow,CPA,was engaged by Master Co.,a privately-held company,to examine and report on management's written assertion about the effectiveness of Master's internal control over financial reporting.Snow's report should state that

Accepted Answer

A)  Because of inherent limitations of any internal controls, errors or fraud may occur and not be detected. 
B)  Management's assertion is based on criteria established by the American Institute of Certified Public Accountants. 
C)  The results of Snow's tests will form the basis for Snow's opinion on the fairness of Master's financial statements in conformity with GAAP. 
D)  The purpose of the engagement is to enable Snow to plan an audit and determine the nature, timing, and extent of tests to be performed.

Question 8

Blue Co.,a privately-held entity,asked its tax accountant,Cook,a CPA in public practice,to reproduce Blue's internally-prepared interim financial statements on Cook's computer when Cook prepared Blue's quarterly tax return.Cook should not submit these financial statements to Blue unless,at a minimum,Cook complies with the provisions of

Accepted Answer

A)  Statements on Responsibilities in Tax Practice. 
B)  Statements on Standards for Accounting and Review Services. 
C)  Statements on Responsibilities in Unaudited Financial Services. 
D)  Statements on Standards for Attestation Engagements.

Question 9

Match the Trust Services Principle with its proper definition.

Accepted Answer

The answer of Match the Trust Services Principle with its...

Question 10

An examination of a financial forecast is a professional service that involves

Accepted Answer

A)  Compiling or assembling a financial forecast that is based on management's assumptions. 
B)  Limiting the distribution of the accountant's report to management and the board of directors. 
C)  Assuming responsibility to update management on key events for one year after the report's date. 
D)  Evaluating the preparation of a financial forecast and the support underlying management's assumptions.

Question 11

A CPA's report on agreed-upon procedures related to management's assertion about an entity's compliance with specified requirements should contain

Accepted Answer

A)  A statement of limitations on the use of the report. 
B)  An opinion about whether management's assertion is fairly stated. 
C)  Negative assurance that control risk has not been assessed. 
D)  An acknowledgement of responsibility for the sufficiency of the procedures.

Question 12

Limited assurance is provided in

Accepted Answer

A)  An audit engagement. 
B)  A compilation engagement. 
C)  A review engagement. 
D)  None of the above.

Question 13

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.

Question 14

Inquiry of the entity's personnel and analytical procedures are the primary bases for the issuance of a(n)

Accepted Answer

A)  Compilation report on financial statements for a nonpublic company in its first year of operations. 
B)  Auditor's report on financial statements supplemented with price-level information. 
C)  Review report on comparative financial statements for a nonpublic company in its second year of operations. 
D)  Management advisory report prepared at the request of the client's audit committee.

Question 15

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.

Question 16

Reasonable assurance is provided in

Accepted Answer

A)  An audit engagement. 
B)  A compilation engagement. 
C)  A review engagement. 
D)  None of the above.

Question 17

Match the attestation standard with the generally accepted auditing standard that is most similar in nature.

Accepted Answer

The answer of Match the attestation standard with the generally...

Question 18

Limited assurance is provided in a review engagement.

Accepted Answer

A) True 
 B)False

Question 19

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.

Question 20

The type of report issued under a PrimePlus assurance engagement is likely which of the following?

Accepted Answer

A)  Unqualified. 
B)  Assurance. 
C)  Audit. 
D)  Agreed-upon procedures.

Exam 21: Assurance,Attestation,and Internal Auditing Services