1. Which of the following is unlikely to be considered an attestation engagement?
Internal control examination for a nonpublic company
Management's discussion and analysis review
Services for elder care engagements
Services for SysTrust engagements
2. Which standards do most of the new assurance services follow?
Accounting Standards for Other Assurance Services
Generally Accepted Auditing Standards
International Auditing Standards
Standards for Attestation Services
3. Regarding a review of the management discussion and analysis, what is typically included in the report?
General use of the report
Restricted use of the report
Statement of disclaimer of opinion required
Statement of internal controls required
4. What is the first step for reviewing financial statement data for a nonpublic company?
Assess the risks of material misstatements.
Make preliminary judgments about risk and materiality.
Perform an assessment of internal control activities.
Understand the client's organization and characteristics.
5. Which of the following is typically omitted with a comfort letter to an investment banking firm?
CPA's opinion on the compliance with applicable securities acts
Expression of negative assurance
Registration statement for the securities
Statement as to the auditor's independence
6. Which of the following would be least likely to be included in an engagement report for an agreed-upon procedures attestation?
Level of responsibility for procedures performed
Limited assurance on presented information
Summary of procedures performed
Use of the report is restricted
7. What is the appropriate action to take when management of a nonpublic company refuses to correct a material departure from GAAP?
Attach a note to explain the departure's effects
Disclose the departure in a separate paragraph
Issue an adverse opinion
Issue a compilation report
8. Which of the following is the least acceptable form of association with prospective financial statements?
Agreed-upon procedures
Compilation
Examination
Review
9. Which organization develops and communicates new assurance services to the accounting community?
Assurance Services Executive Committee
Attestation Standards Board
Auditing Standards Board
Council of Auditing Executives
10. Which of the following is least likely to be disclosed during an accountant's forecast engagement?
Character of work performed
Major assumptions made
Probability of meeting estimates
Sources of information
11. Which of the following statements is true regarding an engagement to apply agreed-upon procedures to the prospective financial statements?
Engagements can be used for forecasts but not projections
Professional standards do not allow these engagements
Report's use is restricted to specific users
Responsibility falls under the practitioner
12. For which of the following situations is it inappropriate to issue a modification of a compilation report?
Where there is a departure from GAAP
Where there is a lack of auditor independence
Where there is inadequate financial statement disclosure
Where there is inconsistently applied GAAP
13. Which of the following can an accountant report on regarding a prospective financial statement intended for general use?
Financial forecast
Financial projection
Partial presentation
Pro forma financial statement
14. What should auditors do when they have completed an audit and are subsequently asked to report on compliance with regards to certain contractual agreements?
Accept the engagement and provide reasonable assurance on compliance
Accept the engagement but provide negative assurance on compliance
Cannot accept the compliance engagement
Only accept the engagement when the contracts have been audited
15. What is the term used to describe reports provided shortly after the related information is released?
Continuous auditing
Serial auditing
Simultaneous auditing
Systems reliability auditing
16. If the income tax basis financial statements that were prepared are not titled correctly, what is the appropriate auditor action?
Explain the terminology in the notes to the statements
Issue a compilation report
Issue a disclaimer of opinion
Modify the report to disclose discomfort
17. For which of the following situations is a modification of a review report required?
A change in accounting principles
A change in an accounting estimate
A departure from GAAP
A substantial going concern issue
18. What should an agreed-upon procedures report contain regarding the testing of procedures and findings contain?
Acknowledgement of responsibility for sufficiency of procedures
Disclaimer of opinion on the financial statements
Negative assurance of not disclosing all conditions
Statement on restrictions on the use of the report
19. Which attestation engagement is most closely related to a financial statement audit when considering the assurance provided?
Agreed-upon procedures
Evaluation
Examination
Review
20. What is the correct term for an international information format designed for business information specifically?
ERP
Integrated Systems Format
XBRL
XML
21. Which type of service has a report where the use is limited to only specified parties?
Agreed-upon procedures
Audits
Compilations
Reviews
22. For which of the following engagements is there likely to be a consideration for confidentiality and privacy of a system?
Financial statement audit
Internal control over reporting
Trust services
Website associate
23. Which of the following statements is true regarding audit reports on tax-basis financial statements?
Emphasis-of-matter paragraph is omitted from the report
Financial statement purpose is disclosed in the notes
Modified opinions are the only appropriate reports
Use of the report does not have to be restricted
24. For which type of report is there a lack of explicit assurance?
Audits
Compilations
Examinations
Reviews
25. Which of the following is a step that is used during a review engagement?
Compare current and prior year balances
Confirm cash and accounts receivable
Examine board minutes for the entire year
Recalculate all depreciation entries