The following questions relate to assurance services.

a. Which of the following is not true of a direct reporting assurance engagement?

(1) There are no management representations.

(2) There are only two parties in a direct reporting engagement: the practitioner and the user(s).

(3) The criteria should be identified.

(4) The engagement team is likely to include nonaccountants.

b. The greatest concern to the public accountant in a future- oriented financial information (FOFI) engagement is

(1) that management's projections may not be met.

(2) that users may believe that the public accountant's involvement ensures that the prospectus results will be achieved.

(3) that management assumptions are not reasonable.

(4) that the appropriate standards were followed in preparing the FOFI.

c. Which of the following engagements is not appropriate under Section 5805?

(1) Audit of sales in a specific location of a chain of stores.

(2) Audit of sales of a product produced under license.

(3) Audit of attendance at a rock concert.

(4) Compliance with a debt covenant.

d. Which of the following statements best describes negative assurance?

(1) The public accountant states that in his/her opinion the plausibility of the financial statements is not in doubt.

(2) The public accountant states that there is no reason to not accept the plausibility of the financial statements.

(3) The public accountant states that in his/her opinion the financial statements are plausible.

(4) The public accountant states that there is a low probability the financial statements are not plausible.