12) A CPA added the following paragraph to its report: We were not independent with respect to XYZ company. What type of engagement was most likely performed?

An examination

An audit

A compilation

A review

13) Which of the following must be obtained in a review of a nonpublic company: Engagement Letter and Representation Letter.

a. No/Yes

b. Yes/No

c. Yes/Yes

d. No/No

14) When compiling financial statements, an accountant should

a. Review agreements for restrictions on cash

b. Understand the practices of the entitys industry

c. Inquire of key personnel about subsequent events

d. Perform ratio analyses of the financial data

15) When auditing a clients MD&A to be filed with the SEC, the CPA

(i) Must have audited the current years financial statement

(ii) Can say the statements are in conformity with the rules of the SEC

a. Only (i) is correct

b. Only (ii) is correct

c. Both (i) and (ii) are correct

d. Neither (i) nor (ii) is correct

16) Which of the following is for restricted use: Forecast and Projection

a. No/Yes

b. Yes/No

c. Yes/Yes

d. No/No