17) Which report provides the highest form of assurance?

a. Report on an examination

b. Report on a compilation

c. Report on a review

d. Report on agreed-upon procedures

18) An audit of internal control begins with

a. The audited financial statements

b. A draft trial balance

c. Inquiry of subsequent events

d. Managements report on internal control

19) Required information Which assertion is generally most difficult to attest to with respect to personal financial statements?

a. Valuation

b. Existence

c. Completeness

d. Rights and obligations

20) A CPAs report on projected financial statements should include a

a. Describes the limitations on the usefulness of the presentation

b. Provides an explanation of the differences between an examination and an audit

c. States that the CPA is responsible for events and circumstances up to one year after the reports date

d. Claims the assumptions do not provide a reasonable basis for the projection

21) Accepting an engagement to examine an entitys financial projection most likely would be appropriate if the projection were to be distributed to

a. All employees who work for the entity

b. All stockholders who request a copy of a prospectus

c. A bank with which the entity is negotiating for a loan

d. All stockholders of record as of the report date