1.What is the best way for a plaintiff to establish legal liability for a CPA:

a.Prove the CPA made an untrue statement

b.Demonstrate shortcomings in the CPA's engagement planning

c.Show that the CPA's fees were higher than typical fees paid in the CPA's geographical area

d.Prove causation (i.e. proximate cause)

e.Prove the CPA's continuing professional education was inappropriate for the types of clients in his practice

2.The least likely procedure you would perform on a compilation would be:

a.Gain an understanding of the client's industry

b.Prepare the client's financial statements

c.Obtain an engagement letter

d.Perform analytical procedures

e.Prepare trial balance

3.You are performing a compilation of a client's financial statements and notice a departure from GAAP.Your compilation report will be

a.Qualified if departure is not pervasive

b.Adverse if departure is pervasive

c.Unmodified with appropriate footnote disclosure

d.Prepared to include a discussion of the departure in a separate paragraph of the compilation report

e.None of the above

4.You are not independent with respect to a client.The client wants you to perform a compilation of their annual financial statements.

a.You can issue a compilation report providing you include a paragraph in the compilation report explaining your lack of independence

b.You can issue a compilation report providing the independence matter is deemed material but not pervasive

c.You cannot issue a compilation report

d.You can issue a compilation report providing the fee is less than $3,000

e.None of the above