1.You receive a call from a long-term client. He tells you their controller recently died. From reviewing their files. they found multiple letters from the IRS to the company inquiring about missing tax returns and unpaid assessments. You review the letters and find the tax returns that your prepared were inaccurate and in some cases not filed. An IRS agent wants to interview your client, what should you do?

A. Accompany your client to the IRS interview and answer any questions.

B.Tell your client to not cooperate with the IRS agent.

C. you and your client hire the same lawyer

D. Advise your client to consult tax counsel.

2. Which of the following procedures should an accountant perform during a review engagement?

A. Communicate significant deficiencies discovered during an assessment of control risk

B. Send confirmation letters to financial institutions.

C. Examine Cash Disbursements made in the subsequent period for unrecorded Liabilites

D. Obtain a client representation letter from members of management.

3.The Accountant must obtain the following documentation during a review engagement.

A. Document procedures to detect fraud in a preparation engagement.

B. Document key internal accounting controls.

C. Obtain management representation in the form of a written management representation letter.

D. Document detail tests of transactions.

4. The accountant's responsibility to detect fraud in each of the following is: Non in a compilation engagement.

True

False