3. Which of the following statements should appear in a standard compilation report of a nonpublic company? (Points : 1)

The accountants are not aware of material modifications to be made to the financial statements.

The compilation consists only of inquiries of personnel and analytical procedures.

The compilation is limited to presenting information that is the representation of management.

The compilation is substantially less in scope than an audit in accordance with GAAP.

Question 4.4. For which of the following situations is a review report least likely to be issued under attestation standards? (Points : 1)

Criteria available only to specific users

Established criteria replaced by other criteria

Departure of criteria from subject matter

Significant scope limitation

Question 5.5. For which of the following engagements is there likely to be a consideration for confidentiality and privacy of a system? (Points : 1)

Financial statement audit

Internal control over reporting

Trust services

Website associate

Question 6.6. Regarding a review of the management discussion and analysis, what is typically included in the report? (Points : 1)

General use of the report

Restricted use of the report

Statement of disclaimer of opinion required

Statement of internal controls required

Question 7.7. Which of the following is least likely to be disclosed during an accountant's forecast engagement? (Points : 1)

Character of work performed

Major assumptions made

Probability of meeting estimates

Sources of information

Question 8.8. What would the accountant do during a review engagement where there is a client-imposed scope limitation? (Points : 1)

Issue a disclaimer of opinion

Resign from the engagement

Revisit the issue with other management who might provide the needed information

Review the past engagement to get needed information

Question 9.9. What is the accountant's responsibility regarding compiled financial statements when a third party will be relying on those statements? (Points : 1)

Accountants must issue a compilation report.

Accountants must issue a written engagement letter.

Accountants must mark each page as "Restricted for Management's Use Only."

Accountants must record all appropriate disclosures in the notes.

Question 10.10. What should an agreed-upon procedures report contain regarding the testing of procedures and findings contain? (Points : 1)

Acknowledgement of responsibility for sufficiency of procedures

Disclaimer of opinion on the financial statements

Negative assurance of not disclosing all conditions

Statement on restrictions on the use of the report

Question 11.11. Which of the following is typically omitted with a comfort letter to an investment banking firm? (Points : 1)

CPA's opinion on the compliance with applicable securities acts

Expression of negative assurance

Registration statement for the securities

Statement as to the auditor's independence

Question 12.12. Which of the following is a step that is used during a review engagement? (Points : 1)

Compare current and prior year balances

Confirm cash and accounts receivable

Examine board minutes for the entire year

Recalculate all depreciation entries

Question 13.13. For which of the following situations is it inappropriate to issue a modification of a compilation report? (Points : 1)

Where there is a departure from GAAP

Where there is a lack of auditor independence

Where there is inadequate financial statement disclosure

Where there is inconsistently applied GAAP

Question 14.14. Which attestation engagement is most closely related to a financial statement audit when considering the assurance provided? (Points : 1)

Agreed-upon procedures

Evaluation

Examination

Review

Question 15.15. What is the term used to describe reports provided shortly after the related information is released? (Points : 1)

Continuous auditing

Serial auditing

Simultaneous auditing

Systems reliability auditing

Question 16.16. Who is responsible for assumptions that are identified when preparing prospective financial statements? (Points : 1)

Client's independent auditor

Client's management

Reporting accounting firm

Third-party financial institution

Question 17.17. Which of the following principles is considered for verification of a reliable system in a Trust Services engagement? (Points : 1)

Control

Privacy

Relevance

Reliability

Question 18.18. What is the correct term for financial statements that are developed from information presented in audited financial statements? (Points : 1)

Agreed-upon procedure statements

Compiled financial statements

Reviewed financial statements

Summary financial statements

Question 19.19. What is the appropriate action to take when management of a nonpublic company refuses to correct a material departure from GAAP? (Points : 1)

Attach a note to explain the departure's effects

Disclose the departure in a separate paragraph

Issue an adverse opinion

Issue a compilation report

Question 20.20. For which type of report would the auditors express negative assurance? (Points : 1)

Audits on financial statements not based on GAAP

Audits of specific accounts

Letters for underwriters

Summary financial statements

Question 21.21. Which of the following standards is inapplicable when conducting an attestation examination engagement? (Points : 1)

Assertion

Independence

Subject matter

Suitable criteria

Question 22.22. Which of the following is the least acceptable form of association with prospective financial statements? (Points : 1)

Agreed-upon procedures

Compilation

Examination

Review

Question 23.23. Which of the following is unlikely to be considered an attestation engagement? (Points : 1)

Internal control examination for a nonpublic company

Management's discussion and analysis review

Services for elder care engagements

Services for SysTrust engagements

Question 24.24. Which standards do most of the new assurance services follow? (Points : 1)

Accounting Standards for Other Assurance Services

Generally Accepted Auditing Standards

International Auditing Standards

Standards for Attestation Services

Question 25.25. For which of the following parties is it unrequired for accountants to prepare a compilation report? (Points : 1)

Compilation reports should always be prepared

Management only

Management and third parties

Third parties only