83.Joan Arch CPA is performing a preparation of financial statements engagement under AR-C 70. Which of the following is the type of report that must be issued for this type of engagement:

A.No report is issued in most cases

B.An abbreviated compilation report is issued

C.A special preparation report is issued

D.Joan has an option to issue either a compilation or review report for the preparation engagement

84.Rob Regan is performing a preparation of financial statements engagement under AR-C 70. Management refuses to include a legend for 'no assurance' on each page of the financial statements. What are the accountant's options under AR-C 70:

A.Accountant may type in his or her own legend on each page of the financial statements

B.Accountant should issue a disclaimer report

C.Accountant is not required to do anything as a preparation engagement is a plain- paper engagement

D.Accountant must withdraw from the engagement

85.Emma Rockwell is an accountant who is performing a preparation of financial statements engagement under AR-C 70. The GAAP financial statements omit a statement of cash flows which is a GAAP departure. Which of the following is true:

A.Emma is not required to do anything

B.Disclosure of the GAAP departure (omission of a statement of cash flows) must be made in a note to financial statements or on the face of the financial statements

C.A disclosure of the GAAP departure should not be disclosed on the face of the financial statements

D.A disclosure of the GAAP departure should not be disclosed in the notes to the financial statements

86.In determining materiality in a review engagement, SSARS No. 25 requires that the accountant should consider __________.

A.Quantitative factors

B.Qualitative factors

C.Both quantitative and qualitative factors

D.All significantly relevant factors

87.Which of the following is a change that SSARS No. 25 makes to the Accountant's Responsibility paragraph in the review report? Language that states __________.

A.The accountant is required to be independent

B.Management must take responsibility for the financial statements

C.Management has a choice of applicable frameworks

D.The accountant is required to perform analytical procedures and inquiries

88.Under the going-concern rules found in ASU 2014-15, which of the following terms is used by management in its assessment of an entity's ability to continue as a going concern:

A.Uncertainty

B.Substantial doubt

C.Severe uncertainty

D.Significant doubt

89.Marylou CPA is performing a review engagement on GAAP financial statements of Company Z. There was substantial doubt about Z's ability to continue as a going concern. However, through Z's plan, the substantial doubt has been alleviated and Z has adequate disclosure about the going- concern matter. How should Alice report on this situation:

A.Mary Lou must include an other-matter paragraph in her review report

B.Mary Lou must issue an adverse conclusion

C.Mary Lou may include an emphasis-of-matter paragraph

D.Mary Lou must issue a qualified conclusion

90.Steve is performing a review engagement. His review documentation should include all of the following except an (a) __________.

A.Engagement letter

B.Management representation letter

C.Copy of confirmation procedures performed

D.Copy of the reviewed financial statements and accountant's review report

91.SAS No. 134 replaces some existing AU-C sections and creates one new AU-C section. Which one of the following is a new AU-C section created by SAS No. 134:

A.AU-C 700A: Forming an Opinion and Reporting on Financial Statements

B.AU-C 701: Communicating Key Audit Matters in the Independent Auditor's Report

C.AU-C 705A: Modifications to the Opinion in the Independent Auditor's Report

D.AU-C 706A: Emphasis-of-Matter Paragraphs and Other-Matter Paragraphs in the Independent Auditor's Report

92.Harry CPA is performing an audit on GAAP general purpose financial statements. Harry concludes that the financial statements are presented fairly, in all material respects, in accordance with GAAP. Which type of opinion should Harry issue in accordance with AU-C 700A:

A.Qualified

B.Adverse

C.Disclaimer of opinion

D.Unmodified