According to the AICPA Statements on Standards for Attestation Engagements, a public accounting firm should establish quality control policies to provide assurance about which of the following matters related to agreed- upon procedures engagements? A. Use of the report is restricted. O B. The public accounting firm takes responsibility for the sufficiency of procedures. C. The practitioner is independent from the client and other specified parties. O D. The practitioner sets the criteria to be used in the determination of findings.The report resulting from an engagement to apply agreed-upon procedures related to the nancial statements will generally include O A. A statement that users are responsible for determining whether the procedures are appropriate. 0 B. A statement that the report is restricted. O C. A statement that nothing came to the practitioner's attention that indicates a material misstatement. O D. A disclaimer of opinion on the effectiveness of the entity's internal controls. A government internal audit function is presumed to be free from organizational independence impairments for reporting internally when the head of the organization 0 A. Is not accountable to those charged with governance. 0 B. Performs auditing procedures that are consistent with generally accepted accounting principles. O C. Is a line-manager of the unit under audit. 0 D. ls removed from political pressures to conduct audits objectively, without fear of political reprisal. The GAO standards of reporting for governmental nancial audits incorporate the AICPA standards of reporting and prescribe supplemental standards to satisfy the unique needs of governmental audits. Which of the following is a supplemental reporting standard for governmental financial audits? O A. Auditors should report the scope of their testing of compliance with laws and regulations and of internal controls. 0 B. Material indications of noncompliance (illegal acts) should be reported in a document distributed only to the entity's senior ofcials. O C. All changes in the audit program from the prior year should be reported to the entity's audit committee. 0 D. Any privileged or confidential information discovered should be reported to the organization that arranged for the audit. An entity has failed to provide documentation for a newly acquired material asset and informs its auditors that the documentation is lost. According to generally accepted government auditing standards, what would this situation typically indicate to the auditors? O A. Fraudulent activity. 0 B. Abusive activity. 0 C. Misappropriation of assets. 0 D. A heightened risk of fraud. In performing a nancial statement audit in accordance with Government Auditing Standards, an auditor is required to report on the entity's internal control. This report should 0 A. Describe the scope of the auditor's testing of internal control. 0 B. Describe the laws and regulations that the entity must comply with. O C. Provide an opinion on the effectiveness of internal control. 0 D. Indicate that the auditor does not possess legal skills and cannot make legal judgments. In accordance with Ofce of Management and Budget audit requirements for audits of non-Federal entities expending Federal awards, which of the following statements is accurate regarding Federal awards expended? O A. Donated surplus property cannot be valued at the assessed value provided by the federal agency. 0 B. Food stamps cannot be valued at fair market value at the time of receipt. 0 C. Government loans are classied as noncash assistance programs. 0 D. Free rents received as part of an award to carry out a federal program are treated as federal funds expended. A CPA is required to comply with the provisions of Statements on Standards for Attestation Engagements when engaged to A. Provide assurance on investment performance statistics prepared by an investment company on established criteria. B. Issue a letter for an underwriter, also known as a comfort letter, to a broker or dealer of securities. C. Compile financial statements in conformity with a comprehensive basis of accounting other than GAAP. D. Communicate with an audit committee regarding management's consultations with another CPA.Which of the following professional services would be considered an attestation engagement? O A. Advocating on behalf of a client about trust tax matters under review by the Internal Revenue Service. 0 B. Providing nancial analysis, planning, and capital acquisition services as a parttime, in-house controller. 0 C. Advising management in the selection of a computer system to meet business needs. 0 D. Examining the income statement and balance sheet for one year in the future based on client expectations and predictions. Which of the following sets of standards do not apply to any form of attest engagements? O A. Statements on Standards for Consulting Services. 0 B. Statements on Standards for Accounting and Review Services. 0 C. Statements on Quality Control Standards. 0 D. Statements on Auditing Standards