Question 16 (1 point)

What is the title of a compilation report?

Question 16 options:

	Opinion
	Criteria Schedule
	Engagement Report
	Notice to Reader

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Question 17 (1 point)

Which of the following procedures would most likely be conducted by an accountant during a compilation engagement?

Question 17 options:

	Enquire of management with respect to the purpose of new capital assets.
	Compare gross profit on a year-by-year basis over the last five years.
	Circularize negative accounts receivable confirmations.
	Assemble and recalculate the financial statement allocations.

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Question 18 (1 point)

Before performing a review of an entity's financial statements, an accountant should

Question 18 options:

	complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions.
	apply analytical procedures to provide limited assurance that no material modifications should be made to the financial statements.
	obtain a sufficient level of knowledge of the accounting principles and practices of the industry in which the entity operates.
	inquire whether management has omitted substantially all of the disclosures required by generally accepted accounting principles.

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Question 19 (1 point)

When conducting a review engagement, how is materiality calculated?

Question 19 options:

	materiality is not calculated as a lower level of assurance is being provided
	the concept of significance is used, rather than the concept of materiality
	always as a percentage of net income before income taxes
	in the same manner as an audit engagement

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Question 20 (1 point)

Which of the following is a professional standard that must be followed by an accountant when conducting a compilation engagement?

Question 20 options:

	work being adequately planned and properly executed
	having adequate technical training and proficiency in auditing
	obtaining an adequate understanding of the business and its industry
	documenting the processes used to compile and record transactions

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Question 21 (1 point)

A compilation presents information, in the form of financial statements, that is the representation of management. The public accountant who prepares the compilation undertakes to express

Question 21 options:

	limited assurance on the statements.
	minimal assurance on the statements.
	no assurance on the statements.
	full assurance on the statements.

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Question 22 (1 point)

Which of the following would be required in a compilation?

Question 22 options:

	an understanding between the client and the accountant for the services to be provided
	a formal engagement letter signed by the client
	management's acknowledgements for its responsibility with regards to the financial statements
	a confirmation of the auditor's independence

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Question 23 (1 point)

As part of the conduct of a review engagement, which of the following would be a typical procedure used for the assessment of the ending accounts receivable balance?

Question 23 options:

	circularization of positive confirmations to all balances exceeding materiality
	comparison of the age of the accounts receivable to the prior year
	use of negative confirmations on all large balances
	detailed examination of all accounts over 120 days to assess the bad debt allowance

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Question 24 (1 point)

Which of the following engagements would most likely be a compilation engagement?

Question 24 options:

	An engagement with respect to financial statements attached to a personal tax return.
	An engagement with respect to financial statements for a large public company.
	An engagement with respect to financial statements for a company that has a large bank loan.
	An engagement with respect to financial statements that accompany future-oriented information to obtain financing.

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Question 25 (1 point)

When is negative assurance used during a review engagement?

Question 25 options:

	when the standards applicable to a review engagement have been met
	if a qualification is required during the review engagement
	when the criteria associated with a review engagement have not been satisfied
	when the practitioner is unable to set appropriate criteria for the review engagement

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Question 26 (1 point)

As part of the conduct of a review engagement, which of the following procedures would be appropriate for assessing the ending value of accounts payable?

Question 26 options:

	sending zero-balance confirmations to frequently used suppliers
	use of negative confirmations to suppliers with material balances
	comparison of the accounts payable balances by supplier to the prior year
	examination of invoices received after the year-end to ensure that they were recorded in the proper period

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Question 27 (1 point)

Why is it important for the review engagement report to state that the review is not an audit?

Question 27 options:

	to make sure that the public accountant is not sued
	to clarify that only review engagement procedures were used during the engagement
	to make users aware that a review provides a lower level of assurance
	so that the user does not ask any unnecessary questions about the engagement

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Question 28 (1 point)

When assessing the plausibility of the financial statements for a review engagement, the auditor will use which of the following criteria for auditing a small, privately held company?

Question 28 options:

	standards of efficiency and effectiveness
	the audit objectives associated with the audit of financial statements
	an acceptable reporting framework such as ASPE
	an enterprise risk-management framework to help detect fraud

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Question 29 (1 point)

Which of the following items includes criteria for accepting a compilation engagement?

Question 29 options:

	evaluation of whether the financial statements are in accordance with ASPE
	no reason to believe that the financial statements are false or misleading
	completion of an independence threat analysis, ensuring that there are no threats to independence
	completion of a client risk analysis with the conclusion that risks are low

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Question 30 (1 point)

The level of assurance that is provided by the public accountant on a compilation report is

Question 30 options:

	none.
	low.
	medium.
	high.