Ch 1 - Principles of Auditing & Other Assurance Services
With Complete Questions And Correct Answers
Assurance - (ANSWERS)Describes the broad range of information
enhancement services that are provided by certified public accountants
(cpas)
Assurance Services auditors provide - (ANSWERS)Audits of fainancial
Statements
Examinations of Internal Control
Trust Services, E.G., webtrust and systrust
Reviews of Financial Statements or Other Information
Agreed-Upon Procedures Engagements
CPA primeplus/Elder Care Services
XBRL Services
Nonassurance Services auditors provide - (ANSWERS)Tax Services
Management Consulting Services
Fraud investigations
Information technology Consulting
Bookkeeping/General Accounting
Two types of assurance services - (ANSWERS)Those that increase
reliability of information (ex: audit & assurance services)
Those that put information into a form or context that facilitates decision
making (ex: tax)
Attestation services - (ANSWERS)A major subset of assurance services
that provides assurance as to it's reliability
1/9
, Ch 1 - Principles of Auditing & Other Assurance Services
With Complete Questions And Correct Answers
Attest engagement - (ANSWERS)A practitioner is engaged to issue or does
issue an examination, a review, or an agreed upon procedures report on
subject matter or an assertion about subject matter that is the responsibility
of another party (e.g. Management)
Three forms of attest engagement - (ANSWERS)1. An examination,
referred to as an audit when it involves historical financial statements,
provides highest form of assurance that cpas can offer.
2. A review is substantially lessor in scope of procedures than an
examination and is designed to lend only a moderate/limited degree of
assurance.
3. An agreed-upon procedure engagement results in a report by the CPA
that describes those procedures and their findings.
Examination Form of Attestation - (ANSWERS)Level of Assurance
Provided - High
Risk of Material Misstatement - Low
Nature of Assurance in Report - "In our Opinion..." Procedures - Select
from all available procedures any combination that can limit attestation risk
to a low level.
Review Form of Attestation - (ANSWERS)Level of Assurance Provided -
Moderate (Limited)
Risk of Material Misstatement - Moderate
Nature of Assurance in Report - "We are not aware of any material
2/9
With Complete Questions And Correct Answers
Assurance - (ANSWERS)Describes the broad range of information
enhancement services that are provided by certified public accountants
(cpas)
Assurance Services auditors provide - (ANSWERS)Audits of fainancial
Statements
Examinations of Internal Control
Trust Services, E.G., webtrust and systrust
Reviews of Financial Statements or Other Information
Agreed-Upon Procedures Engagements
CPA primeplus/Elder Care Services
XBRL Services
Nonassurance Services auditors provide - (ANSWERS)Tax Services
Management Consulting Services
Fraud investigations
Information technology Consulting
Bookkeeping/General Accounting
Two types of assurance services - (ANSWERS)Those that increase
reliability of information (ex: audit & assurance services)
Those that put information into a form or context that facilitates decision
making (ex: tax)
Attestation services - (ANSWERS)A major subset of assurance services
that provides assurance as to it's reliability
1/9
, Ch 1 - Principles of Auditing & Other Assurance Services
With Complete Questions And Correct Answers
Attest engagement - (ANSWERS)A practitioner is engaged to issue or does
issue an examination, a review, or an agreed upon procedures report on
subject matter or an assertion about subject matter that is the responsibility
of another party (e.g. Management)
Three forms of attest engagement - (ANSWERS)1. An examination,
referred to as an audit when it involves historical financial statements,
provides highest form of assurance that cpas can offer.
2. A review is substantially lessor in scope of procedures than an
examination and is designed to lend only a moderate/limited degree of
assurance.
3. An agreed-upon procedure engagement results in a report by the CPA
that describes those procedures and their findings.
Examination Form of Attestation - (ANSWERS)Level of Assurance
Provided - High
Risk of Material Misstatement - Low
Nature of Assurance in Report - "In our Opinion..." Procedures - Select
from all available procedures any combination that can limit attestation risk
to a low level.
Review Form of Attestation - (ANSWERS)Level of Assurance Provided -
Moderate (Limited)
Risk of Material Misstatement - Moderate
Nature of Assurance in Report - "We are not aware of any material
2/9
