AFSB 152 ACTUAL PAPER WITH SOLVED
QUESTIONS
◉ Little Miller Acts
Answer: State laws similar to the Miller Act for state/local public
projects.
◉ Mechanic's lien law
Answer: State law allowing unpaid labor/material suppliers to file
liens against real estate.
◉ First-tier claimant
Answer: Claimant contracting directly with the prime contractor.
◉ Second-tier claimant
Answer: Claimant contracting with a subcontractor, not directly
with the prime contractor.
◉ Interpleader
Answer: Lawsuit filed by surety when claims exceed payment
bond penal sum, asking court to distribute funds.
◉ Certified public accountant (CPA)
, Answer: Licensed accounting professional providing accounting
services.
◉ Public accountant (PA)
Answer: Practitioner providing accounting services.
◉ Audit
Answer: Highest level of service; provides reasonable assurance
financial statements are free from material misstatement.
◉ Review
Answer: Limited assurance based on inquiries and analytical
procedures.
◉ Compilation report
Answer: Unaudited statement based on management-provided
information; no assurance.
◉ Annual statement
Answer: Financial report as of the end of the fiscal or tax year.
◉ Interim financial statement
Answer: Quarterly or semiannual financial report within the fiscal
year.
QUESTIONS
◉ Little Miller Acts
Answer: State laws similar to the Miller Act for state/local public
projects.
◉ Mechanic's lien law
Answer: State law allowing unpaid labor/material suppliers to file
liens against real estate.
◉ First-tier claimant
Answer: Claimant contracting directly with the prime contractor.
◉ Second-tier claimant
Answer: Claimant contracting with a subcontractor, not directly
with the prime contractor.
◉ Interpleader
Answer: Lawsuit filed by surety when claims exceed payment
bond penal sum, asking court to distribute funds.
◉ Certified public accountant (CPA)
, Answer: Licensed accounting professional providing accounting
services.
◉ Public accountant (PA)
Answer: Practitioner providing accounting services.
◉ Audit
Answer: Highest level of service; provides reasonable assurance
financial statements are free from material misstatement.
◉ Review
Answer: Limited assurance based on inquiries and analytical
procedures.
◉ Compilation report
Answer: Unaudited statement based on management-provided
information; no assurance.
◉ Annual statement
Answer: Financial report as of the end of the fiscal or tax year.
◉ Interim financial statement
Answer: Quarterly or semiannual financial report within the fiscal
year.
