Audit and Assurance Services test 1

c) Only to those CPAs who choose to have quality reviews d) only to CPAs conducting audits subject to AICPA jurisdiction - correct answer B audit standards require that the engagement partner a) examine all available corroborating evidence b) be responsible for the assignments of tasks to and supervision of, assistants c) review evidence and audit documentation once the report has been issued d) design the audit to detect all instances of noncompliance with laws and regulations having direct effects on the determination of material financial statement amounts and disclosures - correct answer B several sources of US GAAP consulted by an auditor are in conflict as to the application of an accounting principle. Which of the following should the auditor consider the most authoritative a) FASB Accounting standards codification b) IFRS C) FASB statements of financial accounting concepts d) AICPA issues papers - correct answer A which of the following services, if any, may an accountant who is not independent provide a) preparations and complications but not reviews b) reviews but not prparations c) both compilations and reviews d) no services - correct answer A statments on the standards for accounting and review services establish standards and procedures for which of the following engagements a) assisting in adjusting the books of account for a partnership b) reviewing interim financial information required to be filed by public companies with the SEC c) processing financial data for clients of other accounting firms d) compiling an individual's personal financial statement to be used to obtain a mortgage - correct answer D a CPA in public practice is required to comply with the provisions of the statements on standards for accounting and review services is when Advising a client regarding advocating a the selection of computer client's position software before the IRS a) yes yes b) yes no c) no yes d) no no - correct answer D for the purpose of SSARSs, which of the following is a nonissuer a) one whose securities trade on a stock exchange or over the counter, including securities quoted only regionally or locally b) one that makes a filing with a regulatory agency in preparation for a sale of any class of securities to the public c) a subsidiary, corporate joint venture, or other entity controlled by an issuer d) a closely held corporation - correct answer D in performing an attess engagement, a CPA most likely a) supplies litigation support services b) assesses the risks of material misstatement c) expresses an opinion or conclusion about a written assertion d) provides management consulting advice - correct answer C which of the following professional services is considered an attest engagement a) a consulting service engagement to provide computer advice to a client b) an engagement to report on compliance with statutory requirements c) an income tax engagement to prepare federal and state tax returns d) the compilation of an engagement to provide a peer review for another CPA firm - correct answer B which of the following is the authoritative body designated to promulgate attestation standards? a) auditing standards board b) governmental accounting standards board c) financial accounting standards board d) government accountability office - correct answer A the practitioner's report on the examination of prospective financial statements should include all of the following except a) an ID of the prospective financial statements presented and a statement that the examination was made in accordance with AICPA attestation standards b) a statement that the practitioner assumes no responsibility to update the report for events and circumstances after the report date c) the practitioner's opinion that the statements are in conformity with AICPA presentation guidelines and that the underlying assumptions provide a reasonable basis for the forecast d) the practitioner's opinion that the prospective results will be attained - correct answer D assurance and advisory services are best described as a) services designed for the improvement of operations, resulting in better outcomes b) independent professional services that improve the quality of information, or its context, for decision makers c) the assembly of financial statements based on information and assumptions of a reasonable party d) services designed to express an opinion on historical financial statements based on the results of an audit - correct answer B assurance services differ from consulting services in that assurance services focus on providing involve monitoring advice of one party by another a) yes yes