Principles of Auditing & Other Assurance Services Exam Questions and Correct Answers (Already
Passed)
Assurance Services - Answers Professional services that enhance the quality of information, or its
context, for decision makers.
Agreed-upon Procedures Engagement - Answers An attest engagement in which the CPAs agree to
perform procedures for a specified party and issue a report that is restricted to use by that party.
American Institute of Certified Public Accountants (AICPA) - Answers The national professional
organization of CPAs engaged in promoting high professional standards to ensure that CPAs serve the
public interest.
Applicable Financial Reporting Framework - Answers The financial reporting framework adopted by
management and, where appropriate, those charged with governance in the preparation of the financial
statements that is acceptable in view of the nature of the entity and the objective of the financial
statements, or that is required by law or regulation. The term "fair presentation framework" is used to
refer to a financial reporting framework that requires compliance with the requirements of the
framework and:
Assertion - Answers A representation or declaration made by the responsible party, typically
management of the entity.
Attest Engagement - Answers An engagement in which the CPAs 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)
Audit Committee - Answers A subcommittee of the board of directors that is responsible for overseeing
both the internal audit function and the annual financial statement audit by independent CPAs
Audit of Financial Statements - Answers An examination designed to provide an opinion, the CPAs
highest level of assurance that the financial statements follow GAAP or another acceptable basis of
accounting.
Compliance Audit - Answers An audit to measure the compliance of the organization with some
established criteria (e.g. laws and regulations, or internal control policies and procedures)
Dodd-Frank Act (the Wall Street Reform and Consumer Protection Act) - Answers A U.S. federal law that
increases federal government regulation of the financial industry. the legislation, enacted in July 2010,
aims to prevent a major financial crisis by creating new financial regulatory processes that are aimed at
enforcing transparency and accountability while implementing rules for consumer protection. the act
also expands the public company accounting oversight board's authority to oversee audits of brokers
and dealers
Passed)
Assurance Services - Answers Professional services that enhance the quality of information, or its
context, for decision makers.
Agreed-upon Procedures Engagement - Answers An attest engagement in which the CPAs agree to
perform procedures for a specified party and issue a report that is restricted to use by that party.
American Institute of Certified Public Accountants (AICPA) - Answers The national professional
organization of CPAs engaged in promoting high professional standards to ensure that CPAs serve the
public interest.
Applicable Financial Reporting Framework - Answers The financial reporting framework adopted by
management and, where appropriate, those charged with governance in the preparation of the financial
statements that is acceptable in view of the nature of the entity and the objective of the financial
statements, or that is required by law or regulation. The term "fair presentation framework" is used to
refer to a financial reporting framework that requires compliance with the requirements of the
framework and:
Assertion - Answers A representation or declaration made by the responsible party, typically
management of the entity.
Attest Engagement - Answers An engagement in which the CPAs 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)
Audit Committee - Answers A subcommittee of the board of directors that is responsible for overseeing
both the internal audit function and the annual financial statement audit by independent CPAs
Audit of Financial Statements - Answers An examination designed to provide an opinion, the CPAs
highest level of assurance that the financial statements follow GAAP or another acceptable basis of
accounting.
Compliance Audit - Answers An audit to measure the compliance of the organization with some
established criteria (e.g. laws and regulations, or internal control policies and procedures)
Dodd-Frank Act (the Wall Street Reform and Consumer Protection Act) - Answers A U.S. federal law that
increases federal government regulation of the financial industry. the legislation, enacted in July 2010,
aims to prevent a major financial crisis by creating new financial regulatory processes that are aimed at
enforcing transparency and accountability while implementing rules for consumer protection. the act
also expands the public company accounting oversight board's authority to oversee audits of brokers
and dealers
