AUD CPA Exam || 100% accurate answers.
Review Engagement correct answers Engagement in which the auditor does adequate work to
provide limited assurance that the statements are prepared in compliance with the company's
reporting framework.
SSARS should include: correct answers a title that includes the word independent to clearly
indicate that it is the report of an independent accountant for a review engagement.
an addressee, based on the circumstances of the engagement.
identification of criteria and the responsible party for the subject matter.
an introductory paragraph that identifies the entity whose financial statements have been
reviewed.
a second paragraph stating that a review is less substantial than an audit and provides only
limited assurance.
a third paragraph stating that the accountant must remain independent and meet relevant ethical
requirements of the AICPA Code of Conduct.
a concluding section that includes a statement about whether the accountant is aware (or not
aware) of any material modifications that should be made to the accompanying financial
statements for them to be in accordance with the applicable financial reporting framework.
the signature of the accountant's firm.
the city and state where the accountant practices.
the date of the review report.
, attribute correct answers any characteristic that is either present or absent. In tests of controls, the
presence or absence of evidence of the application of a specified control
Attribute is used in test of controls where: correct answers the auditor is looking for a specific
characteristic (or the absence of a specific characteristic, such as evidence of approval).
Attribute Sampling correct answers is used to estimate the rate (percentage) of occurrence of a
specific quality (attribute) in a population and is used primarily for tests of controls; it allows the
auditor to quantify the sampling risk.
Variable Sampling correct answers A sampling technique used to estimate the average or total
value of a population based on a sample; a statistical model used to project a quantitative
characteristic such as a monetary amount
compilation correct answers a service, the objective of which is to assist management in
presenting financial information in the form of financial statements without undertaking to obtain
or provide any assurance that there are no material modifications that should be made to the
financial statements in order for the statements to be in conformity with the applicable financial
reporting framework.
Compilation engagement is not an correct answers Assurance engagement
A going concern correct answers The accounting assumption that a business is expected to
operate indefinitely.
Analytical Procedures correct answers comparisons of recorded amounts, or ratios developed
from recorded amounts, to expectations developed by the auditor—where a relationship is
plausible and predictable (such as payroll expense divided by number of employees compared to
the prior period).
Review Engagement correct answers Engagement in which the auditor does adequate work to
provide limited assurance that the statements are prepared in compliance with the company's
reporting framework.
SSARS should include: correct answers a title that includes the word independent to clearly
indicate that it is the report of an independent accountant for a review engagement.
an addressee, based on the circumstances of the engagement.
identification of criteria and the responsible party for the subject matter.
an introductory paragraph that identifies the entity whose financial statements have been
reviewed.
a second paragraph stating that a review is less substantial than an audit and provides only
limited assurance.
a third paragraph stating that the accountant must remain independent and meet relevant ethical
requirements of the AICPA Code of Conduct.
a concluding section that includes a statement about whether the accountant is aware (or not
aware) of any material modifications that should be made to the accompanying financial
statements for them to be in accordance with the applicable financial reporting framework.
the signature of the accountant's firm.
the city and state where the accountant practices.
the date of the review report.
, attribute correct answers any characteristic that is either present or absent. In tests of controls, the
presence or absence of evidence of the application of a specified control
Attribute is used in test of controls where: correct answers the auditor is looking for a specific
characteristic (or the absence of a specific characteristic, such as evidence of approval).
Attribute Sampling correct answers is used to estimate the rate (percentage) of occurrence of a
specific quality (attribute) in a population and is used primarily for tests of controls; it allows the
auditor to quantify the sampling risk.
Variable Sampling correct answers A sampling technique used to estimate the average or total
value of a population based on a sample; a statistical model used to project a quantitative
characteristic such as a monetary amount
compilation correct answers a service, the objective of which is to assist management in
presenting financial information in the form of financial statements without undertaking to obtain
or provide any assurance that there are no material modifications that should be made to the
financial statements in order for the statements to be in conformity with the applicable financial
reporting framework.
Compilation engagement is not an correct answers Assurance engagement
A going concern correct answers The accounting assumption that a business is expected to
operate indefinitely.
Analytical Procedures correct answers comparisons of recorded amounts, or ratios developed
from recorded amounts, to expectations developed by the auditor—where a relationship is
plausible and predictable (such as payroll expense divided by number of employees compared to
the prior period).
