Exam (elaborations)
Chapter 25 Other Assurance Services
- Institution
- Auditing And Assurance Services
Chapter 25 Other Assurance Services Auditing and Assurance Services 14th Edition Test Bank
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Auditing and Assurance Services, 14e (Arens)
Chapter 25 Other Assurance Services
Learning Objective 25-1
1)The standards which govern the CPA's association with unaudited financial
statements of private companies are the:
A) AICPA's Code of Professional Conduct.
B) Statements on Auditing Standards (SASs).
C) Statements of Standards on Attestation Engagements (SSAEs).
D) Statements on Standards for Accounting and Review
Services (SSARS). Answer: D
Terms: Standards; Unaudited financial statements; Private companies
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
2)The two types of services provided in connection with the Statements on Standards for
Accounting and Review Services are:
A) audit and examination
services. B) compilation and
review services. C) examination
and review services.
D) management advisory services and
compilations. Answer: B
Terms: Statements on Standards for Accounting and Review Services (SSARS)
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
3)Practitioners who perform reviews and compilations are referred to in the SSARS
standards as:
A) bookkeepers.
B)accountants.
C) auditors.
D) CPAs.
Answer:
B
Terms: Reviews and compilations; SSARS standards
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
1
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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4)Compilation reports may be of all but which of the
following types? A) compilation with limited independence
B) compilation with full disclosure
C) compilation without independence
D) compilation that omits substantially all
disclosures Answer: A
Terms: Compilation reports
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
5)A CPA firm can issue a compilation report:
A) only if the partners are independent.
B)only if all the partners and the staff in the office performing the engagement are
independent.
C) if the partners have no material or direct immaterial interest in client.
D) even if it is not independent.
Answer: D
Terms: Compilation report
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
6)Which of the following would not be included in a CPA's report based upon a review of
the financial statements of a nonpublic entity?
A) A statement that the review was in accordance with generally accepted
auditing standards. B) A statement that all information included in the financial
statements is the representation of management.
C) A statement describing the principal procedures performed.
D) A statement describing the auditor's conclusions based upon the results
of the review. Answer: A
Terms: CPA's report; Review of financial statements; Nonpublic entity
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
7)The statement that "Nothing came to our attention which would indicate that these
statements are not fairly presented" expresses which of the following?
A) disclaimer of an
opinion B) negative
assurance
C) negative
confirmation D)
shared opinion
Answer: B
Terms: Nothing came to our attention; statements are not fairly presented
Diff: Easy
Objective: LO 25-1
AACSB: Reflective thinking skills
2
Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
, To
To downloaddownload moremore ebooks,ebooks, slides,slides, SMSM andand TBTB visit:visit: http://testbanklancerhtp:/testbanklancer..blogspotblogspot..comcom
8)For compilations, an accountant does which of the
following? A)
Obtain an
understanding Perform tests of Perform tests of
of internal control. controls. transactions.
Yes Yes No
B)
Obtain an
understanding Perform tests of Perform tests of
of internal control. controls. transactions.
Yes No Yes
C)
Obtain an
understanding Perform tests of Perform tests of
of internal control. controls. transactions.
No Yes Yes
D)
Obtain an
understanding Perform tests of Perform tests of
of internal control. controls. transactions.
No No No
Answer: D
Terms: Compilation
Diff: Moderate
Objective: LO 25-1
AACSB: Reflective thinking
skills
9)The concept of limited assurance is provided for in which of the following
engagements? A) audit
B) review
C) compilation
D) agreed-upon
procedures Answer: B
Terms: Limited assurance; Engagements
Diff: Moderate
Objective: LO 25-1
AACSB: Reflective thinking skills
3
, Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall
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