Final Exam AUD Burke

which of the following best describes what is meant by the term generally accepted auditing standards?

the professions ethical standards most likely would be considered to have been violated when a CPA represents that specific consulting services will be performed for a stated fee and it is apparent at the time of the representation that the

according to the ethical standards of the profession, which of the following axis generally prohibited?

May a CPA hirer for the CPAs public accounting firm a non-CPA systems analyst who specializes in developing computer systems?

Stephanie is a CPA who was working as a controller for Brentwood Corporation. She is not in public practice. Which statement is true

according to the standards of the profession, which of the following activities would most likely not impair a CPA's independence

which of the following reports may be issued only by an accountant who is independent of a client

according to the ethical standards of the profession, which of the following acts is generally prohibited?

to exercise due professional care and auditor should

Carl, CPA, is a staff auditor participating in the audit engagement of Fort Incorporated. Which of the following circumstances impairs Carl's independence

on June 1, 2008, ACPA obtained a $100,000 personal loan from a financial institution client from the CPA provided compilation services. The loan was fully secured in considered material to the CPA's net worth. The CPA paid the loan in full on December 31, 2009. On April 3, 2009, the client asked the CPA to audit the clients financial statements for the year ended December 31, 2009. Is the CPA considered independent with respect to the audit of the clients December 31, 2009 financial statements?

which of the following statements is correct regarding a CPA employee of a CPA firm taking copies of information contained in client files when the CPA leaves the firm

which of the following statements is correct regarding the and accountants working papers?

which of the following is an authoritative body designated to promulgate a test station standards?

what body establishes international auditing standards

which of the following is not true about international auditing standards

which of the following is not true about international auditing standards

independence standards of the GAO for audits in accordance with generally accepted government auditing standards described three types of impairments of independence. Which of the following is not one of these types of impairments?

in accordance with the independent standards of the GAO for performing audits in accordance with generally accepted government auditing standards, which of the following is not an example of an external impairment of independence?

under the independent standards of the GAO for performing audits in accordance with generally accepted government auditing standards, which of the following are overreaching principles for determining whether a non-audit service impairs independence?

when issuing an unqualified opinion, the auditor who evaluates the audit findings should be satisfied that the

the auditor with final responsibility on the engagement had a disagreement with one of the assistants in regards to an audit procedure.if the assistant believes is necessary to disassociate from the matters resolution. The CPA firms procedures should enable the assistant to

an examination of the financial forecast is a professional service that involves

the nature and extent of the CPA firms quality control relate to

a CPA firm can communicate its quality control to its personnel only through

which of the following is not an element of quality control

quality control of the CPA firm is referred to on the statements of quality control and quality control standards as

one other CPA firms goals is to provide professional services and conform to professional standards. reasonable assurance of providing the standard is done through

which is correct about thePCAOB guidance that uses the term should?

which of the following sets of standards is the PCAOB not have the authority to establish for audits of public companies

how large must the actual loss identified by the auditor be for control deficiency to possibly be considered a material weakness

for purposes of an audit of internal control performed under public company accounting oversight board requirements, and account is significant if there is more than a

a controlled efficiency that is more than a significant deficiency is more likely to result in what form of audit opinion relating to internal control

which of the following is most likely to be considered a
material weakness in internal control for purposes of an internal control audit of an issue or public company

inability to evaluate internal control due to the circumstance caused scope limitation relating to a significant account in a Sarbanes-Oxley 404 internal audit control is most likely to result in a

which of the following is most likely to indicate a significant deficiency relating to a clients antifraud programs

and auditor identified a material weakness in December. The client was informed and corrected it shortly after the as of date December 31, the auditor agrees that the correction aluminous the material weakness as of January 31. The appropriate report under a PCAOB standard five audit of internal control is

in an integrated audit, which of the following leads to an adverse opinion on internal control

in an integrated audit what must the auditor communicate to the audit committee

in which manner are significant deficiencies communicated by the auditors to the audit committee under public company accounting oversight board standard five

which is correct concerning the external auditors use of work of others an audit of internal control perform for public company

in an integrated audit which must the auditor communicate in writing to management

which of the following is correct when applying a top-down approach to identify controls to test an integrated audit

which of the following is not included in the standard unqualified opinion on internal control over financial reporting performed under public company accounting oversight board requirements

walk-throughs ordinarily provide evidence it helps the auditor to

which of the following controls most likely would reduce the risk of diversion of customer receipts by and entities employees

and auditor suspects the client cashier is misappropriating cash receipts for personal use by lapping customer checks received in the mail. In attempting to uncover this embezzlement scheme the auditor most likely would compare the

upon receipt of customers checks in the mail room, responsible employee should prepare a remittance listing that is forwarded to the cashier. A copy of the listing should be sent to the

in testing controls over cash disbursements, and auditor most likely would determine that the person who signs checks also

which of the following is not an accurate statement about communication of internal control related matters to management on a nonissue or company

which of the following matters would in auditor most likely considered to be a material weakness to be communicated to those charged with governance of an audit client

which of the following statements is correct concerning significant deficiencies in an odd

and auditors letter issued of significant deficiencies relating to an entities internal control observe doing a financial statement audit should

which of the following statements is correct concerning and auditors required communication of significant deficiencies

which of the following statements is correct concerning significant deficiencies noted in an audit

which of the following representation should not be included in a report on internal control related matters noted in an audit

which of the following statements concerning material weaknesses and significant deficiencies is correct

during the audit the independent auditor identified the existence of a weakness in the clients internal control in communicated this finding in writing to the client senior management and those charged with governance. The auditor should

in identifying matters communication with those charged with governance of an audit client, and auditor most likely would ask management whether

which of the following statements is correct concerning and auditors required communication with those charged with governance of an audit client?

a auditor would least likely initiate a discussion with those charged with governance of an audit client concerning

which of the following statements is correct about an auditors required communication with those charged with governance of an audit client

which of the following matters is in auditor required to communicate to an entities audit committee

should and auditor communicate the following matters to those charged with governance of an audit client

in reporting on and entities internal control over financial reporting a practitioner should include a paragraph that describes the

which of the following best describes a CPAs engagement to report on and entities internal control over financial reporting

an engagement to examine internal control will generally

how do the scope, procedures, and purpose of an examination of internal control compared to those for obtaining an understanding of internal control and assessing control risk is part of an audit?

when an examination has been performed on the effectiveness of entities internal control over financial reporting and a material weakness has been noted, the practitioners report should express an opinion on

in assessing the competence of an internal auditor, an independent CPA most likely would obtain information about the

for which of the following judgments may an independent auditor share responsibility with an entities internal auditor who is assessed to be both competent and objective

the work of internal auditors may affect the independent auditor's

an internal auditors work would most likely affect the nature, timing, and extent of an independent CPAs auditing procedures when the internal auditors work relates to assertions about the

during an audit and internals auditor may provide direct assistance to an independent CPA in

when assessing the internal auditors competence the independent CPA should obtain permission about the

in assessing the current competence and objectivity of an entities internal auditor, an independent auditor would least likely consider information obtained from

if the independent auditor's decide that the work performed by the internal auditor may have a bearing on their own procedures, they should consider the internal auditors

in assessing the objectivity of internal auditors, an independent auditor should determine

Which of the following would not be considered an analytical procedure?

What type of analytical procedure would an auditor most likely use in developing relationships amoung balance sheet accounts when reviewing the financial statements of a non public entity?

An auditor may achieve audit objectives related to particular assertions by

in entities income statements were misstated due to the recording of journal entries that involve debits and credits to an unusual combination of expense and revenue accounts. The auditor most likely could have detected this fraudulent financial reporting by

auditors try to identify predictable relationships when using analytical procedures. Relationships involving transactions from which of the following accounts most likely would yield the highest level of evidence

analytical procedures used in the overall review stage of an audit generally include

which of the following tends to be most predictable for purposes of analytical procedures applied as substantial tests

a basic premise underlying the application of analytical procedures is that

for all audits of financial statements made in accordance with generally accepted auditing standards, they use of analytical procedures is required to some extent

and auditors analytical procedures most likely would be facilitated if the entity

analytical procedures performed in the overall review stage of an audit suggests that several accounts have unexpected relationships. The results of these procedures most likely would indicate that

which of the following comparisons would in auditor most likely make evaluating entities costs and expenses

to be effective, analytical procedures in the overall review stage of an audit engagement should be performed by

which of the following sets of information doesn't auditor usually confirm on one form

the usefulness of the standard Bank confirmation request may be limited because the bank employee who completes the form may

an auditor most likely would limit substandard audit tests of sales transactions when control risk is assessed as low the occurrence assertion concerning sales transactions and the auditor has already gathered evidence supporting

in auditor should trace bank transfers the last part of the audit. In first part of the subsequent. To detect whether

to gather evidence regarding the balance per bank in a bank reconciliation, and auditor would examine all of the following except

a cash shortage may be concealed by transporting funds from one location to another or by converting the negotiable assets to cash.because of this, which of the following is vital

the primary purpose of sending a standard confirmation request of financial institutions with which the client has done business during the year is to

In auditor observes the mailing of monthly statements to clients customers reviews evidence of follow-up on errors reported by the customers. This test of controls most likely is performed to support managements financial statement assertions

for which of the following matters should in auditor obtains written management representations

to which of the following matters would materiality limits not apply in obtaining written management representations

the date of the management representation letter should coincide with the date of the

which of the following matters would in auditor most likely increase in the management representation letter

the current chief executive and financial officers have only been employed by company X the past five months of the year two. X company is presenting comparative financial statements on years one and two, both of which were audited by Williams Jones, CPA. For which year should Jones obtain written representations from these two individuals?

which of the following statements ordinarily is included among the written client representations obtained by the auditor

when considering the use of management's written representations is audit evidence about the completeness assertion, and auditor should understand that such representations

a written representation from a clients management which among other magic knowledge is responsibility for the fair representation of financial statements, should normally be signed by the

a limitation on the scope of the auditors examination sufficient to preclude an unqualified opinion would always result when management

a purpose of a management representation letter is to reduce

a lawyers response to an auditors inquiry concerning litigation, claims, and assessments may be limited to matters that are considered individually or collectively material to the clients financial statements. Which party should reach an understanding on the limits of materiality for this purpose?

the refusal of the clients attorneys to provide information requested an inquiry letter generally is considered

which of the following is an audit procedure that and auditor most likely would perform concerning litigation, claims, and assessments?

the primary reason and auditor request letters of inquiry be sent to clients attorneys is to provide the auditor with

which of the following is not an audit procedure that the independent auditor would perform concerning litigation, claims, and assessments?

the scope of an audit is not restricted when in attorneys response to an auditor is result of the clients letter of audit inquiry limits the response to

a CPA as received in attorneys letter in which no significant disagreements with the client assessments of contingent liabilities were noted. The resignation of the clients lawyer shortly after receipt of the letter should alert the auditor that

which of the following statements extracted from a clients lawyer's letter concerning litigation, claims, and assessments most likely would cause the auditor to request clarification?

the objective of an accountant's compilation of the financial statements of a nonissue or, nonpublic company is to provide what type of assurance?

the existence of audit risk is recognized by the statement in the auditor standard report that the auditor

When and accountant performs more than one level of service for example a compilation and a review, or a compilation and an audit, concerning the financial statements of a nonissue or entity, the accountant generally should issued the report that is appropriate for

which of the following is least likely to be restricted use report?

which of the following statements is correct concerning and auditors responsibility for controlling the distribution by the client of a restricted use report?

which of the following statements is a basic element of the auditors standard report

in May 2009, and auditor reissues the auditor's report on the 2007 financial statements and a continuing clients request. The 2007 financial statements are not restated in the auditor does not revise the wording of the report. The auditor should

which paragraph 7 auditor standard report on financial statements should refer to generally accepted auditing standards in generally accepted accounting principles

auditor expressed a qualified opinion on the prior years financial statements because of lack of adequate disclosure. These financial statements are properly restated in the current year and presented in comparative form with the current years financial statements. The auditors updated report on the prior years financial statement should

and auditors responsibility to express an opinion on the financial statements is

which of the following phrases should be included in the opinion paragraph when in auditor expresses a qualified opinion

how does an auditor make the following representations when issuing the standard auditors report on comparative financial statements

the fourth standard of reporting requires the auditor's report to contain either an expression of opinion regarding the financial statements taken as a whole or assertion to the effect that an opinion cannot be expressed. The objective of the fourth standard is to prevent

which of the following best describes the reference to the expression taken as a whole in the fourth generally accepted auditing standard of reporting

Wilson CPA completed the fieldwork of the audit of ABC December 31, 2009 financial statements on March 6, 2010. A subsequent event requiring adjustment to the 2009 financial statements occurred on April 10, 2010 in came to Wilson's attention on April 24, 2010. If the adjustment is made without disclosure of the event, Wilson's report ordinarily should be dated

in auditor issued an audit report that was dual dated for a subsequent event occurring after the completion of fieldwork but before issuance of the auditors report. The auditors responsibility for events occurring subsequent to the completion of fieldwork was

if financial statement audit report issued for the audit of an issue or public company concludes that the financial statements follow

which of the following is not correct concerning information included in an audit report of financial statements issued under the requirements of the public company accounting oversight board

a principal auditor decides not to refer to the audit of another CP a who audited a subsidiary of the principle auditors client. After making inquiries about the other CPAs professional reputation and independence, the principal auditor most likely would

the introductory paragraph of an auditors report contains a following sentences

we did not audit the financial statements of ABC Inc. a wholly-owned subsidiary which statements reflect total assets and revenues constituting 27% and 29% respectively, of the related consolidated totals. Though statements audited by other auditors Street whose report has been furnished to us in our opinion in so far as it relates to the amounts included for ABC Incorporated is based solely on the report of other auditors

in which of the following situations would and auditor ordinarily issuing unqualified audit opinion without an explainatory paragraph

in auditor may issue the standard audit report when the

in the auditor's report the principle auditor decides not to make reference to another CPA who audited a client subsidiary. The principle auditor could justify this decision if, among other requirements, the principle auditor

when financial statements of a company that follows G a S b standards would be misleading due to unusual circumstances departure no standards, the auditor should explain the unusual circumstances a separate paragraph and express an opinion that is

in auditor concludes that there is substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. If the entities financial statements adequately disclose its financial difficulties, the auditor's report is required to include an explanatory paragraph the specifically uses the phrases

Wilson CPA has substantial doubt about ABC company's ability to continue as a going concern when reporting on ABC's audited financial statements for the year ended June 30, 2009. That doubt has been removed in 2010. What is Wilson's reporting responsibility if ABC is presenting its financial statements for the year ended June 30, 2010, on a comparative basis with those of 2010?

when in auditor concludes there is substantial doubt about a continuing audit client's ability to continue as a going concern for a reasonable period of time, the auditors responsibility is to

Green CPA concludes that there is substantial doubt about ABC company's ability to continue as a going concern if ABC's financial statements adequately disclose its financial difficulties, greens auditor's report should

in which of the following circumstances would in
auditor most likely add an explanatory paragraph to the standard report
on not affecting the auditors unqualified opinion?

after considering and entities negative trends and financial difficulties, and auditor has substantial doubt about the entity's ability to continue as a going concern. The auditors considerations relating to management's plans for dealing with the adverse effects of these conditions most likely would include managements plans to

which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern

Wilson CPA believes there is substantial doubt about the ability of ABC Corporation to continue as a going concern for a reasonable period of time. In evaluating ABC's plans for dealing with the adverse effects of future conditions and events, Wilson most likely would consider as a mitigating factor ABC's plans to

which of the following conditions or events most likely would cause an auditor to have substantial doubt about an entity's ability to continue as a going concern

which of the following auditing procedures most likely would assist in auditor and identifying conditions and events that may indicate substantial doubt about an entity's ability to continue as a going concern?

which of the following audit procedures would most likely assist in auditor and identifying conditions and events that may indicate there could be substantial doubt about an entity's ability to continue as a going concern

Wilson CPA believes there is substantial doubt about the ability of ABC company to continue as a going concern for a reasonable period of time. In evaluating ABC's plans for dealing with the adverse effects of future conditions and events Wilson most likely would consider, as a mitigating factor, ABC's plans to

the adverse effects of events causing auditor to believe there is substantial doubt about an entity's ability to continue as a going concern would most likely be mitigated by evidence relating to the

which of the following events within auditor issue a report that omits any reference to consistency

and auditor would express and unqualified opinion with an explanatory paragraph added to the auditor's report for

under which of the following circumstances would a disclaimer of opinion not be appropriate

ABC company uses the FIFO method of costing for international subsidiaries inventory and LIFO for its domestic inventory. Under these circumstances, the auditor's report on ABC's financial statements should express and

in the first audit of a new client, and auditor was able to extend auditing procedures to gather sufficient evidence about consistency. Under these circumstances, the auditor should

when management does not provide reasonable justification that a change in accounting principle is preferable and it represents comparative financial statements, the auditor should express a qualified opinion

when an entity changes his method of accounting for income taxes, which has a material effect on comparability, the auditor should refer to the change in an explanatory paragraph added to the auditor's report. This paragraph should identify the nature of the change and

an entity change from the straight line method to the declining balance method of depreciation for all newly acquired assets. This changes no material effect on the current years financial statements, but is reasonably certain to have a substantial effect in later years. If the change is disclosed in the notes to the financial statements, the auditor should issue a report with a

when reporting on comparative financial statements, and auditor ordinarily should change the previously issued opinion on the prior years financial statements if the

Wilson CPA audited ABC companies prior-year financial statements. These statements are presented with those of the current year for comparative purposes without Wilson's auditor's report, expressed a qualified opinion. In drafting the current years auditors report, Johnson CPA the successor auditor, should

before reissuing the prior years audit auditor's report on the financial statements of a former client, the predecessor auditor should obtain a letter a representations from the

when single year financial statements are presented, and auditor you ordinarily would express and unqualified opinion in an unmodified report if the

a client is presenting comparative two-year financial statements. Which of the following is correct concerning reporting responsibilities of a continuing auditor?

the predecessor auditor, who was satisfied after properly communicating with the successor auditor, has reissued a report because the audit client desires comparative financial statements. The predecessor auditor's report should make

on audited financial statements for the prior year presented in comparative form with audited financial statements for the current year should be clearly marked to indicate their status and

in an audit of a nonissue or company, which statement is correct concerning requirements supplementary information by a designated accounting standard setter?

in auditor concludes that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision, but the client refuses to revise or eliminate the material inconsistency, the auditor may

when audited financial statements are presented in a clients document containing other information, the auditor should

In auditor includes a separate paragraph in an otherwise unmodified report to emphasize that the entity being reported all on had significant transactions with related parties. The inclusion of the separate paragraph

and auditor concludes of the clients illegal act, which is a material effect on the financial statements, has not been properly accounted for or disclosed. Depending on the materiality of the effect on the financial statements, the auditor should express either a

which of the following phrases would in auditor most likely including the auditor's report when expressing a qualified opinion because of inadequate disclosure?

in which of the following circumstances would in auditor be most likely to express an adverse opinion?

when in auditor qualifies an opinion because of inadequate disclosure, the auditor should describe the nature of the omission in a separate explanatory paragraph and modify the

if a publicly held company issues financial
statements that purport to present its financial position and results of
operations but omits the statement of cash flows, the auditor
ordinarily would express a

in which of the following situations would in auditor ordinarily choose between expressing an except for qualified opinion or an adverse opinion

in which of the following situations would in auditor ordinarily choose between expressing a qualified opinion or an adverse opinion

in the first audit of a client and auditor was not able to gather sufficient evidence about the consistent application of accounting principles between the current in the prior year as well as the amounts of assets or liabilities at the beginning of the current year. His was due to the clients record retention policies. If the amounts in question could materially affect current operating results, the auditor would

in which of the following circumstances would in auditor not express an unqualified opinion?

due to a scope limitation, and auditor disclaimed an opinion on the financial statements taken as a whole, but the auditor's report included a statement that the current asset portion of the entity's balance sheet was fairly stated. The inclusion of the statement is

Wilson CPA, was engaged to audit the financial statements of ABC company, a new client, the year ended December 31, 2009. Wilson obtain sufficient audit evidence for all of ABC's financial statement items except ABC's opening inventory. Due to inadequate financial records, Wilson could not verify ABC's January 1, 2009 inventory balances. Wilson's opinion on ABC's 2009 financial statements most likely will be

in auditor who qualifies an opinion because of an insufficiency of evidence show matter should describe the limitations in an explanatory paragraph. The auditor should also referred to the limitation in the

Wilson CPA, has been asked to audit and report on the balance sheet of ABC company but not on the statements of income, retained earnings, or cash flows. Wilson will have access to all information underlying the basic financial statements. Under these circumstances, Wilson may

When disclaiming opinion due to a client imposed scope limitation, and auditor should indicate in a separate paragraph why the audit did not comply with generally accepted auditing standards. The auditor should also omit the

in auditor decides to issue a qualified opinion on and entities financial statements because a major inadequacy in its computerized accounting records prevents the auditor from applying necessary procedures. The opinion paragraph of the auditors report should state that the qualification prep pertains to

a scope limitation sufficient to preclude an unqualified opinion always will result when management

in auditor may not issue a qualified opinion when

in auditor may express an opinion on and entities Accounts Receivable balanceeven if the auditor has disclaimed in opinion on the financial statements taken as a whole provided the

Wilson CPA is engaged by ABC Corp. the client to audit the financial statements of XYZ Corp. a company that is not Wilson's client. ABC expects to present XYZ's audited financial statements with Wilson's auditors report to First Federal Bank to obtain financing in ABC's attempt to purchase XYZ

when in auditor expresses an adverse opinion, the opinion paragraph should include

and auditor should disclose as substantive reasons for expressing an adverse opinion in an explanatory paragraph

whenever independent CPA assistant preparing the financial statements of a publicly held entity, but has not audited or reviewed them, the CPA should issue a disclaimer of opinion. In such situations, the CPA has no responsibility to apply any procedures beyond

when an independent CPA is associated with the financial statements of a publicly held entity but has not audited or reviewed such statements, the appropriate form of report to be issued must must include a

Wilson CPA is aware that Wilson's name is to be included in the interim report of national company a publicly held entity nationals quarterly financial statements are contained in the interim report. Wilson has not audited or reviewed these interim financial statements. Wilson should request that

the objective of a review of interim financial information of a public entityissuer is to provide an accountant with the basis for reporting whether

an independent accountants report is based on a review of interim financial information. If this report is presented in a registration statement, a prospect this should include a statement clarifying that the

modification of the CPAs report on a review of the interim financial statements of a publicly held company would be necessitated by which of the following?

which of the following procedures ordinarily should be applied when an independent accountant conducts a review of interim financial information of publicly held entity?

which of the following is least likely to be a procedure included in an accountants review of interim financial information of a public entity?

and accountants review report on interim financial information of the public entity is most likely to include a

and auditor may report on condensed financial statements that are derived from complete financial statements if the

and auditor is engaged report on selected financial data that are included in a client prepared document containing audited financial statements. Under these circumstances, the report on the selected data should

before reporting on the financial statements of the US entity that have been prepared in conformity with another countries accounting principles, and auditor practicing in the US should

which of the following is least likely to be included in an agreed-upon procedures atesttation engagement report?

a summary of findings rather than assurance is most likely to be included in

which of the following is not correct concerning us pacified parties of an agreed-upon procedures report under either the auditing or attestation standards

when and accountant examines projected financial statements, the accountant's report should include a separate paragraph that

and accountant may accept an engagement to apply agreed-upon procedures to perspective financial statements provided that

and accountants compilation report on a financial forecast should include a statement that

accepting an engagement to examine in entities financial projection most likely would be appropriate if the projection were to be distributed to

A CPA in public practice is required to comply with the provisions of the statements on standards for atesttation engagements, SSAE when

and accountants compilation report of the financial forecast should include a statement that the

which of the following is a perspective financial statement for general use upon which an accountant may appropriately report

given one or more hypothetical assumptions, a responsible party may prepare, to the best of its knowledge and belief, and entities expected financial position, results of operations, and changes in financial position. Such perspective financial statements are known as

and accountant may except the engagement to apply agreed-upon procedures to perspective financial statements provided that

when accounting examines a financial forecast the fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions and the accountants report an issue a

an account is report of the review of pro forma financial information should include a

which of the following is not an objective of a CPAs examination of the clients management discussion and analysis prepared pursuant to securities and exchange commission rules and regulations?

which of the following is an assertion embodied in management's discussion and analysis?

which of the following statements is correct relating to an auditors review engagements on and entities management discussion and analysis?

statements on standards for accounting and review services establish standards and procedures for which of the following engagements?

the authoritative body designated to promulgate standards concerning accountants Association with on audited financial statements of an entity that is not required to file financial statements within agency regulating the issuance of the entity securities is the

which of the following accounting services main
accountant perform without being required to issue a compilation or review report under the statements on standards for accounting and
review services?

Main accounting except the engagement to compile or review the financial statements of a not-for-profit entity if the accountant is unfamiliar with the specialized industry accounting principles, or plans to obtain the required level of knowledge before compiling or reviewing the financial statements?

which of the following statements is correct concerning both an engagement to compile and engagement to review a nonissue or financial statements?

in accounting is required to comply with the provisions of statements on standards for accounting and review services when

ABC company engaged Wilson CPA to submit to ABC a written personal financial plan containing on audited personal financial statements. Wilson anticipates omitting certain disclosures required by Because the engagement sole purpose is to assist ABC in developing a personal financial plan. For Wilson to be exempt from comp line with the requirements of statements on standards for accounting and review services. ABC is required to agree that the

statements on standards for accounting and review services apply when accountant has

Wilson CPA accepted engagement to audit the financial statements of ABC resources, a nonissue or. Before the completion of the audit, ABC requested Wilson to change the engagement to a compilation of financial statements. Before Wilson agrees to change the engagement, Wilson is required to consider the

and accountant may compile a nonissue is financial statements that omits all of the disclosures required by gap only of the omission is

while performing a compilation of financial statements, information indicating that the entity use information is being compiled may lack the ability to continue as a going concern has come to the accountants attention. The client agrees that such a situation does exist, a refuses to add disclosures relating to it. What effect is this most likely to have on the account is review report?

when the content is engaged to compile a nonissue or's financial statements that omit substantially all disclosures required by, the accountant should indicate in the compilation report that the financial statements are

when on audited financial statements of a nonissue or are presented in comparative form with audited financial statements in the subsequent year, the on audited financial statement should be clearly marked to indicate their status and

Wilson CPA compiled improperly reported on the financial statements of ABC company a nonissue or, for the year ended March 31, 2008. These financial statements omitted substantially all disclosures required by generally accepted accounting principles. ABC company asked Wilson to compile the statements for the year ended March 31, 2009 and to include all Disclosures for the 2009 statements only, but otherwise present both years financial statements in comparative form. What is Wilson's responsibility concerning the proposed engagement

which of the following statements should not be included in an accountant standard report a stone the compilation of an entities financial statements?

if requested to perform review engagement for a nonissue or in which an accountant has an immaterial direct financial interest, the accountant is

Wilson CPA has been asked to issue a review report on the balance sheet of ABC company a nonissue or. Wilson will not be reporting on ABC company statements of income, retained earnings, and cash flows. Wilson may issue the review report provided the

Wilson CPA was engaged review the financial statements of ABC company a nonissue or. During the engagement Wilson uncovered a complex scheme involving client illegal acts that materially affect ABC's financial statements. If Wilson believes a modification of the standard review report is not adequate to indicate the deficiencies in the financial statements will show Wilson should

which of the following is not generally considered a procedure followed by an accountant in obtaining a reasonable basis for the expression of limited assurance for review of financial statements?

which of the following procedures would and accountant least likely perform during an engagement to review the financial statements of a nonissue or Russian Mark

which of the following procedures should and accountant performs during an engagement to review the financial statements of a nonissue or?

and accountant should perform analytical procedures during an engagement to

which of the following inquiry or analytical procedures ordinarily is performed in an engagement to review a nonissue or is financial statements?

which of the following procedures would most likely be included in the review engagement of a nonissue or

and accountant has been engaged to review a nonissue is financial statements that contained several departures from gap. If the financial statements are not revised and modification of the standard review report is not adequate to indicate the deficiencies, the accountant should

each page of a nonissue is financial statements reviewed by an accountant should include the following reference:

financial statements of a nonissue or that have been reviewed by and accountant should be accompanied by a report stating that a review

and accountant who it begun an audit of the financial statements of a nonissue or was asked to change the engagement to review because of a restriction on the scope of the audit. If there is reasonable justification for the change, the accountant review report should include reference to the

Wilson CPA is engaged to review the 2008 financial statements of ABC company a nonissue or. Previously Wilson audited ABC's 2007 financial statements and expressed in unqualified opinion. Wilson decides to include a separate paragraph 2008 review report because ABC plans to present comparative financial statements for 2008 and 2007. This separate paragraph should indicate that

in accountant standard report and review of the financial statements of a nonissue or should state that the accountant

advantage of using statistical over nonstatistical sampling sampling methods and test of controls is of the statistical methods

an advantage of statistical sampling over nonstatistical sampling is that statistical sampling helps in auditor to

the likelihood of assessing control risk to high is the risk that the sample selected to test controls

the risk of incorrect acceptance and the likelihood of assessing control risk to low relate to the

which of the following best illustrates the concept of sampling risk

in assessing sampling risk, the risk of incorrect rejection and the risk of assessing control risk to high relate to the

which of the following sampling methods would be used to estimate a numerical measurement of the population, such as a dollar value?

for which of the following audit tests would in auditor most likely use attribute sampling?

in underlying feature of random-based selection of items is that each

which of the following statistical selection techniques is least desirable for use by an auditor

what is the primary objective of using stratification as a sampling method in auditing

as a result of test of controls, and auditor assessed control risk to low and decreased substantive testing. This assessment occurred because the true deviation rate in the population was

which of the following factors are considered in determining the sample size for a test of controls?

which of the following statements is correct concerning statistical sampling and test of controls?

in determining the sample size for test of controls, and auditor should consider the likely rate of deviations, the allowable risk of assessing control risk to low, and the

which of the following combinations results in the decrease in sample size and the sample for attributes?

in auditor is testing internal control procedures that are evidenced on and entities vouchers by matching random numbers with Bulger's numbers. If a random number matches the number of avoided voucher, the vulture ordinarily should be replaced by another voucher in the random sample if the voucher

in auditor plans to examine a sample of 20 purchase orders for proper approvals as prescribed by the clients control procedures. one of the purchase orders and the chosen sample of 20 cannot be found, and the auditor is unable to use alternative procedures to test whether the purchase order was properly approved. The auditor should

which of the following statements is correct concerning probability proportional to size sampling, also known as dollar unit sampling?

which of the following statements is correct concerning the auditors use of statistical sampling?

which of the following most likely would be in advantage in using classical variables sampling rather than probability proportional to size sampling?