A5&6

Question 1

Level of Assurance (Examination, Compilation, Review, Agreed upon procedures)

Answer 1

Examination: Positive
Compilation: None
Review: Limited
AUP: None

Question 2

Assurance given in report on compliance with contracts/regulations

Answer 2

Nonissuers:
Alongside F/S audit: Negative
Financial Presentation: Positive
Government: always positive

Question 3

Representation letter is required for which attestation engagements?

Answer 3

Examinations, Agreed upon procedures, Reviews

Question 4

SSARS applies to all preparations except:

Answer 4

1. solely for submission to tax authorities
2. for inclusion in written personal financial plans
3. in conjunction with litigation services for pending/potential proceedings
4. in conjunction with business valuation services

Question 5

2 items not required in a compilation engagement

Answer 5

1. verify the accuracy and completeness of mgmt’s assertions and info provided
2. assess fraud risk

Question 6

Non audit services in which independence is required

Answer 6

Reviews, Examinations, Agreed upon procedures. (Compilations must assess independence, but not required to be independent).

Question 7

Engagements in which an understanding of internal control is needed

Answer 7

Audits and Interim Reviews

Question 8

Restriction of report on internal controls

Answer 8

Alongside F/S audit: Restricted
IC Report only: not-restricted

Question 9

Extra reporting requirement under Govt. Auditing Standards

Answer 9

Must describe the scope of compliance with laws, internal control, and the results of tests of controls

Question 10

Standards that apply to Reviews

Answer 10

Interim: PCAOB (issuers)/SAS (nonissuers)
Other: SSARS

Question 11

Appropriate for general use (Forecast vs. Projection)

Answer 11

Forecast: Allowed
Projection: Restricted