Audit Acctg 431 Ch. 25

Which of the following types of engagement reports would provide positive assurance? A) an examination B) a review C) an agreed-upon procedures engagement D) a compilation

A) an examination Terms: Engagement reports; Positive assurance Diff: Moderate Objective: LO 25-3

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

A) compilation with limited independence Terms: Compilation reports Diff: Easy Objective: LO 25-1

1) Which of the following services is performed under the attestation standards? A) WebTrust | SysTrust Yes | Yes B) WebTrust | SysTrust No | No C) WebTrust | SysTrust Yes | No D) WebTrust | SysTrust No | Yes

A) WebTrust | SysTrust Yes | Yes Terms: Services performed under attestation standards Diff: Moderate Objective: LO 25-4

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.

A) A statement that the review was in accordance with generally accepted auditing standards. Terms: CPA's report; Review of financial statements; Nonpublic entity Diff: Easy Objective: LO 25-1

Which of the following statements regarding prospective financial statements is most correct? A) CPA's are not attesting to the accuracy of the prospective financial statements. B) CPA's are attesting to the accuracy of the prospective financial statements. C) CPA's are performing a review on the company's assumptions and hypothetical's that underlie the prospective financial statements. D) CPA's are performing a review on the achievability of the prospective financial statements.

A) CPA's are not attesting to the accuracy of the prospective financial statements. Terms: Examination of prospective financial statements Diff: Challenging Objective: LO 25-6

The engagement and report on debt compliance letters should be limited to compliance matters that the auditor is qualified to evaluate. Which of the following engagements would be inappropriate for the CPA to attempt to evaluate? A) Determining whether the client has properly restricted its business activities to the requirements of an agreement. B) Determining whether principal and interest payments were made when due. C) Determining whether the proper limitations were maintained on dividends, working capital, and debt ratios. D) Determining whether the accounting records were adequate for conducting an ordinary audit.

A) Determining whether the client has properly restricted its business activities to the requirements of an agreement. Terms: Engagement and report on debt compliance letters Diff: Challenging Objective: LO 25-8

Evidence for a review engagement consists primarily of: A) Inquiries B) Analytical procedures C) Tests of details D) All of the above E) None of the above

A) Inquiries B) Analytical procedures Terms: Evidence for review engagement Diff: Moderate Objective: LO 25-1

An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements provided that: A) distribution of the report is to be restricted to the specified users involved. B) the prospective financial statements are also examined. C) responsibility for the adequacy of the procedures performed is taken by the accountant. D) negative assurance is expressed on the prospective financial statements taken as a whole.

A) distribution of the report is to be restricted to the specified users involved. Terms: Agreed-upon procedures to prospective financial statements Diff: Moderate Objective: LO 25-7

The distribution of which of the following types of reports is unrestricted? A) examinations and reviews B) reviews and agreed-upon procedures C) examinations and agreed-upon procedures D) examinations, reviews, and agreed-upon procedures

A) examinations and reviews Terms: Restricted distribution of reports Diff: Easy Objective: LO 25-3

As a CPA, you have been engaged to perform an attestation engagement. You would typically: A) express a conclusion about an assertion. B) provide management consulting services. C) prepare financial forecasts to secure in preparation for receiving debt funding. D) compile financial statements for the client.

A) express a conclusion about an assertion. Terms: CPA; Attestation engagement Diff: Easy Objective: LO 25-3

Auditors frequently audit statements that were prepared on a comprehensive basis of accounting other than GAAP. When this occurs: A) generally accepted auditing standards apply to these engagements and the reporting requirements differ. B) generally accepted auditing standards apply to these engagements and the reporting requirements are the same as well. C) generally accepted auditing standards do not apply to these examinations and the reporting requirements differ also. D) generally accepted auditing standards do not apply to this engagement and the reporting requirements remain the same for the CPA.

A) generally accepted auditing standards apply to these engagements and the reporting requirements differ. Terms: Audit statements; Comprehensive basis of accounting Diff: Moderate Objective: LO 25-1

An auditor has been asked to report on the balance sheet of Kane Company but not on the other basic financial statements. The auditor will have access to all information underlying the basic financial statements. Under these circumstances, the auditor: A) may accept the engagement because such engagements merely involve limited reporting objectives. B) may accept the engagement but should disclaim an opinion because of an inability to apply the procedures considered necessary. C) should refuse the engagement because there is a client-imposed scope limitation. D) should refuse the engagement because of a departure from generally accepted auditing standards.

A) may accept the engagement because such engagements merely involve limited reporting objectives. Terms: Report on balance sheet but not on the other basic financial statements Diff: Moderate Objective: LO 25-8

A CPA who has been engaged to audit financial statements that were prepared on a cash basis: A) must ascertain that there is proper disclosure of the fact that the cash basis has been used, the general nature of material items omitted, and the net effect of such omissions. B) may not be associated with such statements which are not in accordance with generally accepted accounting principles. C) must render a qualified report explaining the departure from generally accepted accounting principles in the opinion paragraph. D) must restate the financial statements on an accrual basis and then render the standard (short-form) report.

A) must ascertain that there is proper disclosure of the fact that the cash basis has been used, the general nature of material items omitted, and the net effect of such omissions. Terms: Engaged to audit financial statements prepared on a cash basis Diff: Moderate Objective: LO 25-8

In a review service where the client has failed to follow GAAP, the accountant is: A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report. B) required to determine the effect of a departure if management has not done so, and that fact must be disclosed in the report. C) not required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report. D) required to determine the effect of a departure if management has not done so, and that fact need not be disclosed in the report.

A) not required to determine the effect of a departure if management has not done so, but that fact must be disclosed in the report. Terms: Review service where client failed to follow GAAP Diff: Challenging Objective: LO 25-1

You are preparing to issue a report on the compilation of financial statements for a non-public company. Prior to issuing the report you should: A) read the financial statements to determine if they are free from obvious material errors. B) perform analytical procedures to determine if they are free from material misstatements. C) perform tests of balances on selected accounts to determine if they are free from material misstatements. D) perform limited control tests to determine if there are any material misstatements.

A) read the financial statements to determine if they are free from obvious material errors. Terms: Report on the compilation of financial statements for non-public company Diff: Moderate Objective: LO 25-1

Which of the following forms of review are permissible under SSARS? A) review without positive assurance B) review on financial statements that omit substantially all disclosures C) reviews without CPA independence D) review without limited procedures

A) review without positive assurance Terms: Form of review permissible under SSARS Diff: Moderate Objective: LO 25-2

Reports on agreed-upon procedures are intended to be distributed: A) to only the involved parties, who would have the requisite knowledge about those procedures and the level of assurance resulting from them. B) to only the involved parties, who would have the requisite knowledge about those procedures but not the level of assurance resulting from them. C) to any party to whom the client wishes. D) only to the stockholders of the client.

A) to only the involved parties, who would have the requisite knowledge about those procedures and the level of assurance resulting from them. Terms: Reports on agreed-upon procedures Diff: Moderate Objective: LO 25-3

The Securities and Exchange Commission requires quarterly financial information as a part of the: A) 10-K report. B) 10-Q report. C) 8-K report. D) auditor's report.

B) 10-Q report. Terms: Securities and Exchange Commission; Quarterly financial information Diff: Moderate Objective: LO 25-2

5) Professional standards prohibit which one of the following types of engagements for prospective financial statements from being undertaken? A) a compilation B) a review C) an examination D) an agreed-upon procedures engagement

B) a review Terms: Professional standards prohibit engagement for prospective financial statements Diff: Moderate Objective: LO 25-6

Practitioners who perform reviews and compilations are referred to in the SSARS standards as: A) bookkeepers. B) accountants. C) auditors. D) CPAs.

B) accountants. Terms: Reviews and compilations; SSARS standards Diff: Easy Objective: LO 25-1

General use statements are prepared for use by ________. A) known contractual parties B) any third party C) regulators D) internal auditor

B) any third party Terms: General use statements Diff: Moderate Objective: LO 25-6

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.

B) compilation and review services. Terms: Statements on Standards for Accounting and Review Services (SSARS) Diff: Easy Objective: LO 25-1

Which of the following is not one of the types of engagements and related forms of conclusions that are defined by the attestation standards? A) reviews B) compilations C) examinations D) agreed-upon procedures

B) compilations Terms: Attestations; Conclusions; Attestation standards Diff: Moderate Objective: LO 25-3

Your accounting firm has accepted a compilation engagement from a client in which your firm is not independent. In that case you: A) may not accept the engagement. B) may accept the engagement and disclose the lack of independence. C) may accept the engagement and not disclose the lack of independence. D) may accept the engagement and disclose the lack of independence and the reason for the lack of independence.

B) may accept the engagement and disclose the lack of independence. Terms: Compilation engagement; Firm not independent Diff: Challenging Objective: LO 25-1

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

B) negative assurance Terms: Nothing came to our attention; statements are not fairly presented Diff: Easy Objective: LO 25-1

Before performing a review of a nonpublic entity's financial statements, an accountant should: A) complete a series of inquiries concerning the entity's procedures for recording, classifying, and summarizing transactions. B) obtain a sufficient level of knowledge of the accounting principles and practices of the industry in which the entity operates. C) inquire whether management has omitted substantially all of the disclosures required by generally accepted accounting principles. D) apply analytical procedures to provide limited assurance that no material modifications should be made to the financial statements.

B) obtain a sufficient level of knowledge of the accounting principles and practices of the industry in which the entity operates. Terms: Review of a nonpublic entity's financial statements Diff: Challenging Objective: LO 25-1

3) In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's Website complies with Trust Services principles? A) absolute B) reasonable C) limited D) moderate

B) reasonable Terms: WebTrust Diff: Easy Objective: LO 25-4

Attestation standards allow a CPA to perform all but which of the following services for a forecast or projection? A) compilation B) review C) examination D) agreed-upon procedures

B) review Terms: Attestation standards; Services for a forecast or projection Diff: Challenging Objective: LO 25-6

The concept of limited assurance is provided for in which of the following engagements? A) audit B) review C) compilation D) agreed-upon procedures

B) review Terms: Limited assurance; Engagements Diff: Moderate Objective: LO 25-1

An auditor who conducts an examination in accordance with generally accepted auditing standards and concludes that the financial statements are fairly presented in accordance with a comprehensive basis of accounting other than GAAP, should issue a: A) review report. B) special kind of report. C) qualified opinion. D) disclaimer of opinion.

B) special kind of report. Terms: Examination; Comprehensive basis of accounting Diff: Easy Objective: LO 25-8

Debt compliance letters are ordinarily addressed to: A) underwriters of securities. B) the client's audit committee. C) creditor financial institutions. D) the Securities and Exchange Commission.

C) creditor financial institutions. Terms: Debt compliance letters Diff: Moderate Objective: LO 25-8

Which of the following is not an element of examining a forecast? A) evaluating the preparation of the prospective financial statements B) understanding internal controls C) evaluating the support underlying the assumptions D) issuing an examination report

B) understanding internal controls Terms: Element of examining a forecast Diff: Moderate Objective: LO 25-6

Assurance provided by a review is substantially less than an audit. Which of the following statements is true regarding these services? A) A review requires more substantive evidence than an audit. B) An audit requires less evidence related to internal control than a review. C) A review requires less evidence than an audit. D) None of the above statements is true.

C) A review requires less evidence than an audit. Terms: Assurance; Review Diff: Moderate Objective: LO 25-1

Statements on Standards for Attestation Engagements are established by the: A) Securities and Exchange Commission. B) Public Company Accounting Oversight Board. C) Auditing Standards Board of the AICPA. D) Accounting and Review Services Committee.

C) Auditing Standards Board of the AICPA Terms: Statements on Standards for Attestation Engagements Diff: Easy Objective: LO 25-3

3) Which are prospective financial statements that present an entity's expected financial position, results of operations, and cash flows, to the best of the responsible party's knowledge and belief? A) Forecasts | Projections Yes | Yes B) Forecasts | Projections No | No C) Forecasts | Projections Yes | No D) Forecasts | Projections No | Yes

C) Forecasts | Projections Yes | No Terms: Prospective financial statements Diff: Moderate Objective: LO 25-6

Prospective financial statements are for general use or for limited use. General use refers to use by any third party, whereas limited use refers to use by third parties with which the responsible party is negotiating directly. Which of the following statements is not correct? A) Forecasts can be provided for general use. B) Forecasts can be provided for limited use. C) Projections can be provided for general use. D) Projections can be provided for limited use.

C) Projections can be provided for general use. Terms: Prospective financial statements; General use and limited use Diff: Challenging Objective: LO 25-6

What is the best reason that standards prohibit accepting an engagement on a projection for general use? A) The CPA's procedures would violate SSARS. B) Reports on projections are not well understood by the general public. C) Underlying hypothetical assumptions are difficult to interpret without obtaining additional information. D) The CPA is not qualified to report on the use of GAAP in the projected financial statement.

C) Underlying hypothetical assumptions are difficult to interpret without obtaining additional information. Terms: Standards for engagement on projection for general use Diff: Moderate Objective: LO 25-6

Distribution of which of the following types of reports is limited? A) audit B) review C) agreed-upon procedures D) examination

C) agreed-upon procedures Terms: Distribution of reports limited Diff: Moderate Objective: LO 25-3

The concept of reasonable assurance is provided for in which one of the following engagements? A) review B) compilation C) audit D) none of the above

C) audit Terms: Concept of reasonable assurance Diff: Moderate Objective: LO 25-1

Which of the following results in a conclusion that represents positive assurance? A) review B) compilation C) examination D) agreed upon procedure engagement

C) examination Terms: Positive assurance Diff: Easy Objective: LO 25-3

In which type of report would you read the following statement: "We believe that our examination provides a reasonable basis for our opinion."? A) review B) audit C) examination D) agreed-upon procedures

C) examination Terms: Report; Examination provides reasonable basis for our opinion Diff: Moderate Objective: LO 25-3

An accountant who reviews the financial statements of a nonpublic entity should issue a report stating that a review: A) is substantially equivalent in scope to an audit. B) is substantially more in scope than a compilation. C) is substantially less in scope than an audit. D) provides only limited assurance that the financial statements are fairly presented.

C) is substantially less in scope than an audit. Terms: Review of financial statement; Report Diff: Moderate Objective: LO 25-1

A CPA who is not independent and is associated with financial statements should disclaim an opinion with respect to those financial statements. The disclaimer should: A) clearly state the specific reasons for lack of independence. B) not mention any reason for the disclaimer other than that the CPA was unable to conduct the examination in accordance with generally accepted auditing standards. C) not describe the reason for lack of independence but should state specifically that the CPA is not independent. D) include a middle paragraph clearly describing the CPA's association with the client and explaining why the CPA was unable to gather sufficient competent evidential matter to warrant the expression of an opinion.

C) not describe the reason for lack of independence but should state specifically that the CPA is not independent. Terms: CPA not independent; Financial statements should disclaim an opinion Diff: Challenging Objective: LO 25-3

An examination results in a conclusion that represents ________ assurance. A) limited assurance B) negative C) positive D) unequivocal

C) positive Terms: Examination; Assurance Diff: Easy Objective: LO 25-3

Negative assurance is not permissible in: A) reports based upon a review engagement. B) letters required by security underwriters for data pertinent to SEC registration statements. C) reports based on an audit of interim financial statements of a closely held business entity. D) reports relating to the results of agreed-upon procedures to one or more specified elements, accounts, or items of financial statement.

C) reports based on an audit of interim financial statements of a closely held business entity. Terms: Negative assurance Diff: Challenging Objective: LO 25-1

An agreed-upon procedures engagement is one in which: A) the auditor and management agree that procedures will be applied to all accounts and circumstances. B) the auditor and management agree that procedures will not be applied to all accounts and circumstances. C) the auditor and management or a third party agree that the engagement will be limited to certain specific procedures. D) the auditor and management or a 3rd party agree that the auditor will apply his or her judgment to determine procedures to be performed.

C) the auditor and management or a third party agree that the engagement will be limited to certain specific procedures. Terms: Agreed-upon procedures engagement Diff: Moderate Objective: LO 25-3

4) Which are prospective financial statements that present an entity's financial position, results of operations, and cash flows, to the best of the responsible party's knowledge and belief, given one or more hypothetical assumptions? A) Forecasts | Projections Yes | Yes B) Forecasts | Projections No | No C) Forecasts | Projections Yes | No D) Forecasts | Projections No | Yes

D) Forecasts | Projections No | Yes Terms: Prospective financial statements; one or more hypothetical assumptions Diff: Moderate Objective: LO 25-6

2) Which of the following is not one of the general types of prospective financial statements included in the attestation standards? A) Forecasts Projections Earnings estimates No No Yes B) Forecasts Projections Earnings estimates No Yes No C) Forecasts Projections Earnings estimates Yes Yes No D) Forecasts | Projections | Earnings estimates Yes | No | Yes

D) Forecasts | Projections | Earnings estimates Yes | No | Yes Terms: General types of prospective financial statements Diff: Moderate Objective: LO 25-6

For compilations, an accountant does which of the following? A) Obtain an understanding of internal control. B) Perform tests of controls. C) Perform tests of transactions. D) None of the above E) All of the above

D) None of the above Terms: Compilation Diff: Moderate Objective: LO 25-1

You are a CPA retained by the manager of a cooperative retirement village to do "write-up work." You are expected to prepare unaudited financial statements with each page marked "unaudited" and accompanied by a disclaimer of opinion stating no audit was performed. In performing the work, you discover that there are no invoices to support a claim for a $25,000 disbursement. The manager informs you that all the disbursements are proper. What should you do? A) Submit the expected statements but omit $25,000 of unsupported disbursements. B) Include the unsupported disbursements in the statements since you are not expected to make an audit. C) Obtain from the manager a written statement that you informed him of the missing invoices and include his assurance that the disbursements are proper. D) Notify the owners that some of the claimed disbursements are unsupported and withdraw if the situation is not satisfactorily

D) Notify the owners that some of the claimed disbursements are unsupported and withdraw if the situation is not satisfactorily Terms: Unaudited financial statements accompanied with a disclaimer of opinion; disbursements with no supporting invoices discovered Diff: Challenging Objective: LO 25-1

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).

D) Statements on Standards for Accounting and Review Services (SSARS). Terms: Standards; Unaudited financial statements; Private companies Diff: Easy Objective: LO 25-1

Which of the following is not a standard contained in both the Attestation Standards and Generally Accepted Auditing Standards with regards to the standards of field work? A) The examination is to be performed by a person having adequate technical training.. B) An independence in mental attitude is to be maintained. C) Sufficient evidence is to be obtained. D) The practitioner must obtain a sufficient understanding of the client's internal control.

D) The practitioner must obtain a sufficient understanding of the client's internal control. Terms: Attestation standard; Standards of fieldwork Diff: Moderate Objective: LO 25-3

1) As a CPA you have been asked to examine an entity's financial projections. Acceptance of the engagement would be appropriate if distribution is limited to: A) stockholders of record as of the date of the report. B) potential investors and creditors by posting on the Company's website. C) general public by posting on the company's website. D) a financial institution for which the company is negotiating a loan.

D) a financial institution for which the company is negotiating a loan. Terms: Examine financial projections; Distribution limited to Diff: Moderate Objective: LO 25-6

The quarterly reports submitted to the SEC by the client: A) have to be audited and the CPA firm must be identified. B) do not have to be audited, but the CPA firm which does the year-end audit must be identified. C) have to be audited, but the CPA firm does not have to be identified. D) do not have to be audited, but the CPA firm which does the year-end audit must review the quarterly statements before they are submitted to the SEC.

D) do not have to be audited, but the CPA firm which does the year-end audit must review the quarterly statements before they are submitted to the SEC. Terms: Quarterly reports; SEC Diff: Moderate Objective: LO 25-2

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.

D) even if it is not independent. Terms: Compilation report Diff: Easy Objective: LO 25-1

An auditor who was engaged to perform an examination of the financial statements of a nonpublic entity has been asked by the client to refrain from performing various audit procedures and change the nature of the engagement to a review of the financial statements in accordance with standards established by the AICPA. The client's request was made because the cost to complete the examination was significant. Under these circumstances, the auditor would most likely: A) qualify the auditor's report and refer to the scope limitation. B) view the request as an indication of a possible irregularity. C) complete the examination that was in progress. D) honor the client's request.

D) honor the client's request. Terms: Examination of financial statements of a nonpublic entity Diff: Challenging Objective: LO 25-1

An accountant has accepted an engagement in which the audit procedures of inquiry and analytical procedures will be employed. These procedures will form the basis for issuance of: A) a compilation report. B) audit report on supplemental information issued by the client. C) management advisory report requested by the audit committee. D) review report on comparative financial statements for a non-public company.

D) review report on comparative financial statements for a non-public company. Terms: Engagement with audit procedures of inquiry and analytically procedures Diff: Moderate Objective: LO 25-1

Specific attestation standards have been developed in all but which of the following areas? A) pro forma financial information B) compliance with laws and regulations C) prospective financial statements D) standards have been developed for all of the above

D) standards have been developed for all of the above Terms: Specific attestation standards Diff: Moderate Objective: LO 25-3

An accountant's standard report on a compilation of a projection should not include a: A) statement that a compilation of a projection is limited in scope. B) separate paragraph that describes the limitations on the presentation's usefulness. C) disclaimer of responsibility to update the report for events occurring after the report's date. D) statement that the accountant expresses only limited assurance that the results may be achieved.

D) statement that the accountant expresses only limited assurance that the results may be achieved. Terms: Standard report on a compilation of a projection Diff: Challenging Objective: LO 25-6

2) The WebTrust service requires that a CPA update its testing of the e-commerce aspects of a entity's Web site at least every: A) ninety days. B) month. C) six months. D) twelve months.

D) twelve months. Terms: WebTrust; Update testing of e-commerce aspects Diff: Easy Objective: LO 25-4

True or False In a Type 2​ engagement, the service auditor performs tests of the operating effectiveness of the​ controls, but does not have to perform any of the procedures performed in a Type 1 engagement.

False

True or False Examination attestation engagements result in a conclusion that is in a positive​ form, whereas review attestation engagements result in a conclusion in the form of a negative assurance.

True

True or False: If an auditor performs a compilation but lacks​ independence, an additional paragraph must be added which states​ that: "We are not independent with respect to XYZ​ Company."

True

True or False: When performing a review of interim information for a public​ company, the accountant ordinarily does not perform tests of the accounting​ records, independent​ confirmations, or physical examinations.

True

What type of SOC report is intended to meet the needs of entities that use service organizations and their​ auditors, who are responsible for understanding internal controls over financial reporting at service​ organizations? a. SOC 1 report b. SOC 2 report c. SOC 3 report d. none of the above

a. SOC 1 report

What type of SOC report is intended to meet the needs of a broad range of users who need information and assurance about controls at a service organization that affect the​ security, availability, and processing integrity of the systems the service organization uses to process​ users' data and the confidentiality and privacy of the information processed by these​ systems? a. SOC 1 report b. SOC 2 report c. SOC 3 report d. none of the above

b. SOC 2 report

The highest level of assurance is provided for in which of the following engagements? a. review b. preparation service c. audit d. compilation

c. audit Level of assurance/Evidence Accumulated: Audit - High/Extensive Review - Limited/Significant Compilation or Preparation - None/Minimal

Which of the following attestation engagements result in a conclusion that represents positive​ assurance? a. ​agreed-upon procedure engagement b. review c. examination d. compilation

c. examination

When a CPA performs an examination engagement under the attestation standards, the amount of evidence gathered is ________ and the level of assurance is ________. a. extensive, varying b. significant, high c. extensive, high d. significant, moderate

c. extensive, high

When performing a review​ service, auditors must make inquiries of management. Which of the following inquiries are typically made of​ management? a. What unusual or significant transactions occurred this​ year? b. Is each account on the financial statements prepared in conformity with accounting standards and consistently​ applied? c. Do you have knowledge of an actual or suspected​ fraud? d. All of the above are inquiries typically made of management.

d. All of the above are inquiries typically made of management.

The service​ auditor's Type 2 report contains a. an opinion on the service​ company's website. b. an opinion only on the operating effectiveness of the controls. c. an opinion on the reasonableness of the financial statements. d. the two opinions about the description and suitability of the design of controls that are issued in a Type 1 report plus an additional opinion about the operating effectiveness of controls throughout the period.

d. the two opinions about the description and suitability of the design of controls that are issued in a Type 1 report plus an additional opinion about the operating effectiveness of controls throughout the period.