A2-6
A CPA is required to comply with the provisions of Statements on Standards for Attestation Engagements (SSAE) when engaged to:
Review management's discussion and analysis (MD&A) prepared pursuant to rules and regulations adopted by the SEC
A CPA in public practice is required to comply with the provisions of the Statements on Standards for Attestation Engagements (SSAE) when: 1. testifying as an expert witness in accounting and auditing matters given stipulated facts 2. compiling a client's financial projection that presents a hypothetical course of action
2 SSAE provide guidance with respect to compilation of a financial projection, but they do not address services involving advocating for a client
What's the attest engagement that provides assurance on the reliability of any defined electronic system?
CPA SysTrust
A practitioner may perform an agreed-upon procedures engagement on prospective financial statements provided that which of the following is met? 1. the prospective financial statements include a summary of significant assumptions 2. the client agrees that the practitioner will decide appropriate procedures to be performed 3. the practitioner sets the criteria to be used in the determination of findings
1
Which of the following items should be included in prospective financial statements issued in an attestation engagement performed in accordance with Statements on Standards for Attestation Engagements? 1. All significant assumptions used to prepare the financial statements 2. All significant assertions used to prepare the financial statements
1
Which of the following prospective financial statements is (are) appropriate for general use? 1. financial forecast 2. financial projection
1 only
An examination of a financial forecast is a professional service that involves:
1. evaluating the preparation of the prospective financial statements 2. evaluating the support underlying the assumptions 3. evaluating the presentation of the prospective financial statements in conformity with AICPA guidelines 4. issuing an examination report
A report on ____________ procedures should include a list of the procedures performed (or reference thereto) and the related findings
Agreed- upon
Both GAAS and attestation standards are applicable to engagements regarding financial forecasts and projections (Y or N)
No Attestation standards, but not auditing standards, apply to engagements regarding financial forecasts and projections.
Prospective financial information presented in the format of historical financial statements that omit either gross profit or net income is deemed to be a
Partial presentation --presentations of prospective financial information which would not ordinarily be appropriate for general use because they omit one or more of these essential elements 1. sales or gross revenue 2. gross profit or cost of sales 3. unusual or infrequently occurring items 4. provision for income taxes 5. discontinued operations or extraordinary items 6. income from continuing operations 7. net income 8. earnings per share 9. significant changes in financial position
When a CPA examines a client's projected financial statements, the CPA's report should
State that the CPA performed procedures to evaluate management's assumptions
An entity engaged a CPA to determine whether the client's web sites meet defined criteria for standard business practices and controls over transaction integrity and information protection. In performing this engagement, the CPA should comply with the provisions of
Statements on Standards for Attestation Engagements
A CPA is engaged to examine an entity's financial forecast. The CPA believes that several significant assumptions do not provide a reasonable basis for the forecast. Under these circumstances, the CPA should issue a
adverse opinion
An accountant's report on a review of pro forma financial information should include a:
reference to the financial statements from which the historical information is derived and a statement as to whether such financial statements were audited or reviewed
