Auditing-Module A

Assurance services ______.

are more customized than attestation services consist of a large group of activities are similar to consulting services

Agreed-upon procedures reports ______.

are restricted to the specified users who defined the work on the engagement

Independent professional services that improve the quality of information, or its context, for decision makers" is the definition of _____ services.

assurance

Historical or prospective performance, physical characteristics and break-even analyses are all potential _______ engagement subjects.

attestation

Principles and related criteria in the performance of trust service engagements are security,_____ ,______ ,______ and processing integrity.

availability confidentiality privacy

Both a Type 1 and Type 2 SOC report include ______

information regarding the design of the controls a description of the service organization's system

True or false: A written letter of management representations is required in a compliance examination.

true

In connection with examination engagements for compliance, accountants are required to consider ______risk, _______risk and _____risk.

inherent control detection

In order to perform review services, auditors ______ be independent.

must

A report on compiled financial statements ______.

must state the auditors' lack of independence, if applicable must state management's responsibility for the statements

A preparation of financial statement engagement requires ______.

no procedures be performed "no assurance is provided" on each page of the statements

When performing a compilation engagement, the accountant should ______.

not express any assurances read the financial statements

Provided prospective financial information that omits any of the required minimum items is known as a(n) ______ ______that is only appropriate for specific users limited use).

partial presentation

Prospective financial information based on the occurrence of one or more hypothetical events that change the entity's existing business structure is a financial _______.

projection

A service performed by accountants to obtain limited assurance that no material modifications should be made to the financial statements in order for them to be in conformity with the applicable reporting framework is a(n) ________ .

review

Only a limited level of assurance is provided by an attestation _____.

review

When broker-dealers file an exemption report under Rule 17a-5, the report is subject to a(n) ____ engagement under AT2.

review

Payroll processing companies, bank trust departments and computerized information processing centers are all examples of ______ organizations.

service

Special-purpose framework financial statements ______.

should not use titles normally associated with GAAP statements

Other comprehensive bases of accounting (OCBOA) are also known as ______ _____frameworks.

special purpose

Tax basis, cash basis and modified cash basis are all example of _______ ________frameworks.

special purpose

To define a set of professional attestation and advisory services based on a core set of principles and criteria that addresses the risk and opportunities of IT-enables systems and privacy programs, the AICPA has adopted the term ____ _____.

trust services

When performing a compilation engagement, the accountant should ______.

understand the entity's business obtain an engagement letter

Assurance on trust service principles is provided for limited use on an SOC _____ report and for general use on a SOC _____ report.

2 3

The difference between a Type 1 and a Type 2 SOC report is that only a Type ______.

2 report addresses the operating effectiveness of controls

True or false: A compilation engagement report specifically indicates the procedures the accountant performed to verify management's information.

False

The AICPA and the Canadian Institute of Chartered Accountants developed ______ to focus on a company's systems as a means of increasing the reliability of B-to-B computer transactions.

SysTrust Services

The AICPA and the Canadian Institute of Chartered Accountants developed ______ to provide assurance to the consumer on the reliability of Internet websites.

WebTrust Services

Accountants may perform review engagements on ______.

a single financial statement or on specific financial statement elements or accounts

Minimum items includes in a set of prospective financial statements include ______.

a summary of significant accounting policies a caveat that expected results might not be achieved significant changes in financial position

When a client requests to change an audit to a review engagement, the auditor should ______.

agree to the change if needs have changed

Types of attestation engagements include ______.

agreed-upon procedures review examination

Levels of accountant service related to compliance are ______.

an examination engagement agreed-upon procedures

A review of unaudited financial statements includes ______.

both an engagement letter and written representations from management

An attestation engagement that is similar in substance to an audit, but may be limited in terms of focus is called a(n) _____ .

examination

True or false: Outsourcing non core functions to service organizations absolves management of its responsibility for internal control over those functions.

false

Prospective financial information based on expected conditions and courses of action is a financial ______ .

forecast

If auditors expressed a disclaimer or adverse opinion on the complete set of financial statements, an unmodified opinion ______ be expressed on a single financial statement.

cannot

Assembling a set of financial statements from account information supplied by the entity's management without providing any assurance on the accuracy or completeness of the information is a(n)______ .

compilation

Assisting in the preparation of financial information without providing any assurance or accuracy on the completeness of the information is the purpose of a(n) ______engagement.

compilation

Rule 17a-5 requires the broker's or dealer's compliance report includes assertions that the broker-dealer ______.

had effective internal control over compliance during the year and at year-end was in compliance with the reserve requirement rule at fiscal year-end was in compliance with the net capital rule at fiscal year-end

Special-purpose framework statements ______.

have the same auditing standards as GAAP can be audited, reviewed or compiled

Obtaining review evidence ______ require analytical procedures.

does

A preparation of financial statement engagement ______.

does not require independence to be assessed should include an engagement letter

If auditors issued a disclaimer or adverse opinion on the complete set of financial statements, the firm may separately report only on an element, account, or item in the financial statements if the ______.

element, account, or item is not related to equity or net income element is not a major portion of the financial statements

Agreed-upon procedures reports ______.

state the work was not an audit describe specific findings describe procedures users deemed necessary identify the specified users

Broker-dealers who do not hold customer funds ______.

still must provide auditors some degree of assurance must file an exemption report

To conduct an engagement related to compliance, ______.

sufficient evidence must be available to support management's evaluation management must accept responsibility evaluation and measurement against reasonable criteria must be possible

Corporate social responsibility is another term for _____.

sustainability

The triple-bottom-line of economic viability, social responsibility and environmental responsibility is the AICPA's definition of _______ .

sustainability

The examination of internal control over compliance under Rule 17a-5 covers controls ______.

throughout the fiscal period and at year-end