Chapter 19

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

1. When this type of engagement is undertaken, the auditor's report should disclaim an opinion on conformity with AICPA presentation guidelines. 2. This type of engagement involves issuing a report stating whether a prospective financial statement is a reasonable basis for the forecast or the projection given hypothetical assumptions. 3. This type of engagement cannot be performed with respect to prospective financial statements. 4. This type of engagement can only be performed if the client takes responsibility for the procedures involved in the engagement. 5. The report of this type of engagement should state the practitioner's opinion on whether the projective financial statements conform with AICPA guidelines. 6. The report on only this type of engagement for a financial forecast is appropriate for general use. 7. An alert in a separate paragraph that restricts use is included in a report on this type of engagement for a financial forecast.

1. Ageed-upon procedures 2. Examination 3. Review 4. Agreed-upon procedures 5. Examination 6. Examination 7. Agree-upon procedures

Rable Co., a nonissuer, has requested you to examine a prospective financial presentation of sales for 20X2. It has presented the following information and a list of statements that may become part of the projection. For each statement, choose the best description from the list. 1. The projected sales include a 10% increase in the South Region's sales in 20X2. 2. The total row reflects the combined sales of the North and the South Regions. 3. The sales reflect the expectation that competition will remain stable in the coming year. 4. Model Y reflects an increase of 20% that is expected if the product is redesigned in 20X2. The redesign is currently scheduled for 20X4. 5. Management has secured a contract with the supplier to provide sufficient numbers of each model to meet the projection in 20X2. 6. North Region sales reflect an increase based on an increase in the advertising budget of 20%. But advertising expenditures for the North and South Regions are expected to remain unchanged.

1. An assumption 2. Niether an assumption nor a hypothetical assumption 3. An assumption 4. A hypothetical assumption 5. Neither an assumption nor a hypothetical assumption 6. A hypothetical assumption

Abe, CPA, is preparing a draft of an examination report for XYZ Company in accordance with the Statements on Standards for Attestation Engagements. The report pertains to subject matter for general use for which suitable criteria exist that are available to all users. A written assertion has been obtained by Abe from XYZ Company. Abe has concluded that the information is presented in accordance with the criteria. Certain words or phrases in the following report have been replaced by numbers (e.g., [1], [2], etc.). Select from the option list provided the word or phrase that should replace each number. Independent Accountant's Report We have [1] the accompanying schedule of investment returns of XYZ Company for the year ended December 31, 20X0. XYZ Company's management [2] the schedule of investment returns. Our [3] is to express an opinion based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether the schedule of investment returns is in accordance with (or based on) the criteria, in all material respects. An examination involves performing procedures to obtain evidence about the schedule of investment returns. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of [4] of the schedule of investment returns, whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide [5]. In our opinion, the schedule referred to above presents the investment returns of XYZ Company for the year ended December 31, 20X0, in accordance with (or based on) criteria set forth by the National Investment Brokers Manual as identified in Note 1, [6]. Abe, CPA Any City, State February 2, 20X1

1. Examined 2. Is responsible for 3. Responsibility 4. The risk of material misstatment 5. A reasonable basis for our opinion 6. In all material respects

1. EZ Write-Down (Not So Easy) 2. Banking with Calculators 3. Numbers Flying 4. Not a Corny Joke 5. To Merge or Not to Merge 6. Slow and Steady (but Profitable)

1. Financial forecast 2. Financial projection 3. Pro forma financial information 4. Compilation 5. Agreed-upon procedures 6. Preparation

An auditing firm is conducting an attestation engagement to prepare a report on compliance with specified requirements based on an examination. The engagement is in accordance with the AICPA standards. Certain words or phrases in the following report have been replaced by numbers (e.g., [1], [2], etc.). Select from the option list provided the word or phrase that should replace each number. Independent Accountant's Report To: Board of Directors or Shareholders of XYZ Company We have examined XYZ Company's compliance with the Trust Bond Indenture of 1/1/20X1 (requirements one through eight) for the year ended December 31, 20X2. [1] responsible for XYZ Company's compliance with the specified requirements. Our [2] is to express an opinion on XYZ Company's compliance based on our examination. Our examination was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain [3] about whether XYZ Company complied, in all material respects, with the specified requirements referenced above. An examination involves performing procedures to obtain evidence about whether XYZ Company complied with the specified requirements. The nature, timing, and extent of the procedures selected depend on our judgment, including an assessment of the [4], whether due to fraud or error. We believe that the evidence we obtained is sufficient and appropriate to provide a reasonable basis for our opinion. Our examination [5] on XYZ Company's compliance with specific requirements. In our opinion, XYZ Company complied, in all material respects, with the aforementioned requirements for the year ended December 31, 20X2.

1. Management is 2. Responsibility 3. Reasonable assurance 4. Risks of material noncomplicance 5. Does not provide a legal determination

The following is a draft of an agreed-upon procedures report prepared by Bali, CPA, in accordance with the Statements on Standards for Attestation Engagements. Certain words or phrases have been replaced by numbers (e.g., [1], [2], etc.). Select from the option list provided the word or phrase that should replace the number in the draft report below. Independent Practitioner's Reporton Applying Agreed-Upon Procedures To the Audit Committees and Managements of ABC, Inc., and XYZ Fund: We have [1], which were agreed to by the audit committees and managements of ABC, Inc., and XYZ Fund, solely to assist you in evaluating the accompanying Statement of Investment Performance Statistics of XYZ Fund (prepared in accordance with the criteria specified therein) for the year ended December 31, 20X1. XYZ Fund's management is responsible for the Statement of Investment Performance Statistics. The sufficiency of these procedures [2]. Consequently, we make no representation regarding the sufficiency of the procedures performed either for the purpose for which this report has been requested or for any other purpose. We obtained the underlying investment returns from an independent party. Those returns agreed to those presented in the Statement referred to above. We also recalculated the statistics presented in the Statement referred to above. Those statistics reconciled to those presented in the Statement. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, [3] the accompanying Statement of Investment Performance Statistics of XYZ Fund. Accordingly, we do not express such [4]. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is [5] the audit committees and managements of ABC, Inc., and XYZ Fund and is not intended to be and should not be used by anyone other than these specified parties. Bali, CPA Any City, State January 20, 20X2

1. Performed the procedures enumerated below 2. Is soley the responsibility of the parties specified n this report 3. The objective of which would be the expression of an opinion or conclusion, respectively, on 4. An opinion or conclusion 5. Intended solely for the information and use of

1. Examination of a financial projection 2. Review of pro forma financial information 3. Review of a financial forecast 4. Agreed-upon procedures applied to an entity's compliance with specified requirements 5. Review of an entity's compliance with specified requirements

1. Positive assurance; Limited use 2. Limited (or negative assurance; General use 3. Cannot issue report; No use (cannot issue report) 4. No assurance but results of porcedures; Limited use 5. Cannot issue report; No use (cannot issue report)

1. ABC Company 2. DEF Company 3. GHI Company 4. JKL Company 5. MNO Company 6. PQR Company 7. STU Company 8. WXY Company

1. a. Examination engagement b. ABC Company c. Yes 2. a. Agreed-upon procedures engagement b. Fabulous Dental c. No 3. a. Agreed-upon procedures engagement b. GHI Company c. No 4. a. Review engagement b. JKL Company c. Yes 5. a. Agree-upon procedures engagement b. MNO Company c. No 6. a. Review engagement b. Alphabet, Inc c. No 7. a. Review engagement b. Ashley Consultinng c. No 8. a. Examination engagement b. WXY Company c. Yes

Jason accepted an engagement to apply attestation standards to compliance with requirements specified in a loan agreement. In an examination of compliance, what is the guideline regarding the assurance to be obtained? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields.

AT-C 315.11

Elja Associates performed an attest engagement to report on Brooktree Pharmaceuticals' Year 1 compliance with federal laws for quality assurance of a specific medication manufactured by the company. The engagement took place from December 15, Year 1, through February 10, Year 2, the date of the examination report. The practitioner found Brooktree Pharmaceuticals to be in compliance with the laws during Year 1. However, separately they became aware that the company was not in compliance with the laws during the first week of February, Year 2. Elja determined that this noncompliance was significant. Which section of the authoritative literature describes how Elja should report such noncompliance? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields.

AT-C 315.22

Trees Corp. hired Grace, CPA, to review its Year 2, second quarter financial statements and associated management's discussion and analysis. Grace completed the review procedures on July 20, Year 2, and the statements are for the six months ended June 30, Year 2. Which section of the authoritative literature specifies the appropriate date of Grace's report on the review of the management's discussion and analysis? Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields.

AT-C 395.86

Management informed your firm's engagement partner that a prospective lender made a preliminary request for a CPA's letter regarding the company's solvency. The partner requested that you find guidance, if any, in AICPA Professional Standards regarding whether a practitioner may provide assurance about solvency. Enter your response in the answer fields below. Guidance on correctly structuring your response appears above and below the answer fields.

AT-C 9105.03

A new intern in the office of Baldwin and Associates, CPAs, prepared an examination report, a review report, and an agreed-upon procedures report using notes the partner had made from the AICPA attestation standards. Unfortunately, the notes were mixed resulting in errors (e.g., a statement on the examination report belongs on the review report). The intern has asked for your help. Using the reference numbers on the attached exhibits and the answer choices below, put the statements under the correct report (i.e., examination, review, or agreed-upon procedures). The statements are already in the correct order. Some of these are correct and have been filled in for you. Statement 1 - 1a - 1b - 1c Statement 2 - 2a - 2b - 2c Statement 3 Statement 4 - 4a - 4b - 4c Statement 5 Statement 6 Statement 7 Statement 8 Statement 9 Statement 10 - 10a - 10b - 10c

Statement 1 - 1a - 1b - 1c Statement 2 - 2a - 2b - 2c Statement 3 - 3c - 3a - 3b Statement 4 - 4a - 4b - 4c Statement 5 - 5b - 5c- 5a Statement 6 - 6c - delete statement - 6a Statement 7 - delete statement - 7b - 7c Statement 8 - 8b - 8a - delete statement Statement 9 - 9a - 9c - 9b Statement 10 - 10a - 10b - 10c


संबंधित स्टडी सेट्स

Mark Tan Files Math Questions, HESI A&P Questions, HESI Reading Questions, Hesi Vocabulary, HESI A2: Math practice test, BEST hesi a2 version 1 and 2, HESI Math Questions!!!, Hesi A2 Vocabulary from book, HESI A2 - Reading Comprehension!, hesi A2 Entranc

View Set

Chapter 21 Reaction, Revolution, and Romanticism, 1815-1850

View Set

Mastering Math Facts Multiplication Set K (9x8, 8x9, 6x6)

View Set

Nursing Care of Children ATI Practice Exam with NGN

View Set

ATI RN Client and Mental Health Team Member Safety Assessment

View Set

My overview of whats important in biology

View Set

Property & Casualty Insurance Practice Exam (75 items)

View Set