a-5

Question 1

CAPE CORP

Answer 1

COMPLIANCE with all attestation standards relevant to the engagement
ACCEPTANCE and continuance are satisfactorily performed for client relationships
PRECONDITIONS for an attestation engagement
ENGAGMENT documentation standards for timeliness, retention, ownership, and confidentiality apply
CHANGE in terms of engagement is acceptable if reasonable
OTHER practitioners work may be used for an engagement
RESPONSIBILITY for quality control
PROFFESTIONAL skepticism, including inherent risk, control risk, and detection risk

Question 2

Examination reporting

Answer 2

Provides positive opinion and high level of assurance. AICPA

Question 3

Review reporting

Answer 3

Provides a negative opinion and a moderate level of assurance…we do not express an opinion AICPA

Question 4

SSAE

Answer 4

the practitioner should refer to Statements on Standards for Attestation Engagements for an attestation engagement. In an attest service, the practitioner is engaged to issue a report on subject matter or on an assertion about the subject matter

Question 5

I AM SURE

Answer 5

INDEPENDENCE of the practitioner
AGREEMENT of the parties on what procedures are to be applied
MEASUREMENT of subject matter must be consistent
The engaging client takes responsibility for the SUFFICIENCY of the designated procedures
USE of the report can be general or restricted to specified parties
The client is RESPONSIBLE for the subject matter
ENGAGEMENT to perform agreed upon procedures on prospective financial statements must include a summary of significant assumptions used for the prospective financial statements

Question 6

Preparation engagement

Answer 6

Includes a statement on each page that says, “no assurance is provided” SSARS

Question 7

Compilation engagement

Answer 7

Does not express an opinion or assurance, includes a caution about achievability, and states that the accountant has no responsibility to update

Question 8

Examination Engagement

Answer 8

There are two parts: Financial statements presented in conformity w/guidlines and assumptions provide a reasonable basis for financial statements. It also includes a caution about achievability and states that the accountant has no responsibility to update. (SSAE)

Question 9

Agreed-upon Procedures

Answer 9

Include a caution about achievability and state that the accountant has no responsibility to update. No assurance. Are a type of attestation engagement. (SSAE)

Question 10

Financial Projection

Answer 10

A hypothetical, reflects the financial position and results of operations based on the “what if” scenario
Not intended for general use

Question 11

Financial Forecasts

Answer 11

Expected results, reflects the expected financial results of a future period

Question 12

Service Organization

Answer 12

Outside organization used by an entity to process some portion of their accounting transactions

Question 13

SOC 1

Answer 13

Relevant to the user entity’s system of internal control over financial reporting. At one point in time. Auditor is mainly concerned with soc1

Question 14

SOC 2

Answer 14

Relevant to the security and confidentiality of the information processed by the service organization. Focused on trusts services. Over a period of time

Question 15

Type 1 report

Answer 15

Report on the design and implementation of a service organizations identified controls. Does not provide assurance on operating effectiveness

Question 16

Type 2 report

Answer 16

Report on the design, implementation, and operating effectiveness of a service organizations controls

Question 17

Compliance Reporting

Answer 17

Providing reasonable (negative) assurance of the detection of material misstatements resulting from noncompliance. SAS

Question 18

GAGAS

Answer 18

Defines “unconditional requirements” with which the auditor must comply, and “presumptively mandatory requirements” with which the auditor should comply. Report on internal controls over financial reporting not compliance. Does not require auditor to express opinion on internal controls

Question 19

Single Audits

Answer 19

Audit of the entity’s financial statements and reporting on a separate schedule of expenditures of federal awards in relation to those financial statements. Compliance audit of federal awards expended during the year as a basis for issuing additional reports on compliance.

Question 20

2 CFR 200 single audit

Answer 20

expands the auditor’s responsibilities to include procedures designed to test and report on compliance matters having a direct and material effect on major federal award programs.

Question 21

The three types of engagement’s defined by Government Audit Standards

Answer 21

Financial audits, attest engagements, and performance audits