A2 - Attest Engagements

Question 1

What type of opinion should be issued when a CPA examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast?

Answer 1

An adverse opinion and the assumptions should be described in the accountant’s report

Question 2

What are they two types of trust services performed as an attest engagement?

Answer 2

WebTrust and SysTrust engagements

Question 3

Should compilations include the statement that, “hypothetical assumptions are reasonable”?

Answer 3

No; a compilation does not assess the reasonableness of assumptions

Question 4

T/F: An engagement that applies agreed-upon procedures should restrict the use to specified users

Answer 4

True; the standards by which it its being measured are not widely (generally) known

Question 5

T/F: Both financial projections and financial forecasts are appropriate for general use

Answer 5

False; only the financial forecast is appropriate for general use

Question 6

What is a conceptual similarity between generally accepted auditing standards and the attestation standards?

Answer 6

Both require the CPA be independent in mental attitude

Question 7

What does SSAE stand for?

Answer 7

Statements on Standards for Attestation Engagements