A2 - Other Reports - Attest Engagements

Question 1

When a CPA examines a client’s projected financial statements, the CPA’s report should:

Answer 1

State that the CPA performed procedures to evaluate management’s assumptions

Question 2

An attest engagement is one in which a CPA is engaged to:

Answer 2

Issue an examination, a review, or an agreed-upon procedures report on subject matter, or on an assertion about the subject matter, that is the responsibility of another party.

Question 3

A report on agreed-upon procedures should include:

Answer 3

A list of procedures performed and the related findings. An opinion is NOT provided.

Question 4

An accountant’s compilation report on a financial forecast should include a statement that:

Answer 4

There will be differences between the forecasted and actual results.

Question 5

An accountant’s report on a review of pro forma financial information should include a:

Answer 5

Reference to the financial statements from which the historical financial information is derived.

Question 6

An accountant’s compilation report on a financial forecast should include a statement that the:

Answer 6

Compilation does not include evaluation of the support of the assumptions underlying the forecast.

Question 7

Negative assurance may be expressed when an accountant is requested to report on the:

Answer 7

Results of performing a review of management’s assertion.