A5

Question 1

Scope limitation triggers what kind of audit opinion?

Answer 1

Disclaimer or withdrawal

Question 2

Material weakness triggers what kind of audit opinion?

Answer 2

Adverse Opinion

Question 3

NEGATIVE assurance can be expressed when….

Answer 3

Accountant is requested to report on the results of performing a review of management’s assertions.

Question 4

Attestation Services EXCLUDE=

Answer 4

Advocacy services & Consulting Services

Question 5

Practitioner (auditor) report on AUP that is in the form of procedures & findings should contain…

Answer 5

A statement that Subject Matter is the responsibility of the responsible party.

Question 6

Prospective Financial forecast

Answer 6

Can be used for General Use and some ocacions limited

pensar que el weather forecast everybody has access to it so can be used for General use

Question 7

Prospective Financial projections

Answer 7

Can’t be used for General Use ONLY LIMITED

They will require a paragraph restricting the use and distribution of the report.

Question 8

Standard report on COMPILATION of PROJECTION should NOT include

Answer 8

Statement that the accountant expresses only limited assurance that the results may be achieved

Compilation=NO ASSURANCE

Question 9

examination of entity’s compliance w/specified requirements practitioner should…

Answer 9

Asses control risk

Question 10

Change from audit to AUP… auditor should report…

Answer 10

Not include a reference to the original audit engagement but may include reference to the procedures that have been performed

Question 11

Accepting an engagement to compile an entity’s financial projections would be inappropriate if they include

Answer 11

Offering statement of the entity’s initial public offering of common stock

IPO

Question 12

If practitioner concludes that the assumptions did not provide a reasonable basis for the prospective FS what type of opinion should be granted?

Answer 12

ADVERSE

Question 13

Condition/policy that must exist in AUP is that practitioner is

Answer 13

Independent from the client & other specified parties

Question 14

Government Audit Standards defines 3 types of engagements

Answer 14

Financial Audits, Attest engagements, and performance audits

Question 15

Prior to the issuance of the practitioner’s report,…..

Answer 15

The engaging party acknowledges that the procedures performed were appropriate to meet the intended purpose of the engagement.

Question 16

In a COMPLIANCE engagement auditor DOES NOT

Answer 16

Express and OPINION on the effectiveness of IC over compliance.
Documentation of conclusions opinion would not be appropriate

Question 17

In performing Audit in accordance with GAGAS (YELLOW BOOK) the auditor

Answer 17

Accepts greater reporting responsibilities that under GAAS

Question 18

What procedures should an accountant perform during engagement to compile prospective GS

Answer 18

Make inquiries about accounting principles used in the preparation of the prospective FS

Question 19

When performing attestation engagements related to prospective FS accountant should ensure that

Answer 19

All significant assumptions used to prepare FS ae disclosed

Question 20

AUP report always to contain

Answer 20

Reference to AICPA

Question 21

AUP practitioner should

Answer 21

Assess control Risk

Question 22

Materiality considerations in AUP & GAAS

Answer 22

are different