A6

Question 1

Levels of Service (SSARS Engagements) highest to lowest

Answer 1

Review
Compilation
Preparation

Question 2

which level has no assurance and is not an attest engagement nor need independence. does not require a report

Answer 2

preparation

Question 3

which level has no assurance, is an attest engagement, requires independence but can disclose if not. and requires a report

Answer 3

Compilation

Question 4

Which level has limited assurance, assurance and attest engagements, requires report and indpendence

Answer 4

Review

Question 5

what should each page of FS for a preparation engagmenet incldue

Answer 5

that there is no assurance to the FS

Question 6

What are the steps required in a Review engagment

Answer 6

U - understanding w client
L - learn entity business
I - Inquires with internal personnel
A - Analytical Procedures
R - Review other procedures
C - Client rep letter
P - Professional judgement
A - accountant communication

Question 7

when are modifications made to a standard review report?

Answer 7

only when there are departures from GAAP

Question 8

what is required if an unaudited FS is presented comparatively with a audited FS

Answer 8

status should be indicated and
report on prior period should be reissued or
report on current period should include separate explantory paragraph

Question 9

what is the objective of an interim review of a public entity?

Answer 9

is to provide the accountant with a basis for reporting whether material modifications should be made to conform with GAAP

Question 10

What are the principals of AICPA Code of professional conduct

Answer 10

responsibilities
public interest
integrity
objectivity and independence
due care
scope and nature of services

Question 11

what serivces require objectivitty and integrity

Answer 11

all serivces rendered

Question 12

what services require indpendence

Answer 12

attest services only (audit, special reports, examiation, agree upon procedures, reviews)

Question 13

what rule is required by all types of members

Answer 13

acts discrediblte rule

Question 14

what are the four general standrads rule

Answer 14

professional competence
due professional care
planning and supervision
sufficient relevant data

Question 15

what are the exceptions for wen a memebr can give confidental information without client consent

Answer 15

1 - court subpoena or summons (dont have to mention to client)
2 - peer quality review (AICPA)
3 - response to inquiries from ethics /trial AIPCA or state disciplinary boards
4 - if client is suing us, can use for legal defense

Question 16

when are contingent fees allowed

Answer 16

1 - it is fixed by courts or other public authorities or in tax matters
2 - for complications of FS expected to be used by third party only if hte member includes statement that of lack of independence

Question 17

conceptual framework threats

Answer 17

adverse interest
advocacy
familiarity
management participation
self interest
self review
undue influence

Question 18

What are the types of loans that do not impair independence

Answer 18

• Automobile loans
• loans of the surrender value under terms of an insurance policy
• borrowing fully collateralized by cash deposits at same financial institution
• CC and cash advances on checking accounts with aggregate unpaid balance of $10k or less

Question 19

how often does the PCAOB inspect public acct firms less than 100 audits

Answer 19

every three years

Question 20

how oftend does PCAOB inspect public acct firms more than 100 audits

Answer 20

every year

Question 21

What does the PCAOB consist of

Answer 21

two CPAs
three non CPAs

Question 22

What are the GAO ethical principals

Answer 22

serving public interest
integrity
objectivity
proper use of gov’t info, resources, and positions
professional behavior

Question 23

what are the GAO General standards

Answer 23

independence
professional judgement
competence
quality control and assurance

Question 24

what are the GAGAS conceptual framework threats

Answer 24

self interest
self review
bias
familiarity
undue
management participation
STRUCTURAL (different from AICPA)

Question 25

What issued the GAGAS

Answer 25

GAO (gov’t Accountability office)