Attest Engagments

Question 1

Attest engagements may result in reports related to?

Answer 1

Compliance, Internal control, Computer systems and software, Information supplemental to financial statements, Prospective information, and Performance, physical characteristics, historical events, and analyses

Question 2

What does trust services relate to?

Answer 2

Information technology

Question 3

Webtrust engagements provide assurance related to?

Answer 3

E-commerce

Question 4

SysTrust engagements provide assurance with respect to?

Answer 4

Reliability of any defined electronic system

Question 5

Statements on Standards for Attestation Engagements provide information addressing the major attestation services?

Answer 5

Agreed-upon procedures, financial forecasts and projections, pro forma financial statements, internal control over financial reporting, compliance, and management’s discussion and analysis

Question 6

What are the attestation standards a framework for?

Answer 6

Attest function beyond historical financial statements

Question 7

Does attestation standards provide levels of assurance below that provided by a GAAS audit?

Answer 7

Yes

Question 8

What are the 5 general standards of the attestation standards?

Answer 8

Training, Independence, Performance, Professional knowledge, and Professional judgment

Question 9

What are the 2 fieldwork standards of attestation standards?

Answer 9

Planning and supervision and Appropriate evidence

Question 10

What are the 4 reporting standards of the attestation standards?

Answer 10

Subject matter, significant reservations, express conclusions about subject matters, and restrict use of the report

Question 11

What type of assurance does an examination give?

Answer 11

Positive assurance

Question 12

What type of assurance does a review give?

Answer 12

Negative assurance

Question 13

Does agreed-upon procedures express assurance?

Answer 13

No

Question 14

What does a failure to provide a written assertion by the client constitute to?

Answer 14

Scope limitation

Question 15

Agreed-upon procedures attestation engagements may be performed provided that the following conditions exist?

Answer 15

Independence, Agreement of the parties, Measurability and consistency, Sufficiency of the procedures, Use of the report is restricted, Responsibility for the subject matter, Engagements to perform agreed-upon procedures on prospective financial statements

Question 16

The practitioner’s report for agreed-upon procedures should contain the following elements?

Answer 16

Statement that the procedures performed were those agreed to by the specified parties identified in the report, and a description of any agreed-upon materiality limits and statement of restrictions on the use of the report because it is intended to be used solely by the specified parties

Question 17

What are the 2 types of prospective financial statements?

Answer 17

Financial forecasts and projections

Question 18

What are financial forecasts based on?

Answer 18

Expected conditions and expected courses of action

Question 19

What type of use can a financial forecast be?

Answer 19

General and limited use

Question 20

What is financial projection based on ?

Answer 20

“what if” type of scenario

Question 21

What type of use can a financial projection be?

Answer 21

Limited use only

Question 22

How is a practitioner associated with prospective financial statements?

Answer 22

Compilation engagement, examination engagement, and agreed-upon procedures engagement

Question 23

What are the items that would appear in the practitioner’s compilation report?

Answer 23

Statement that the practiitioner has compiled the prospective financial statements in accordance with attestation standards established by the AICPA, Statement that a compilation is limited in scope and does not enable the practitioner to express an opinion or any form of assurance on the prospective financial statements or the assumptions, a caveat that the prospective results may not be achieved, and a statement that the practitioner assumes no responsibility to update the report for events and circumstances occurring after the date of the report

Question 24

Content of Report based on Examination of prospective financial statements should include?

Answer 24

Statement that the examination was conducted in accordance with attestation standards established by the AICPA, Opinion that the prospective financial statements are presented in conformity with AICPA guidelines and that the underlying assumptions provide a reasonable basis for the forecast or the projection, and for a projection the report should also include a description of the projection’s purpose and a restrictive use paragraph

Question 25

Should an agreed-upon procedures report on prospective financial statements present a disclaimer on whether the statements are presented in conformity with AICPA guidelines and on whether the underlying assumptions provide a reasonable basis for the statements?

Answer 25

Yes

Question 26

Can partial presentations be presented for general use?

Answer 26

No

Question 27

What services can be done to pro forma financial statements?

Answer 27

Examined or reviewed

Question 28

What attest functions can be used for Management’s Discussion and Analysis?

Answer 28

Examined or reviewed

Question 29

Who are the requirements for MD&A established by?

Answer 29

SEC