Ch. 23 - Other Engagements

Question 1

An audit provides what level of assurance

Answer 1

reasonable assurance, or positive assurance

Question 2

A review provides what level of assurance

Answer 2

limited assurance, or negative assurance

Question 3

Special Purpose FS - Special purpose frameworks:

1. means
2. examples

Answer 3

1. not GAAP
2. examples
   a) cash basis accounting
   b) tax basis accounting
   c) in accordance with terms of a contract

Question 4

Special Purpose FS - Planning considerations - obtain an understanding of:

Answer 4

1. the purpose of the FS
2. the intended users
3. mgmt’s decision to use the framework

Question 5

Special Purpose FS - Emphasis of Matter Paragraph used to:

Answer 5

inform users that the FS are prepared in accordance with a special purpose framework

Question 6

Special Purpose FS - use?

Answer 6

used to be provided to a particular user

Question 7

Special Purpose FS - CAS # / CSRE #

Answer 7

800 / 2400

Question 8

Specific Balances / Elements - CAS # / CSRE #

Answer 8

805 / 2400

Question 9

Specific Balances / Elements - planning considerations

Answer 9

1. is it practical to audit/review the singe balance

2. consider other accounts that would impact the one under audit/review

Question 10

Specific Balances / Elements - Reporting considerations

Answer 10

If an adverse or denial of opinion was offered on FS as a whole, the opinion on the one balance cannot be unmodified

Question 11

Compliance with Agreements / Statutes / Regulations - Attestation Engagements to Report on Compliance - CSAE #

Answer 11

3530

Question 12

Compliance with Agreements / Statutes / Regulations - Direct Engagements to Report on Compliance / CSAE #

Answer 12

3531

Question 13

Compliance with Agreements / Statutes / Regulations - What is an Attestation Engagements:

Answer 13

form an opinion of whether mgmts assessment of compliance is fairly stated

Question 14

Compliance with Agreements / Statutes / Regulations - What is a Direct Engagement:

Answer 14

form an opinion on whether or not the entity has complied with the agreement

Question 15

Compliance with Agreements / Statutes / Regulations - planning considerations

Answer 15

is the information within the practitioners expertise

Question 16

Reporting on controls at a service organization - CSAE #

Answer 16

3416

Question 17

Reporting on controls at a service organization - Purpose

Answer 17

To audit organizations that provide services to others (eg. payroll)

Question 18

Reporting on controls at a service organization - Reporting considerations: types

Answer 18

1. Type 1: attests to design and implementation of controls at a point in time
2. Type 2: attests to design and implementation of controls over a period

Question 19

Engagements to report on Summary Financial Statements - CAS #

Answer 19

810

Question 20

Engagement to report on Summary Financial Statements - acceptance rule:

Answer 20

should only accept if they performed the audit on the complete FS

Question 21

Comprehensive audits - Use:

Answer 21

to determine whether an entity is using its resources economically, efficiently and effectively