Chapter 2 Set 3 Flashcards
An accountant’s compilation report on a financial forecast should include a statement that?
There will usually be differences between the forecasted and actual results.
Attestation standards provide what?
a framework for the attest function beyond historical financial statements.
Does a compilation of prospective financial statements provide assurance?
No, it is not intended to provide assurance on the prospective financial statements or the assumptions underlying such statements
An accountant’s compilation report on a financial forecast should include a statement that the?
An accountant’s compilation report on a financial forecast should include a statement that the compilation does not include evaluation of the support of the assumptions underlying the forecast. (An examination of the financial forecast would include evaluation of the support).
When an accountant examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions in the accountant’s report and issue a (an)?
Adverse opinion.
What is an attest engagement?
Attest engagements include those in which a practitioner is engaged to issue or does 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, as well as engagements related to prospective financial statements.
Whenever an accountant reports on prospective financial statements, the report should include?
a caveat (warning) that prospective results may not be achieved.
What is a professional engagement that a CPA may perform to provide assurance on a system’s reliability?
a SysTrust engagement is an attest engagement that provides assurance on the reliability of any defined electronic system.
