Mod 6 Wrong Answers Flashcards
The Statements on Standards for Accounting and Review services apply when a CPA…
Submits unaudited financial statements of a nonissuer entity to
Their client or to others
When reproducing client prepared financial statements, without modification, as an accommodation to a client, an accountant is…
Not required to comply with the provisions of SSARS
SSARS do not apply when accountant has…
Typed client prepared financial statements, without modification,
As an accommodation to the client
SSARS apply when an account has generated, through the use of computer software…
Financial statements prepared in accordance with a comprehensive
Basis of accounting other than GAAP
To compile financial statements the accountant should…5
1 possess general understanding of nature of entity’s business
Transactions
2 the form of its accounted records
3 stated qualifications of accounting personnel
4 accounting basis on which financial statements are presented
5 form an content of financial statements
Risk factors relating to misstatements arising from illegal acts is…
Not a consideration in a compilation
A CPA’s reporting responsibility when current year financial statements are compiled while the preceding year’s financial statements were audited. A separate paragraph in the report should indicate that:
The financial statements of…
The prior year were audited
A CPA’s reporting responsibility when current year financial statements are compiled while the preceding year’s financial statements were audited. A separate paragraph in the report should indicate:
The date of…
The previous report
A CPA’s reporting responsibility when current year financial statements are compiled while the preceding year’s financial statements were audited. A separate paragraph in the report should indicate:
The type of…
Opinion expressed
A CPA’s reporting responsibility when current year financial statements are compiled while the preceding year’s financial statements were audited. A separate paragraph in the report should indicate:
If the opinion was…
Other than unmodified, the substantive reasons therefor
A CPA’s reporting responsibility when current year financial statements are compiled while the preceding year’s financial statements were audited. A separate paragraph in the report should indicate:
That no…
Auditing procedures were performed after the date of the previous
Report
when current year financial statements are compiled while the preceding year’s financial statements were audited. A CPA does not…
Indicate reasons for changing from an audit to a compilation
What is the CPA’s reporting responsibility when an audit engagement for a nonissuer has been changed to a review engagement because of what the CPA believes to be a reasonable restricting on the scope of the audit?
The CPA should neither include reference to the original
engagement nor to the scope limitation
