Module A: Other Public Accounting Services

Question 1

agreed-upon procedures

Answer 1

The methods used in an engagement in which users participate in determining the scope of procedures performed by the accountants.

Question 2

appropriate financial reporting framework

Answer 2

The financial reporting treatment (i.e., GAAP, IFRS, etc.) adopted by management and, when appropriate, those charged with governance in the preparation of the financial statements that is acceptable in view of the nature of the entity and the objective of the financial statements, or that is required by law or regulation.

Question 3

assurance services

Answer 3

The independent professional functions that improve the quality of information, or its context, for decision makers.

Question 4

attestation

Answer 4

An accounting service resulting in a report on subject matter or an assertion about subject matter that is the responsibility of another party.

Question 5

broker-dealer

Answer 5

An individual or company involved in the business of buying and selling investment securities wither for its own account or on behalf of customers.

Question 6

cash basis framework

Answer 6

A special-purpose framework in which revenues are recognized when cash is received and expenses are incurred when cash is disbursed.

Question 7

compilation

Answer 7

An accounting service in which the practitioner assists in assembling information that is the representation of management but provides no assurance.

Question 8

examination

Answer 8

An attestation engagement similar in nature to an audit.

Question 9

eXtensible Business Reporting Language (XBRL)

Answer 9

The communication terminology required by the Securities and Exchange Commission for companies to use to provide financial statement information that has a computer-readable identifying tag for each item of data.

Question 10

financial forecast

Answer 10

The prospective financial information reflecting an entity’s estimates of what is likely to occur in a future period.

Question 11

financial projection

Answer 11

The prospective financial information reflecting a transaction or event that may occur in the future.

Question 12

interim financial information

Answer 12

The financial information or statements covering a period less than a full year or for a 12-month period ending on a date other than the entity’s fiscal year-end.

Question 13

management’s discussion and analysis (MD&A)

Answer 13

A required section of financial reports of public companies in which management analyzes the results of operations and cash flows for the periods presented.

Question 14

modified cash basis framework

Answer 14

A special-purpose framework that provides limited accruals for items such as fixed assets or inventories and long-term debt.

Question 15

pro forma

Answer 15

The description of financial information reflecting historical data as if a certain transaction had occurred.

Question 16

responsible party

Answer 16

The person or persons, either as individuals or representatives of the entity, responsible for the subject matter of an attestation engagement.

Question 17

review

Answer 17

An engagement in which a practitioner provides limited assurance about financial information.

Question 18

review evidence

Answer 18

The evidence required to provide limited assurance obtained by (1) inquiring of management, (2) conducting analytical procedures, and (3) obtaining written representations from management.

Question 19

service organization

Answer 19

An organization or segment of it that provides services to user entities that are likely to be relevant to user entities’ internal control as it relates to financial reporting.

Question 20

special-purpose framework

Answer 20

A coherent accounting framework in which substantially all important financial measurements are governed by criteria other than GAAP or IFRS.

Question 21

sustainability

Answer 21

The triple-bottom-line of economic viability, social responsibility, and environmental responsibility.

Question 22

SysTrust Services

Answer 22

An assurance function that reviews an entity’s computer system to provide confidence to business partners and customers concerning the security, privacy, and confidentiality of information in addition to system availability and processing integrity.

Question 23

trust services

Answer 23

A set of professional attestation and advisory functions based on a core set of principles and criteria that addresses the risks and opportunities of IT-enabled systems and privacy programs.

Question 24

WebTrust Services

Answer 24

An assurance function designed to reduce the concerns of Internet users regarding the existence of a company and the reliability of key business information placed on its website.