Other Professional Services

Question 1

List the three usual types of attestation engagements. (This “menu” may change depending upon the specific subject matter involved.)

Answer 1

1-Examinations
2-Reviews
3-Agreed-Upon Procedures

Question 2

What is the only type of prospective financial statement for which an examination report can have general unrestricted distribution?

Answer 2

A forecast can have unrestricted distribution (but any report on a projection must have restricted distribution).

Question 3

List the two types of engagements related to pro forma information.

Answer 3

1-Examination

2-Review.

Question 4

List the two types of engagements associated with an entity’s Management Discussion & Analysis (MD&A) presentation that are addressed by the American Institute of Certified Public Accountants (AICPA) attestation standards.

Answer 4

1-Examination - resulting in positive assurance; or

2-Review - resulting in negative assurance.

Question 5

What preconditions must exist for an auditor to accept an engagement to report on an entity’s Management Discussion & Analysis (MD&A) presentation?

Answer 5

1-Practitioner must have audited the annual financial statements for the latest period covered by the MD&A presentation; and
2-Any other financial statements involved must have been audited, or at least reviewed if they are interim financial statements, by the practitioner or a predecessor auditor.

Question 6

When auditing an entity’s financial statements in accordance with Government Auditing Standards (the Yellow Book), an auditor is required to report on

Answer 6

The scope of the auditor’s testing of internal controls.

Question 7

Which requirement is one with which the auditor is required to comply or to provide an explanation for not doing so

Answer 7

Presumptively mandatory requirement