Other Public Acct Services Flashcards
An attestation engagement that is similar in substance to an audit, but may be limited in terms of focus is called a(n)
examination
Assisting in the preparation of financial information without providing any assurance or accuracy on the completeness of the information is the purpose of a(n) (Blank) engagement.
compilation
A service performed by accountants to obtain limited assurance that no material modifications should be made to the financial statements in order for them to be in conformity with the applicable reporting framework is a(n)
review
In connection with examination engagements for compliance, accountants are required to consider these three types of risk:
inherent, control, detection
Assembling a set of financial statements from account information supplied by the entity’s management without providing any assurance on the accuracy or completeness of the information is a(n)
compilation
To define a set of professional attestation and advisory services based on a core set of principles and criteria that addresses the risk and opportunities of IT-enables systems and privacy programs, the AICPA has adopted the term
trust services
A report that documents a service organization’s controls and documents their suitability
SOC type 1 report
A report that documents a service organization’s controls and documents their suitability and operating effectiveness
SOC type 2 report
(Blank blank) perform data processing/computer/IT services, like payroll processing, for various clients
service organization
Auditors selected by a service organization to assess systems are called (blank) auditors
service
A review of unaudited financial statements consists of:
Conducting inquiry of management, performing analytical procedures, and obtaining written representations.
Prospective financial information based on expected conditions and course of action is a financial (blank)
forecast
Prospective financial information based on the occurrence of one or more hypothetical events that may change the entity’s business structure is a financial (blank)
projection
Obtaining review evidence does/does not require analytical procedures.
does
“Independent professional services that improve the quality of information, or its context, for decision makers” is the definition of (blank) services
assurance
Three types of attestation engagements:
examination, review, agreed-upon procedures
A preparation of financial statement engagement should/should not include an engagement letter, requires/does not require limited procedures
should, does not require
Smaller, non-issuers may choose to report financials using (blank blank), an accounting treatment governed by criteria other than GAAP
special-purpose frameworks, aka OCBOA, other comprehensive bases of accounting
Regulatory agency, tax basis, cash basis, and modified cash basis accounting are all examples of
special-purpose frameworks
A(n) (blank) provides an opinion on financial information and assumptions, while a(n) (blank) provides a list of findings
examination, agreed-upon procedures
A forecast can be used by a general/limited audience, while a projection can be used by a general/limited audience
general, limited
SEC Rule 17a-5 requires broker-dealers compliance reports including assertions about four components:
- internal control compliance was effective during the most recent fiscal year
- internal control compliance was effective at year end
- compliance w/ net capital requirements and reserve requirements at year end
- net capital and reserve requirements were derived from the broker-dealer’s accounting records
a broker-dealer exemption report is subject to PCAOB (blank) engagement
review
Standards that apply to accountants’ engagement on unaudited non-issuer F/S
Statements on Standards for Accounting and Review Services (SSARS)
collection of services for non-issuers that provide a lower level of assurance than an audit about F/S
accounting and review engagements
Obtaining knowledge of the entity’s business/industry, making mgmt inquiries, conducting analytical procedures, reconciling F/S to underlying records, and obtaining mgmt written representations are the procedures for a (blank)
review
Financial preparation engagements include:
- F/S prior to audit or review by another accountant
- F/S presented w/ tax return
- Personal F/S for financial plan
- Individual F/S w/o disclosures
- F/S from GL outside of acct software system
Compilation procedures require
auditor to read F/S for obvious errors
Independence is not required for which types of audit engagements
compilation, preparation (no opinion issued)
AICPA SSARS governs which 3 types of auditor engagements
Review, compilation, preparation
AICPA SSAE governs which type of auditor engagement
agreed-upon procedures
