PSA 120

Question 1

Comparative level of assurance provided by the auditor in agreed-upon procedures

Answer 1

No assurance

Question 2

In Review Engagements, the report provided is

Answer 2

Negative assurance on assertions

Question 3

It is the auditor’s satisfaction as to the reliability of an assertion being made by one party to another party

Answer 3

Assurance

Question 4

The users of the report assess for themselves the procedures and findings reported by the auditor and draw their own conclusions from the auditor’s work

Answer 4

Agreed-upon procedures

Question 5

What best described review?

Answer 5

It does not ordinarily involve an assessment of accounting and internal control systems, tests of records and of responses to inquiries by obtaining corroborating evidence through inspection, observation, confirmation and computation

Question 6

This ordinarily entails reducing detailed data to a manageable and understandable form

Answer 6

Compilation engagement

Question 7

If the auditor is not associated with the company,

Answer 7

3rd parties can assume no responsibility of the auditor

Question 8

If the auditor learns that the entity uses his name in association with financial information,

Answer 8

-require management to cease doing so and,
-informing 3rd parties of the inappropriatness
-seek legal advice

Question 9

In an engagement to perform agreed-upon procedures,

Answer 9

The report is restricted to those parties that have agreed to the procedures to be performed since others, unaware of the reasons for the procedures, may misinterpret the results

Question 10

Does the users of the compiled information derive benefits from the accountants?

Answer 10

Yes