Quizizz Lecture Week 11: Assurance & Attest Services

Question 1

Which of the following statements concerning prospective financial statements is correct?

Answer 1

A. Any type of prospective financial statement would normally be appropriate for limited use
B. Only a financial projection would normally be appropriate for general use
C. Only a financial forecast would normally be appropriate for limited use
D. Any type of prospective financial statement would normally be appropriate for general use
Ans: A

Question 2

An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements, provided that:

Answer 2

A. Responsibility for the adequacy of the procedures performed is taken by the accountant
B. Negative assurance is expressed on the prospective financial statements taken as a whole
C. The prospective financial statements are also examined
D. Distribution of the report is restricted to the specified users
Ans: D

Question 3

An assurance report on information can provide assurance about the information’s:

Answer 3

A. Reliability
B. Relevance
C. Timeliness
D. All the above
Ans: D

Question 4

When compiling the financial statements of a non-public entity, an accountant should:

Answer 4

A. Inquire a key personnel concerning related parties and subsequent events
B. Understand the accounting principles and practices of the entity’s industry
C. Perform ratio analysis of the financial data of comparable prior periods
D. Review agreements with financial institutions for restrictions on cash balances
Ans: B

Question 5

Which of the following professional services would be considered an attest engagement?

Answer 5

A. An engagement to report on compliance with statutory requirements
B. An income tax engagement to prepare federal and state tax returns
C. Preparation of financial statements from a client’s accounting records
D. A management consulting engagement to provide IT advice to a client
Ans: A