Questions from Auditing and Assurance

Q: What is negative assurance? Why is it used in a review

What is negative assurance? Why is it used in a review engagement report?

Q: Distinguish between compilation and review of financial statements. What is the

Distinguish between compilation and review of financial statements. What is the level of assurance for each?

Q: Distinguish the three forms of compilation reports that a CPA can provide

Distinguish the three forms of compilation reports that a CPA can provide to clients.

Q: List five things that are required of an auditor by SSARS for

List five things that are required of an auditor by SSARS for a compilation.

Q: Explain the relationship between tests of the acquisition and payment cycle and

Explain the relationship between tests of the acquisition and payment cycle and tests of accounts payable. Give specific examples of how these two types of tests affect each other

Q: What steps should auditors take if during a compilation engagement they become

What steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading?

Q: What procedures should the auditor use to obtain the information necessary to

What procedures should the auditor use to obtain the information necessary to give the level of assurance required of reviews of financial statements?

Q: What should auditors do if during a review of financial statements they

What should auditors do if during a review of financial statements they discover that applicable accounting standards are not being followed?

Q: What are the differences between the review reports for a private company

What are the differences between the review reports for a private company under SSARS and for the interim financial statements of a public company?

Q: Explain why a review of interim financial statements for a public company

Explain why a review of interim financial statements for a public company may provide a greater level of assurance than an SSARS review.