Questions from Auditing and Assurance

Q: Which of the following is a provision of the Foreign Corrupt Practices

Which of the following is a provision of the Foreign Corrupt Practices Act? a. It is a criminal offense for an auditor to fail to detect and report a bribe paid by an American business entity to a for...

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

An assurance report on information can provide assurance about the information’s a. Reliability. b. Relevance. c. Timeliness. d. All of the above.

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

Which of the following professional services would be considered an attest engagement? a. A management consulting engagement to provide IT advice to a client. b. An engagement to report on compliance...

Q: An accountant may accept an engagement to apply agreed-upon procedures

An accountant may accept an engagement to apply agreed-upon procedures to prospective financial statements, provided that a. The prospective financial statements are also examined. b. Responsibility f...

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

Which of the following statements concerning prospective financial statements is correct? a. Only a financial forecast would normally be appropriate for limited use. b. Only a financial projection wou...

Q: When compiling the financial statements of a non-public entity,

When compiling the financial statements of a non-public entity, an accountant should a. Review agreements with financial institutions for restrictions on cash balances. b. Understand the accounting pr...

Q: Which of the following statements is correct concerning both an engagement to

Which of the following statements is correct concerning both an engagement to compile and an engagement to review a non-public entity’s financial statements? a. The accountant is not required to obtai...

Q: Taylor, CPA, has been engaged to audit the financial statements

Taylor, CPA, has been engaged to audit the financial statements of Palmer Company, a continuing audit client. Taylor is about to perform substantive audit procedures on Palmer’s goodwill (excess of co...

Q: The standard report issued by an accountant after reviewing financial statements states

The standard report issued by an accountant after reviewing financial statements states that a. A review includes assessing the accounting principles used and significant estimates made by management....

Q: Financial statements that have been reviewed by an accountant should be accompanied

Financial statements that have been reviewed by an accountant should be accompanied by a report stating that a. The scope of the inquiry and the analytical procedures performed by the accountant have...