Questions from Auditing and Assurance

Q: What procedures are required when a CPA performs a compilation of financial

What procedures are required when a CPA performs a compilation of financial statements?

Q: Can the CPAs report on a nonpublic client’s financial statements that omit

Can the CPAs report on a nonpublic client’s financial statements that omit substantially all disclosures required by generally accepted accounting principles? Explain.

Q: Evaluate this statement: “Auditors perform attestation services and accountants perform

Evaluate this statement: “Auditors perform attestation services and accountants perform accounting services.”

Q: What should the accountants do if they discover that the financial statements

What should the accountants do if they discover that the financial statements they are compiling contain a material departure from generally accepted accounting principles?

Q: When a CPA has prepared a client’s financial statements how is the

When a CPA has prepared a client’s financial statements how is the fact that no assurance is provided indicated?

Q: Assume that a public accounting firm is reviewing the financial statements of

Assume that a public accounting firm is reviewing the financial statements of a nonpublic company and discovers that the firm is not independent. What options are available to the firm?

Q: Explain how, in using the mean-per-unit method

Explain how, in using the mean-per-unit method to evaluate results, the auditors use the differences between the audited values and the book values of the individual items in their sample.

Q: In communications with clients, should CPAs refer to themselves as auditors

In communications with clients, should CPAs refer to themselves as auditors or as accountants? Explain.

Q: Can auditors express an unmodified opinion on financial statements that are not

Can auditors express an unmodified opinion on financial statements that are not presented on the basis of generally accepted accounting principles? Explain.

Q: Provide four types of special-purpose financial reporting frameworks.

Provide four types of special-purpose financial reporting frameworks.