Types of Engagements and Criteria in Attestation Questions

Unit 10 Assignment 1 AuditingQuestion 20-25
The attestation standards provide guidance for three basic types of engagement.
• Described these three types of engagements.
• Described the types of procedures performed fro each of these types of
engagements.
• Discuss the degree of assurance provided by each types of engagement.
• Identify when each of the three types of engagements results in reports that
are appropriate for general use.
Question 20-28
The third general attestation standards indicates that the subject matter of the
engagement must be capable of reasonably consistent evaluation against criteria
that are suitable and available to the user.
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•
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Explain why criteria are needed for an attestation engagement
Described what makes a particular set of criteria suitable fro an attestation
engagement
Explain how criteria are made available to users of the information
Question 20-29
Multiple Choice
Select the best answer for each of the following and explain fully the reason for your
selection.
a. A report on an attestation engagement should:
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•
•
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•
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State the nature of the client’s control system.
State the practitioner’s conclusion about the subject matter or
assertion.
Include a reasonable limitations section pertaining to data inputs
Refer to the auditor’s assertion concerning the subject matter.
b. When accountant examines a financial forcast that fails to disclose several
significant assumptions used to prepare the forecast, the accountant
should described the assumptions.
Qualified opinion
Unqualified opinion with a separate explanatory paragraph.
Disclaimer of opinion
Adverse opinion
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•
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c. Which of the following is not an objective of CPA’s examination of a
client’s MD &A?
The presentation includes, in all materials respects, the required elements of
the rules and regulations adopted by the Securities and Exchange
Commissions.
The presentation is in conformity with rules and regulations adopted by the
SEC.
The historical amounts included in the presentation have been accurately
derived, in all materials respects, from the entity’s financial statements.
The underlying information, determinations, estimates and assumptions
provide a reasonable basis for the disclosures contained in the presentation.
d. A CPA’s report relating to a SysTrust engagement is most likely to
include:
An opinion on whether the system is electronically secure.
An opinion on management’s assertion that the sytem meets one or more of
the Systrust principles.
Negative assurance on whether the system is secure.
No opinion or other assurance, but a summary of findings relating to the
system.
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e. When performing an examination, if a CPA finds one or more significant
assumptions are not reasonable for a forecast, the most appropriate
report is;
Adverse
Disclaimer
Qualified
Unqualified with emphasis of matter paragraph.
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f. The accounting profession is currently developing assurance services
related to which of the following international information formats?
C++
Webmat
Object language
XBRL
g. CPA services performed under PrimePlus/ElderCare services may be:
Financial
• Yes
• Yes
• No
• No
Nonfinancial
Yes
No
Yes
No
h. when reporting on a company’s compliance with a law, the CPA’s may
report on:
Compliance with
the law itself
•
•
•
•
Yes
Yes
No
No
i.
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Effective of internal
Control over Compliance
Yes
No
Yes
No
Benchmarks that are objective and permit reasonably consist
measurement in an engagement performed under Statements on
Standards for Attestation Services are referred to as:
Written assertions
Suitable criteria
Subject matter
Generally accepted auditing standards.
j.
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Which of the following is least likely to be subject matter of an attestion
engagement?
Behavior
Historical events
Suitable criteria
System or processes
k. A restricted-use report on controls at a sevice organization related to
security, availability, processing integrity, confidentially, and privacy
within e- commerce and other system are reffered to as:
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PrimePlus Services
XBRL Services
Risk Advisory Services
Trust Services
Question 20-31
Indicate whether a CPA may provide each of the following services, and wether
independence is required, by placing a check in the appropriate box.
Service
May provide;
Independence
Is Required
a. Compile a forecast
for the coming
year.
b.Perform a review of a
forcast the company has
prepared for the coming
year.
c. Perform an examination
of Management’s Disccusion
and Analysis when they
have not audited the year’s
financial statements.
d. Issue a Systrust examination
report on the security
against unauthorized access
of s service organization’s
electronic processing
system.
e. Assist an elderly client with
his estate planning.
May Provide;
Independence
Is Not Required
May
Not
Provide