ACC 409 CH. 17 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
Which of the following is not subject matter that would be attested to in a non-
audit attestation engagement?
a. Historical events such as the price of a market basket of goods on a certain
date.
b. Corporate governance, compliance with law and regulations, or human
resource practices.
c. Management's assertions about historical financial information and associated
disclosures.
d. Prospective financial information, performance measurements, or backlog
data.
c. Management's assertions about historical financial information and associated
disclosures.
Which of the following is not a critical component of attestation services?
a. Information or process (the subject matter) on which the assurance service is
provided.
b. Criteria for evaluation, such as compliance with regulations.
c. Sufficient appropriate evidence.
,d. Two parties involved, the practitioner (or the CPA) and the intended users of
the report.
d. Two parties involved, the practitioner (or the CPA) and the intended users of the
report.
What are the two levels of assurance that can be provided in an attestation
engagement?
a. Risk assurance and reduction assurance.
b. Professional assurance and compliance assurance.
c. Sufficient assurance and appropriate assurance.
d. Reasonable assurance and limited assurance.
d. Reasonable assurance and limited assurance.
What are the two topics that attestation standards provide guidance on?
a. They provide a plan for the engagement and criteria about who can participate
in the engagement.
b. They provide guidance about gathering evidence regarding specific assertions
and communicate an opinion on the fairness of the presentation to a third party.
c. They provide sufficient assurance on subject matter and appropriate assurance
about reporting.
d. They provide guidance on reviewing evidence and compiling evidence.
b. They provide guidance about gathering evidence regarding specific assertions and
communicate an opinion on the fairness of the presentation to a third party.
,Which of the following is not an AICPA standard of reporting for attestation
engagements?
a. The practitioner must identify the subject matter or the assertion being
reported on and state the character of the engagement in the report.
b. The practitioner must state the practitioner's conclusion about the subject
matter or the assertion in relation to the criteria against which the subject matter
was evaluated in the report.
c. The practitioner must obtain sufficient evidence to provide a reasonable basis
for the conclusions that is expressed in the report.
d. The practitioner must state all of the practitioner's significant reservations
about the engagement, the subject matter, and if applicable, the assertion related
thereto in the report.
d. The practitioner must state all of the practitioner's significant reservations about the
engagement, the subject matter, and if applicable, the assertion related thereto in the
report.
Which of the following is not an AICPA general standard for attestation
engagements?
a. The practitioner must have adequate technical training and proficiency to
perform the attestation engagement.
b. The practitioner must have reason to believe that the subject matter is capable
of evaluation against criteria that are suitable and available to users.
, c. The practitioner must adequately plan the work and must properly supervise
any assistants.
d. The practitioner must exercise due professional care in the planning and
performance of the engagement and the preparation of the report.
b. The practitioner must have reason to believe that the subject matter is capable of
evaluation against criteria that are suitable and available to users.
Which one of the following statements is false regarding a review?
a. A review involves assessing fraud risk.
b. A review does not involve obtaining an understanding of the entity's internal
control.
c. A review does not involve testing accounting records by obtaining sufficient
appropriate evidence through inspection, observation, confirmation, or
examining source documents.
d. A review does not involve a practitioner obtaining assurance that he or she will
become aware of all significant matters that would be investigated in an audit.
a. A review involves assessing fraud risk.
Which of the following standards represents the standards followed by CPAs
providing a review of a client's financial statements?
a. Statements on Standards for Accounting and Review Services.
b. Statements on Auditing Standards.
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
Which of the following is not subject matter that would be attested to in a non-
audit attestation engagement?
a. Historical events such as the price of a market basket of goods on a certain
date.
b. Corporate governance, compliance with law and regulations, or human
resource practices.
c. Management's assertions about historical financial information and associated
disclosures.
d. Prospective financial information, performance measurements, or backlog
data.
c. Management's assertions about historical financial information and associated
disclosures.
Which of the following is not a critical component of attestation services?
a. Information or process (the subject matter) on which the assurance service is
provided.
b. Criteria for evaluation, such as compliance with regulations.
c. Sufficient appropriate evidence.
,d. Two parties involved, the practitioner (or the CPA) and the intended users of
the report.
d. Two parties involved, the practitioner (or the CPA) and the intended users of the
report.
What are the two levels of assurance that can be provided in an attestation
engagement?
a. Risk assurance and reduction assurance.
b. Professional assurance and compliance assurance.
c. Sufficient assurance and appropriate assurance.
d. Reasonable assurance and limited assurance.
d. Reasonable assurance and limited assurance.
What are the two topics that attestation standards provide guidance on?
a. They provide a plan for the engagement and criteria about who can participate
in the engagement.
b. They provide guidance about gathering evidence regarding specific assertions
and communicate an opinion on the fairness of the presentation to a third party.
c. They provide sufficient assurance on subject matter and appropriate assurance
about reporting.
d. They provide guidance on reviewing evidence and compiling evidence.
b. They provide guidance about gathering evidence regarding specific assertions and
communicate an opinion on the fairness of the presentation to a third party.
,Which of the following is not an AICPA standard of reporting for attestation
engagements?
a. The practitioner must identify the subject matter or the assertion being
reported on and state the character of the engagement in the report.
b. The practitioner must state the practitioner's conclusion about the subject
matter or the assertion in relation to the criteria against which the subject matter
was evaluated in the report.
c. The practitioner must obtain sufficient evidence to provide a reasonable basis
for the conclusions that is expressed in the report.
d. The practitioner must state all of the practitioner's significant reservations
about the engagement, the subject matter, and if applicable, the assertion related
thereto in the report.
d. The practitioner must state all of the practitioner's significant reservations about the
engagement, the subject matter, and if applicable, the assertion related thereto in the
report.
Which of the following is not an AICPA general standard for attestation
engagements?
a. The practitioner must have adequate technical training and proficiency to
perform the attestation engagement.
b. The practitioner must have reason to believe that the subject matter is capable
of evaluation against criteria that are suitable and available to users.
, c. The practitioner must adequately plan the work and must properly supervise
any assistants.
d. The practitioner must exercise due professional care in the planning and
performance of the engagement and the preparation of the report.
b. The practitioner must have reason to believe that the subject matter is capable of
evaluation against criteria that are suitable and available to users.
Which one of the following statements is false regarding a review?
a. A review involves assessing fraud risk.
b. A review does not involve obtaining an understanding of the entity's internal
control.
c. A review does not involve testing accounting records by obtaining sufficient
appropriate evidence through inspection, observation, confirmation, or
examining source documents.
d. A review does not involve a practitioner obtaining assurance that he or she will
become aware of all significant matters that would be investigated in an audit.
a. A review involves assessing fraud risk.
Which of the following standards represents the standards followed by CPAs
providing a review of a client's financial statements?
a. Statements on Standards for Accounting and Review Services.
b. Statements on Auditing Standards.
