Test%20Questions%20Chapter%20200

Test%20Questions%20Chapter%20200 - Chapter 20 Additional...

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Chapter 20 Additional Assurance Services: Other Information True/False Questions 1. Assurance services improve the quality of information or its context for decision makers. Answer: True Difficulty: Easy 2. Attestation services are similar, but go beyond assurance services in scope of procedures and reporting. Answer: False Difficulty: Medium 3. Independence is required for the performance of all assurance services. Answer: True Difficulty: Medium 4. Practitioners may report on either an assertion about the subject matter, or on the subject matter for most attestation engagements. Answer: True Difficulty: Medium 5. Attestation risk, like audit risk consists of three components--inherent risk, control risk, and substantiation risk. Answer: False Difficulty: Medium 6. The attestation standards prohibit the examination of prospective financial statements. Answer: False Difficulty: Medium 7. A practitioner may be engaged to perform a review of management's discussion and analysis for an annual or an interim period. Answer: True Difficulty: Medium 8. A WebTrust seal assures consumers that they will be satisfied with their purchases. Answer: False Difficulty: Easy 9. Trust Services are a part of the AICPA's vision that increased trust in annual historical financial statements is necessary. Answer: False Difficulty: Medium 54 Whittington, Principles of Auditing, Fifteenth Edition
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Chapter 20 Additional Assurance Services: Other Information 10. SysTrust engagements relate only to database systems. Answer: False Difficulty: Medium Multiple Choice Questions 11. Which of the following is least likely to be included in an agreed-upon procedures attestation engagement report? A) The specified party takes responsibility for the sufficiency of procedures. B) Use of the report is restricted. C) Limited assurance on the information presented. D) A summary of procedures performed. Answer: C Difficulty: Medium 12. Conditions exist that result in a material deviation from the criteria against which the subject matter was evaluated during an examination performed following the attestation standards. The CPA's conclusion may be on: Subject Matter Written Assertion A) Yes Yes B) Yes No C) No Yes D) No No Answer: B Difficulty: Medium 13. Suitable criteria in an attestation engagement may be available: Publicly In CPA’s Report A) Yes Yes B) yes No C) No Yes D) No No Answer: A Difficulty: Hard 55 Whittington, Principles of Auditing, Fifteenth Edition
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Chapter 20 Additional Assurance Services: Other Information 14. When performing an attestation examination engagement, which of the following is not always required? A) Assertion. B) Practitioner independence. C) Subject matter. D) Suitable criteria. Answer: A
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This note was uploaded on 04/09/2011 for the course ACCT 4773 taught by Professor Pro during the Spring '11 term at Dallas.

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Test%20Questions%20Chapter%20200 - Chapter 20 Additional...

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