Chap021 - Chapter 21 - Assurance, Attestation, and Internal...

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Unformatted text preview: Chapter 21 - Assurance, Attestation, and Internal Auditing Services Chapter 21 Assurance, Attestation, and Internal Auditing Services True / False Questions 1. Assurance services are independent professional services that improve the quality of information specifically for internal decision makers. True False 2. Electronic commerce is an example of a category of assurance services. True False 3. An attest service occurs when a practitioner is engaged to issue a report on subject matter that is the responsibility of another party. True False 4. Examples of attest engagements include examination, review, and agreed-upon procedures engagements. True False 5. Limited assurance is provided in a review engagement. True False 6. Independence is one of the general standards for attestation engagements. True False 7. The two standards of fieldwork for attestation engagements do not include the requirement that the CPA gain an understanding of internal control. True False 21-1 Chapter 21 - Assurance, Attestation, and Internal Auditing Services 8. Management and the external auditor are responsible for the effectiveness of the entity's internal control. True False 9. A practitioner is allowed to perform either of two types of attestation engagements for reporting on internal control: (1) examination or (2) review. True False 10. Attestation standards provide guidance for performing assurance services with respect to several types of engagements, including prospective financial statements. True False Multiple Choice Questions 11. The public has turned to CPAs to provide assurance services primarily because A. The independence and objectivity of CPAs increase the public trust B. There is a need to develop new revenue streams for accounting firms C. Audits do not provide reliable information for decision makers D. CPAs have been proactive in identifying new types of assurance services to market to customers 12. Which of the following is the authoritative body designated to promulgate attestation standards for nonpublic entities? A. AICPA (Auditing Standards Board) B. Governmental Accounting Standards Board C. Financial Accounting Standards Board D. General Accounting Office 21-2 Chapter 21 - Assurance, Attestation, and Internal Auditing Services 13. In performing an attestation engagement, a CPA typically A. Supplies litigation support services B. Assesses control risk at a low level C. Expresses a conclusion about an assertion D. Provides management consulting advice 14. Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards? A. The attestation standards provide a framework for the attest function beyond historical financial statements B. The requirement that the practitioner be independent in mental attitude is omitted from the attestation standards C. The attestation standards do not permit an attest engagement to be part of a business acquisition study or a feasibility study...
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This note was uploaded on 10/16/2011 for the course ACCT 6334 taught by Professor Chrits during the Spring '11 term at University of Texas at Austin.

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Chap021 - Chapter 21 - Assurance, Attestation, and Internal...

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