tb_21 - CHAPTER 21 Other Service s and Reports QUESTIONS True F al s e REQUIRED:Foreach ofthefollowing items,indicate whether itis(T)True or(F)False.For

tb_21 - CHAPTER 21 Other Service s and Reports QUESTIONS...

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CHAPTER 21:   Other  Services  and  Reports QUESTIONS True/False REQUIRED:   For each of the following  items, indicate whether  it is (T) True or (F) False.  For  those marked  “False,” identify the error(s) and  indicate the change or changes that are needed   to make the statement  true.   1. In general, CPAs can provide  four different levels of assurance associated  with an   engagement.   2. Special reports can be issued  when  the CPA lacks independence.   3. The CPA’s responsibilities in issuing  special reports are currently contained  in the SASs.   4. When an auditor examines a set of financial statements  prepared  on another   comprehensive basis of accounting, all ten GAAS apply, regardless of the method  of  accounting  used.   5. In reports involving  an OCBOA, the  scope paragraph  is the same as in the auditor’s  standard  report.   6. When the auditor  has audited  the related  financial statements, a report on a specified   element  that is significant to the statements  cannot  be issued  unless the auditor  issued  an  adverse or disclaimer of opinion  on the statements.   7. The application of  agreed-upon procedures  does not  constitute an audit.   8. Regardless of the type of assurance given, the CPA should  express a disclaimer of  opinion  on the assertions in reporting  on the application of agreed-upon  procedures.   9. An SAS 71 review  service is substantially less in scope than  an audit. 10. The attestation  standards  supersede  generally accepted  auditing  standards. 11. In an attestation  engagement, the CPA must  meet the attestation  standards  and  any   other authoritative standards  that are applicable. 12. The  standards on accounting and review  services  extend  the attest function  beyond   historical financial statements. 13. The third  general attestation  standard  requires the assertion to be subject to precise   measurement. 14. The attestation  standards  make no reference to internal controls because they never   apply to attestation  engagements. 15. In an attestation  report,  positive assurance  results in a report that states that nothing   came to the CPA’s attention  that led the CPA to believe that the assertions by   management  governed  by professional standards  would  be misleading. 1
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16. The statement  on Standards  for Accountant’s Services on Prospective Financial   Information  is an interpretation  of the AICPA’s Guide  for Prospective Financial   Statements .
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