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
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 .
- Fall '13
- Accountant, Initialisms