Multiple Choice Questions Select the best answer for each of
Multiple Choice Questions
Select the best answer for each of the following and explain fully the reason for your selection.
a. A report on an attestation engagement should:
(1) State the nature of the client’s control system.
(2) State the practitioner’s conclusion about the subject matter or assertion.
(3) Include a reasonable limitations section pertaining to data inputs.
(4) Refer to the auditor’s assertion concerning the subject matter.

b. When an accountant examines a financial forecast that fails to disclose several significant assumptions used to prepare the forecast, the accountant should describe the assumptions in the accountant’s report and issue a(n):
(1) Qualified opinion.
(2) Unqualified opinion with a separate explanatory paragraph.
(3) Disclaimer of opinion.
(4) Adverse opinion.

c. Which of the following is not an objective of a CPA’s examination of a client’s MD&A?
(1) The presentation includes, in all material respects, the required elements of the rules and regulations adopted by the Securities and Exchange Commission.
(2) The presentation is in conformity with rules and regulations adopted by the SEC.
(3) The historical amounts included in the presentation have been accurately derived, in all material respects, from the entity’s financial statements.
(4) The underlying information, determinations, estimates, and assumptions provide a reasonable basis for the disclosures contained in the presentation.

d. A CPA’s report relating to a SysTrust engagement is most likely to include:
(1) An opinion on whether the system is electronically secure.
(2) An opinion on management’s assertion that the system meets one or more of the SysTrust principles.
(3) Negative assurance on whether the system is secure.
(4) No opinion or other assurance, but a summary of findings relating to the system.

e. When performing an examination, if a CPA finds one or more significant assumptions are not reasonable for a forecast, the most appropriate report is:
(1) Adverse.
(2) Disclaimer.
(3) Qualified.
(4) Unqualified with emphasis-of-matter paragraph.

f. The accounting profession is currently developing assurance services related to which of the following international information formats?
(1) C++.
(2) Webmat.
(3) Object language.
(4) XBRL.

g. CPA services performed under PrimePlus/ElderCare services may be:

h. When reporting on a company’s compliance with a law, the CPAs may report on:

i. Which is least likely?
(1) An assurance service that is also an attest service.
(2) A service that is not an assurance service, but is an attest service.
(3) A historical financial statement–related assurance service.
(4) A nonhistorical financial information–related assurance service.

j. Which of the following is least likely to be the subject matter of an attestation engagement?
(1) Behavior.
(2) Historical events.
(3) Suitable criteria.
(4) Systems or processes.

k. Which of the following is not a basic type of attestation engagement?
(1) Agreed-upon procedures.
(2) Compilation.
(3) Examination.
(4) Review.

l. The assurance services being developed that address user and preparer needs regarding issues of security, availability, processing integrity, confidentiality, and privacy within e-commerce and other systems are referred to as:
(1) PrimePlus Services.
(2) XBRL Services.
(3) Risk Advisory Services.
(4) TrustServices.
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