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 structure.

(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 management discussion and analysis (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 (SEC).

(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 WebTrust engagement is most likely to include:

(1) An opinion on whether the site is electronically secure.

(2) An opinion on management's assertion that the site meets the WebTrust Criteria.

(3) Negative assurance on whether the site is electronically secure.

(4) No opinion or other assurance, but a summary of findings relating to the Web site.

e. Which of the following is most likely to be provided in a SysTrust report?

(1) Reasonable assurance that the system processing was complete, accurate, timely, and authorized.

(2) Reasonable assurance that the system is continuously updated to conform to SysTrust Principles and Procedures.

(3) A restriction of use to those who participated in developing Systrust Principles and Procedures.
(4) Indication that the examination was conducted in accordance with SysTrust accepted principles.

f. When reporting on the results of an examination of a client's internal control over financial reporting, a CPA should include a paragraph that describes the:
(1) Documentary evidence regarding the control environment factors.
(2) Changes in internal control since the prior report.
(3) Potential benefits from the CPA's suggested improvements.
(4) Inherent limitations of any internal control.