MULTIPLE-CHOICE QUESTIONS
1. Refer to Exhibit, which provides an overview of reporting requirements for special-purpose financial statements. In which of the following situations would the practitioner include an emphasis-of-matter paragraph alerting readers about the preparation in accordance with a special-purpose framework?
a. When a cash basis is used.
b. When a tax basis is used.
c. When a regulatory basis (for use by management and the regulator only) is used.
d. When a contractual basis is used.
e. All of the above.

2. Refer to Exhibit, which provides examples of appropriate and inappropriate descriptions of findings of agreed-upon procedures. Assume that the practitioner is engaged to perform an agreed-upon procedures engagement. The procedure agreed upon was for the practitioner to calculate the number of blocks or streets paved during the year ended September 30, 20XX, shown on contractors' certificates of project completion; compare the resultant number to the number in an identified chart of performance statistics. Which of the following would be an appropriate way to describe the results of agreed-upon procedures?
a. Nothing came to my attention that would indicate that the number is inconsistent with the chart of performance statistics.
b. The number of blocks of streets paved approximated the number of blocks included in the chart of performance statistics.
c. The number of blocks of streets paved in the chart of performance statistics was Y blocks more than the number calculated from the contractors' certificates of project completion.
d. All of the above.

3. A compilation of prospective financial statements includes which of the following steps?
a. Assembling prospective financial statements based on the responsible party's assumptions.
b. Performing compilation procedures, including reading the prospective financial statements, along with their assumptions and accounting policies, and considering whether they appear to be presented in conformity with AICPA presentation guidelines and that they are not obviously inappropriate.
c. Issuing a compilation report.
d. All of the above.

4. Which of the following statements about forensic accounting is false?
a. Forensic accountants will examine, only on a sample basis, material transactions believed to relate to the fraud.
b. Forensic accounting builds support for legal action against the person committing the fraud by identifying the fraud, calculating the damages caused by the fraud, and building both factual and testimonial evidence of the fraud.
c. The primary purpose of forensic engagements is to detect, investigate, and document a situation in which fraud almost certainly exists.
d. Forensic accountants are often asked to provide litigation support, in which they are called on to give expert testimony about financial data and accounting activities.

5. Forensic accounting differs from auditing on which of the following dimensions?
a. Focus.
b. Approach.
c. Scope.
d. End product.
e. All of the above.

6. The G3 Framework Principles emphasize which of the following?
a. Sustainability report content, including materiality, stakeholder inclusiveness, sustainability context, and completeness.
b. Sustainability report quality, including balance, comparability, accuracy, timeliness, reliability, and clarity.
c. Sustainability report boundaries, including careful consideration of the range of entities that should be included in the report.
d. All of the above.

7. Which of the following statements relating to sustainability reporting is false?
a. Sustainability reports are very similar and contain virtually identical information across entities because of the high level of regulation governing such disclosures.
b. Sustainability reporting involves voluntary corporate disclosures about sustainability initiatives, plans, and associated outcomes.
c. Investor interest, socially responsible investment funds, and the Dow Jones Sustainability Index have each created demand for sustainability reporting.
d. The terms nonfinancial reporting, corporate social responsibility reporting, triple bottom-line reporting, and sustainability reporting are often used to describe essentially the same activities.