1.3 Overview of Attestation Engagements 7. An attestation engagement is one in which a CPA is...

 

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1.3 Overview of Attestation Engagements 7. An attestation engagement is one in which a CPA is engaged to A. Issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party. B. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed. C. Testify as an expert witness in accounting. auditing, or tax matters, given certain stipulated facts. D. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance. 8. Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards? A. The attestation standards provide a framework for the attest function beyond historical financial statements. B. The requirement that the practitioner be independent in mental attitude is omitted from the attestation standards. C. The attestation standards do not permit an attest engagement to be part of a business acquisition study or a feasibility study. D. The requirement to obtain a management representation letter in an audit is omitted from the attestation standards. 9. In performing an attest engagement, a CPA typically A. Supplies litigation support services. B. Assesses the risks of material misstatement of financial information. C. Reports on subject matter other than traditional financial statements. D. Provides management consulting advice. 1.4 Additional Professional Services 10. Assurance and advisory services are best described as ABCD 11. The objective of assurance services is to A. Provide more timely information. B. Enhance decision making A. A. Services designed for the improvement of operations, resulting in better outcomes B. Independent professional services that improve the quality of information, or its context, for decision makers. C. Compare internal information and policies to those of other firms. D. Improve the firm's outcomes. C. The assembly of financial statements based on information and assumptions of a responsible party. 12. Assurance services differ from consulting services in that assurance services C. D. D. Services designed to express an opinion on historical financial statements based on the results of an audit. Focus on Providing Advice Yes Yes No No Involve Monitoring of One Party by Another Yes No Yes No 1.3 Overview of Attestation Engagements 7. An attestation engagement is one in which a CPA is engaged to A. Issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party. B. Provide tax advice or prepare a tax return based on financial information the CPA has not audited or reviewed. C. Testify as an expert witness in accounting. auditing, or tax matters, given certain stipulated facts. D. Assemble prospective financial statements based on the assumptions of the entity's management without expressing any assurance. 8. Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards? A. The attestation standards provide a framework for the attest function beyond historical financial statements. B. The requirement that the practitioner be independent in mental attitude is omitted from the attestation standards. C. The attestation standards do not permit an attest engagement to be part of a business acquisition study or a feasibility study. D. The requirement to obtain a management representation letter in an audit is omitted from the attestation standards. 9. In performing an attest engagement, a CPA typically A. Supplies litigation support services. B. Assesses the risks of material misstatement of financial information. C. Reports on subject matter other than traditional financial statements. D. Provides management consulting advice. 1.4 Additional Professional Services 10. Assurance and advisory services are best described as ABCD 11. The objective of assurance services is to A. Provide more timely information. B. Enhance decision making A. A. Services designed for the improvement of operations, resulting in better outcomes B. Independent professional services that improve the quality of information, or its context, for decision makers. C. Compare internal information and policies to those of other firms. D. Improve the firm's outcomes. C. The assembly of financial statements based on information and assumptions of a responsible party. 12. Assurance services differ from consulting services in that assurance services C. D. D. Services designed to express an opinion on historical financial statements based on the results of an audit. Focus on Providing Advice Yes Yes No No Involve Monitoring of One Party by Another Yes No Yes No

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