Chapter $18$ Other Assurance and Attestation Services

Answer each question

$1.$ Assuring the relevance of a company's internal measures is a$($n$)$:

a$.$ Business performance service.

b$.$ Benchmarking service.

c$.$ Risk assessment service.

d$.$ Information systems service.

$2.$ Maintaining controls to provide reasonable assurance that customers' transactions are completed as agreed is the intent of WebTrust:

a$.$ Business practices principle.

b$.$ Transaction integrity principle.

c$.$ Information protection principle.

d$.$ Internal control principle.

$3.$ In a data integrity assurance service, an accountant assures that:

a$.$ Encryption technology is secure$.$

b$.$ Cash is not diverted.

c$.$ The parties to a transaction are authentic.

d$.$ Credit card information is protected.

$4.$ Which of the following is not likely a core competency for assurance services?

a$.$ Business advisory skills.

b$.$ Model building and technology.

c$.$ Relationship management.

d$.$ Enterprise resource skills.

$5.$ Which of the following would not be considered an attest engagement under SSAE No$.10,$ "Attestation Standards: Revision and Recodification'$\text{'}?$

a$.$ A compilation of financial statements

b$.$ A letter for an underwriter

c$.$ A report on the application of an accounting principle

d$.$ A report on financial statements that are prepared on a comprehensive basis of accounting other than GAAP

$6.$ In a review engagement, the independent accountant's procedures include:

a$.$ Examining bank reconciliations.

b$.$ Confirming accounts receivable with debtors.

c$.$ Reading the financial statements to consider whether they appear to conform with GAAP.

d$.$ Obtaining a letter of audit inquiry from all attorneys of record.

$7.$ Which of the following is correct about the AICPA's attestation standards?

a$.$ The attestation standards supersede generally accepted auditing standards.

b$.$ The attestation standards supersede generally accepted auditing standards only for financial statement audits of publicly traded corporations.

c$.$ The attestation standards apply to all attest engagements.

d$.$ The attestation standards derive their authority from general acceptance among practitioners.

$8.$ Which of the following procedures is not appropriate to a review of interim financial information?

a$.$ Confirm cash balances with all banks and depositories.

b$.$ Make inquiries concerning the accounting system and any significant changes in

the internal control structure.

c$.$ Perform analytical procedures to identify and provide a basis for inquiry about relationships and individual items that appear unusual.

d$.$ Read the minutes of meetings of stockholders, boards of directors, and committees of the board.

$9.$ When reporting on a separate interim period, an accountant's report would:

a$.$ State that a review was made in accordance with AICPA standards.

b$.$ Refer to generally accepted auditing standards.

c$.$ Refer to the consistent application of generally accepted accounting principles.

d$.$ Explain the accountant's responsibility for annual financial statements.