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Multiple Choice
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1

For non-public companies not subject to the standards of the PCAOB, reports on internal control are an example of which of the following types of engagements?
A)Audit.
B)Attest.
C)Assurance.
D)Special reports.
2

In a CPA PrimePlus™ engagement, visiting the client and inspecting logs, diaries, or other evidence to support that the services contracted have been provided appropriately is an example of
A)Assurance services.
B)Consulting/facilitating services.
C)Monitoring services.
D)Direct services.
3

In an attest engagement, the CPA is referred to as a(n)
A)Attester.
B)Auditor.
C)Public accountant.
D)Practitioner.
4

When a CPA firm examines projected financial statements, their report should include a separate paragraph that:
A)Describes the limitations on the usefulness of the presented statements.
B)States that the CPA firm is responsible for the opinion presented for only a specified amount of time.
C)Provides an explanation of the difference between an audit and an examination.
D)Disclaims an opinion on whether the assumptions listed provide a reasonable basis for the projection.
5

Which of the following is not considered a type of assurance service currently provided by CPA firms?
A)Healthcare.
B)Systems reliability & e-commerce.
C)Estate planning.
D)Risk assessment.
6

Which of the following services would be considered an attest engagement?
A)Compilation of financial statements from a client's accounting records.
B)A tax engagement to prepare state and federal tax returns.
C)Providing information systems advice to a former audit client.
D)Reporting on compliance with a university's accreditation requirements.
7

Compilation reports can be in any of the following forms except:
A)Compilation with full disclosure.
B)Compilation that omits substantially all disclosures.
C)Compilation with partial assurance.
D)Compilation when the accountant is not independent.
8

When conducting a review, the accountant's work includes would not include which of the following procedures?
A)Confirming accounts receivable.
B)Obtaining a general understanding of the entity's compensation methods.
C)Performing analytical procedures.
D)Obtaining a representation letter from management.
9

When engaged to compile the financials of a non-public entity, the CPA is required to possess a level of knowledge of the entity's accounting principles and practices. This requirement will most likely include obtaining an understanding of the:
A)Qualifications of the accounting department personnel.
B)Risk factors associated with potential illegal acts.
C)Internal control structure in place.
D)None of the above.
10

The objectivity of an internal audit department will most likely be enhanced if it reports to the client's:
A)Audit committee
B)Chief Financial Officer [CFO]
C)Controller
D)Senior Management Team [as a group]
11

Which of the following is generally considered one of the main reasons why internal auditors evaluate the effectiveness of their company's internal control structure?
A)To determine whether all risks and exposures of the company have been either reduced or eliminated.
B)To determine whether the established internal controls are functioning as intended by management.
C)To determine the extent of reliance the internal auditors can place on the controls in the process of evaluating the financial statements.
D)To reduce the amount of detailed testing for their external auditors.





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