Study Unit 1

STUDY UNIT 1

1. In performing an attestation engagement, a CPA typically:

Expresses a conclusion about an assertion.

2. AT 101 states five general standards, two standards of field work, and four standards of reporting. These standards:

Apply only to attest services rendered by a CPA in the practice of public accounting.

3. Which of the following field work or reporting standards included in GAAS explicitly corresponds to an attestation standard?

The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.

4. Which of the following professional services is considered an attest engagement?

An engagement to report on compliance with statutory requirements.

5. Which of the following is not an attestation standard?

A sufficient understanding of internal control shall be obtained to plan the engagement.

6. The expansion of the attest function has resulted in attestation standards of reporting that are organized differently from the auditing standards of reporting. Consequently, the attestation standards of reporting:

Reflect the limitation of the use of certain reports to specified users.

7. Which of the following is a conceptual difference between the attestation standards and generally accepted auditing standards?

The attestation standards provide a framework for the attest function beyond historical financial statements.

8. Which of the following is the authoritative body designated to promulgate attestation standards?

Auditing Standards Board.

9. A CPA is required to comply with the provisions of Statements on Standards for Attestation Engagements (SSAE) when engaged to:

Review management’s discussion and analysis (MD&A) prepared pursuant to rules and regulations adopted by the SEC.

10. The primary reason for an audit by an independent, external audit firm is to:

Provide increased assurance to users as to the fairness...