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33 Cards in this Set
- Front
- Back
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A preparation engagement is
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a nonattest service |
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a Nonattest service does not require?
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an accountant to be independent of entity |
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In a nonattest service within a preparations engagement there is no need to? |
-obtain evidence to express opinion/conclusion -report on financial statements |
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Preparations engagement cannot be relied on to identify or disclose?
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-wrongdoing -noncompliance with laws and regulations |
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in a preparations engagement accountants use software to?
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generate statements and release them to a client without a report |
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The objective of a compilation is to?
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apply accounting, financial reporting expertise to assist management in presentation of financial statements without undertaking to obtain/provide assurance |
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In a compilation the accountant is required to?
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-report on statements -disclaim assurance -disclose lack of independence -include name in report |
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objective of a review of financial statements is to?
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obtain limited assurance as basis for reporting awareness of material modifications to be made to statements so they are in accordance with reporting framework |
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(T/F) in a review the accountant must be independent.
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True |
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reviews are performed primarily through?
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inquiry and analytical procedures |
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in Agreed-Upon Procedures the practitioner is engaged to?
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assist specified parties to evaluate subject matter/assertion |
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in agreed-upon procedures the report is?
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restricted to specified users |
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in agreed upon procedures the practitioner provides what type of assurance? |
none |
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(T/F) in agreed upon procedures the practitioner must be independent
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True |
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Prospective financial statements are?
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financial forecasts/projections |
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Financial forecasts/projections in prospective financial statements include?
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-accounting policies |
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In prospective financial statements a CPA compiles/examines/applies agreed-upon procedures if?
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statements expected to be used by third party |
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2 types of prospective financial statements
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-Financial projections |
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Financial forecasts present?
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-expected financial position -results of operations -cash flows |
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Financial projections are based on?
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assumptions reflecting conditions and course of actions given hypotheticals. |
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Pro forma financial information shows
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what would have happened if an event had occurred earlier |
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an accountant may ...... or ...... pro forma financial information.
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-review |
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Examination of internal control involves?
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-expressing opinion in coordination with financial statements of audit |
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In an examination of internal control practitioner independence (is/is not) required
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is |
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a compliance attestation involves examining whether entity is?
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in a compliance attestation ........ .... engagement may be performed but not a ....... engagement
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-review |
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Management discussion and analysis (MD&A) may be included in?
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annual report or other documents filed with SEC |
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Management Discussion and Analysis (MD&A) constitues
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written assertion that may be examined/reviewed by practitioner. |
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In a Management Discussion and Analysis (MD&A) the practitioner who examines/reviews assertions (must/must not) be independent.
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Must |
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Reporting on controls at a service organization involves
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examination engagements undertaken by a service auditor to report controls at organizations that provide services to user entities
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In a compilation what type of assurance is given?
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None |
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In a compilation we will issue a?
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In a compiliation there (isn't/is) a need for practitioner to be independent
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isnt
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