ACCT 591 DeVry Complete Quiz Package

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Baker should issue an accountant's compilation report instead of a review report.
Baker should express a qualified opinion in the accountant's review report.
Question 6.6. (TCO E) (CPA-06724.B) Which of the following procedures should an accountant perform during an
engagement to compile prospective financial statements? (Points : 10)
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Test the entity's internal controls to determine if adequate controls exist so that financial projections can be
reasonably achieved.
Make inquiries prior to the date of the report about possible future transactions that may impact the forecast
once the report is issued.
Make inquiries about the accounting principles used in the preparation of the prospective financial statements.
Compare the prospective financial statements with the entity's historical results for the prior year.
Question 7.7. (TCO E) (CPA-06335.B) An accountant performing a compilation or review of the financial
statements of a nonissuer should: (Points : 10)
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Be able to justify departures from SSARS.
Never depart from SSARS guidelines.
Exercise professional judgment in applying SSARS, since they are considered recommendations as opposed
to standards.
Not depart from Statements on Auditing Standards.
Question 8.8. (CPA-03417.B) The objective of a review of interim financial information of a public entity is to provide
an accountant with a basis for reporting whether: (Points : 10)
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A reasonable basis exists for expressing an updated opinion regarding the financial statements that were
previously audited.
Material modifications should be made to conform with generally accepted accounting principles.
The financial statements are presented fairly in accordance with standards of interim reporting.
The financial statements are presented fairly in accordance with generally accepted accounting principles.
Question 9.9. (TCO E) (CPA-04741.B) Which of the following activities would most likely be considered an
attestation engagement? (Points : 10)
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Consulting with management representatives of a firm to provide advice.
Issuing a report about a firm's compliance with laws and regulations.
Advocating a client's position on tax matters that are being reviewed by the IRS.
Preparing a client's tax returns.
Question 10.10. (TCO E) (CPA-06301.B) Which of the following procedures would an accountant least likely
perform during an engagement to review the financial statements of a nonissuer? (Points : 10)
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Observing the safeguards over access to and use of assets and records.
Comparing the financial statements with anticipated results in budgets and forecasts.
Inquiring of management about actions taken at the board of directors' meetings.
Studying the relationships of financial statement elements expected to conform to predictable patterns.
ACCT 591 DeVry Week 3 Quiz Latest
Question 1.1. (TCO A) (CPA-05360.B) Prior to commencing field work, an auditor usually discusses the general
audit strategy with the client's management. Which of the following details do management and the auditor usually
agree upon at this time? (Points : 10)
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The specific matters to be included in the communication with those charged with governance.