Which of the following statements is correct regarding a review engagement of a nonpublic company's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS)? a. An accountant must establish an understanding with the client in an engagement letter. b. An accountant must obtain an understanding of the client's internal control when performing a review. c. A review provides an accountant with a basis for expressing limited assurance on the financial statements. d. A review report contains an accountant's opinion of the financial statements taken as a whole. Show
33. Which of the following statements is (are) true regarding the provision of an assurance services?I The third party who receives the assurance generally pays for the assurance received.II Assurance services always involve a report by on person to a third party on which an independent organizationprovide assurance.III Assurance services can be provided either on information or process.a.I and IIIc. III onlyb.I and IId. I, II and III 34. The creation of FRSC and AASC is intended to assist the BOA in carrying out its functions to Get answer to your question and much more 35. The communication to the public of facts about a professional accountant which are not designed for thedeliberate promotion of that professional accountant Get answer to your question and much more 36. Firm includes the following except Get answer to your question and much more 37. Which of the following statements concerning materiality threshold isincorrect?a. aggregate materiality threshold are a function of the auditor’s preliminary judgment concerning audit risk.b. the smallest aggregate level of errors or fraud that could be considered material to any of the financial statementsis referred to as a materiality threshold.c. materiality threshold may change between the planning and review stages of the audit.d. in general, the more misstatements the auditor expects, the higher should be the aggregate materiality threshold 38. Of the following procedures, which is the most important that an auditor should use when performing ananalytical review of the income statement? Get answer to your question and much more Homework Help This preview shows page 33 - 36 out of 38 pages. Which of the following statements is correct regarding a review of a nonpublic entity's financial statements inaccordance withStatements on Standards for Accounting and Review Services(SSARS)?a.The accountant must be independent to issue the review report.b. An opinion is expressed in the review report.c. The accountant is required to assess the risk of fraud.d. It is not necessary for the accountant to obtain a management representation letter. An accountant is required to comply with the provisions of theStatements on Standards for Accounting and ReviewServiceswhen performing which of the following tasks? Get answer to your question and much more Which of the following procedures would an accountant most likely perform during an engagement to review thefinancial statements of a nonissuer in accordance withStatements on Standards for Accounting and ReviewServices? Get answer to your question and much more An accountant is required to comply with the provisions of Statements on Standards for Accounting and ReviewServices when:I.Reproducing client-prepared financialstatements, withoutmodification, as anaccommodation to aclient.II.Preparing standardmonthly journal entries fordepreciation andexpiration of prepaidexpenses. Get answer to your question and much more In accordance withStatements on Standards for Accounting and Review Services, when providing limitedassurance that the financial statements of a nonissuer require no material modifications to be in accordance withGAAP, the accountant should:a.Understand the accounting principles of the industry in which the entity operates.b. Perform tests of controls to evaluate the effectiveness of the controls.c. Assess the risk of material misstatement in the financial statements due to fraud.d. Communicate with the audit committee regarding material weaknesses in internal control. An accountant has been engaged to review a nonissuer's financial statements that contain several departures fromGAAP. Management is unwilling to revise the financial statements, and the accountant believes that modification ofthe standard review report is inadequate to communicate the deficiencies. Under these circumstances, theaccountant should: Get answer to your question and much more Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 38 pages? Upload your study docs or become a Course Hero member to access this document Tags Accountant, Auditor s report When performing a review on financial statements the CPA is required to?Reviewed Financial Statements must be performed by an independent licensed CPA firm. The accountant must obtain evidence that will provide a reasonable basis for obtaining the limited assurance needed that there are no material modifications that should be made to the financial statements.
Which of the following statements best describes assurance services?Answer choice: C. Independent professional services that are intended to enhance the credibility of information to meet the needs of an intended user. Explanation: Assurance services enhance the credibility of information.
Which one of the following engagements provide the greatest level of assurance?Audit: The Highest Level of Assurance
An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor, or as established by general practice.
What are the two types of services provided in connection with the Statements on Standards for Accounting and Review Services?2) The two types of services provided in connection with the Statements on Standards for Accounting and Review Services are: A) audit and examination services.
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