Aud2 - Auditing Theory Quizzes PDF

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1. Assurance provided by a review is substantially less than an audit. Which of the following statements is true regarding these services?C. A review requires less evidence than an audit.2. When performing an engagement to review a nonpublic entity's financial statements, an accountant most likely w...

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1. Assurance provided by a review is substantially less than an audit. Which of the following statements is true regarding these services? C. A review requires less evidence than an audit. 2. When performing an engagement to review a nonpublic entity's financial statements, an accountant most likely would: Ask about actions taken at board of director's meetings. 3. Performing inquiry and analytical review procedures is the preliminary basis for a CPA to issue b. review report 4. Which of the following procedures is not included in a review engagement on a nonpublic entity? a. Communicating any material weaknesses discovered during the study and evaluation of internal accounting control. 5. A review does not provide assurance that the CPA will become aware of all significant matters that would be disclosed in an audit. However, if the CPA becomes aware that information coming to his attention is incorrect, incomplete, or otherwise unsatisfactory, he should a. Perform the additional procedures he deems necessary to achieve limited assurance 6. If the CPA has reason to believe that the information subject to review may be materially misstated, the CPA should a. Carry out additional or more extensive procedures. 7. The review of a company's financial statements by a CPA firm a. Is substantially less in scope of procedures than an audit. 8. A practitioners unmodified report on a review of the financial statements of a nonpublic entity should state that a. Nothing has come to the practitioner's attention thas causes the practitioner to believe that the financial statements are not presented fairly, in all material respects in accordance with PFRS.

9. If there had been a material scope limitation on a review engagement, the CPA may a. Not provide any assurance on the financial statements. 10. If the financial statements reviewed contain material misstatements, the practitioner's review report should: a. Either a or b....