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CPA-offered Attest Services

1 Which one of the following types of services offered by a CPA is not an attest service?
a.examination
b.review
c.performing agreed-upon procedures
d.audit
e.accounting

2 Internal auditors are primarily involved with:
a.compliance audits.
b.operational audits.
c.compliance audits and operational audits.
d.financial statement audits.
e.governmental audits.

3 In order for a plaintiff to recover against an auditor under the 1933 Securities Act, he or she must normally prove:
a.reliance on the financial statements.
b.gross negligence on the part of the auditor.
c.the financial statements were materially false or misleading.
d.ordinary negligence on the part of the auditor.
e.reliance, misleading statements and ordinary negligence.

4. Which of the following would be an example of a foreseeable party?
a.all creditors
b.stockholders
c.present investors
d.future investors
e.all of the above

Solution Preview

1 Which one of the following types of services offered by a CPA is not an attest service?
a. examination
b. review
c. performing agreed-upon procedures
d. audit
e. accounting

Accounting assistance does not provide an opinion as the other four do. Answer is e.

2 Internal auditors are primarily involved with:
a. compliance audits.
b. operational audits.
c. compliance audits and operational audits.
d. financial statement audits.
e. governmental audits.

Internal auditors normally deal with operations and often in a budget or forecast mode. Some might say that compliance audits could be performed by internal auditors in terms of ...

Solution Summary

For each of the questions, the response explains the answer including references as appropriate.

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