Accounting and Review Services Take Home Quiz
February 6, 2008
1. On the Scantrom form in box labeled “Test No.” print “Review Services.”
2. Use the Scantron form to indicate your answers to the questions below.
3. Turn-in the Scantron sheet on the due date.
4. Open book, open note, online searches are all allowed.
5. NOT allowed – using other students, people or CPA exam review books.
Suggestion: If you plan to take the Auditing portion of the CPA Exam “soon,” take 10 –
15 minutes to review your notes and text, and then take the quiz without notes, etc.
After that if you want to do research and change answers do so, but keep track of the original answers so you can assess your knowledge level for this topic.
1. 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.
2. Which of the following procedures does a CPA normally perform first in a review engagement in accordance with Statements on Standards for Accounting and
Review Services (SSARS)?
a. Inquiry regarding the client’s principles and practices and the method of applying them b. Inquiry concerning the effectiveness of the client’s system of internal control
c. Inquiry to identify transactions between related parties and management
d. Inquiry of the client’s professional advisors including bankers, insurance agents, and consultants.
3. North Co., a privately