Attestation risk is limited to a low level in which of the following engagement(s)?
A. Both examinations and reviews
B. Examinations, but not reviews
C. Reviews, but not examinations
D. Neither examinations nor reviews
The most significant audit step in substantiating additions to the office furniture
account balance is
a. examination of vendors' invoices and receiving reports for current year's
acquisitions.
b. review of transactions near the balance sheet date for proper period cutoff.
c. calculation of ratio of depreciation expense to gross office equipment cost.
d. comparison to prior year's acquisitions.
The risk associated with a company's survival and profitability is referred to as:
E. Business Risk
F. Information Risk
G. Detection Risk
H. Control Risk
An engagement in which a CPA firm arranges for a critical review of its practices by
another CPA firm is referred to as a(n):
I. Peer Review Engagement
J. Quality Control Engagement
K. Quality Assurance Engagement
L. Attestation Engagement
Instead of taking a physical inventory count on the balance sheet date, the client may
take physical counts prior to the year end if internal controls are adequate and
a. computerized records of perpetual inventory are maintained.
b. inventory is slow moving.
c. CBIS error reports are generated for missing pre-numbered inventory
tickets.
d. obsolete inventory items are segregated and excluded.