How many paragraphs does the standard review report for U.S. nonpublic companies or development stage companies have?

How many paragraphs does the standard review report for U.S. nonpublic companies or development stage companies have?

a. One.
b. Two.
c. Three.
d. Four.








Answer: C

Which one of the following procedures is not a standard procedure when performing a review?

Which one of the following procedures is not a standard procedure when performing a review?

a. Assess the internal control over financial reporting.
b. Read the financial statements to determine whether they appear to conform to GAAP.
c. Obtain or prepare a trial balance of the general ledger and foot and reconcile it to the general ledger.
d. Trace the financial statement amounts to the trial balance.









Answer: A

Which of the following services provides limited assurance?

Which of the following services provides limited assurance?

a. Review.
b. Audit.
c. Examination.
d. Compilation.








Answer: A

Which of the following engagements requires less evidence than a review of financial statements?

Which of the following engagements requires less evidence than a review of financial statements?

a. A compilation.
b. An audit.
c. An examination.
d. Attestation.







Answer: A

A compilation report provides the user with which one of the following types of assurance?

A compilation report provides the user with which one of the following types of assurance?

a. No assurance.
b. Absolute assurance.
c. Limited assurance.
d. Negative assurance.





Answer: A

A review report provides the user with which one of the following types of assurance?

A review report provides the user with which one of the following types of assurance?

a. Reasonable assurance.
b. Basic assurance.
c. Absolute assurance.
d. Limited assurance.








Answer: D

Which of the following is an accounting service that involves performing inquiry and analytical procedures as a reasonable basis for expressing limited assurance that no material modifications need to be made to the financial statements in order for the financial statements to conform to GAAP?

Which of the following is an accounting service that involves performing inquiry and analytical procedures as a reasonable basis for expressing limited assurance that no material modifications need to be made to the financial statements in order for the financial statements to conform to GAAP?

a. A compilation.
b. An audit.
c. A review.
d. An agreed upon procedure.









Answer: C