Question 1

When a CPA performs an examination engagement under the attestation standards,the amount of evidence gathered is ________ and the level of assurance is ________.

Accepted Answer

When a CPA performs an examination engagement under the attestation standards, the amount of evidence gathered is extensive. The CPA is required to gather sufficient appropriate evidence to support their conclusions. Additionally, the level of assurance is high, as the CPA expresses an opinion on whether the subject matter being examined is presented fairly, in all material respects, based on the applicable criteria.

Question 2

What type of SOC report is intended to meet the needs of a broad range of users who need information and assurance about controls at s service organization that affect the security,availability,and processing integrity of the systems the service organization uses to process users' data and the confidentiality and privacy of the information processed by these systems?

Accepted Answer

SOC 2 report is intended to meet the needs of a broad range of users who need information and assurance about controls at a service organization that affect the security, availability, and processing integrity of the systems the service organization uses to process users' data and the confidentiality and privacy of the information processed by these systems. SOC 1 report is focused on controls related to financial reporting, and SOC 3 report provides a general overview of the service organization's controls without going into great detail.

Question 3

The use of positive assurance is appropriate in a review attestation report.

Accepted Answer

Positive assurance is not appropriate in a review attestation report, as it only provides limited assurance rather than full assurance on the financial statements. Review attestation reports typically use negative assurance, which means the auditor is stating that they are not aware of any material modifications that need to be made to the financial statements.

Question 4

What type of SOC report is intended to meet the needs of entities that use service organizations and their auditors,who are responsible for understanding internal controls over financial reporting at service organizations?

Accepted Answer

SOC 1 reports specifically address internal controls over financial reporting, making it the best choice for entities and their auditors concerned with this area. SOC 2 reports are more focused on controls related to security, availability, confidentiality, processing integrity, and privacy, while SOC 3 reports provide a general overview of a service organization's controls without going into as much detail as a SOC 2 or SOC 1 report.

Question 5

Which of the following services is performed under the attestation standards?

Accepted Answer

The answer of Which of the following services is performed...

Question 6

Which of the following is not one of the five Trust Services principles?

Accepted Answer

The five Trust Services principles are security, confidentiality, privacy, processing integrity, and availability. Completeness is not one of the Trust Services principles.

Question 7

When performing an attestation engagement,a CPA is required to adhere to the Statements on Standards for Attestation Engagements.Describe below the Standards of Field Work for attestation engagements.

Accepted Answer

The answer of When performing an attestation engagement,a CPA is...

Question 8

WebTrust services are performed under the direction of the SSARS.

Accepted Answer

WebTrust services are actually performed under the direction of the Trust Services Criteria (TSC), which are issued by the American Institute of Certified Public Accountants (AICPA). SSARS (Statements on Standards for Accounting and Review Services) are a different set of standards that apply to accounting and review engagements.

Question 9

The AICPA has discontinued the SysTrust seal program.

Accepted Answer

The AICPA discontinued the SysTrust seal program in 2019 and replaced it with the SOC 2 (Service Organization Controls) reporting framework.

Question 10

Statements on Standards for Attestation Engagements (SSAEs )are issued by the Auditing Standards Board of the AICPA.

Accepted Answer

SSAEs are issued by the Auditing Standards Board of the AICPA.

Question 11

Briefly describe each of the five Trust Services principles.

Accepted Answer

The answer of Briefly describe each of the five Trust...

Question 12

An agreed-upon procedures engagement is one in which

Accepted Answer

An agreed-upon procedures engagement is one in which the CPA, the responsible party making the assertions, and the specific persons who are the intended users of the CPA's report agree to all the procedures the CPA will perform. These procedures are designed to meet specific needs of the parties involved and may not be comprehensive like an audit. The CPA does not provide an opinion on the financial statements in this type of engagement. Instead, the report describes the procedures performed and the results obtained.

Question 13

In a WebTrust attestation engagement the client engages a CPA to provide what level of assurance that the company's website complies with Trust Services principles?

Accepted Answer

In a WebTrust attestation engagement, the CPA provides reasonable assurance that the company's website complies with Trust Services principles. This means that the CPA provides a high level of assurance, but it is not absolute or complete. The CPA performs sufficient procedures to obtain evidence and provide a level of assurance that is appropriate in the circumstances. The other options are not correct because absolute assurance is not possible, limited assurance is a lower level of assurance, and moderate assurance is not a recognized level of assurance in a WebTrust engagement.

Question 14

Who developed the WebTrust service?
 Briefly explain this service.

Accepted Answer

The answer of Who developed the WebTrust service?
 Briefly explain...

Question 15

The WebTrust service requires that a CPA update its testing of the e-commerce aspects of an entity's website at least every

Accepted Answer

The WebTrust service requires that a CPA update its testing of the e-commerce aspects of an entity's website at least every twelve months.

Question 16

The service auditor's Type 2 report contains

Accepted Answer

The Type 2 report includes the same two opinions as the Type 1 report (description and suitability of the design of controls), as well as an additional opinion on the operating effectiveness of controls throughout the period being audited. This report is focused on evaluating the actual functioning of controls, rather than just their design. The report does not include an opinion on financial statements or a company's website.

Question 17

Which of the following types of engagement reports would provide positive assurance?

Accepted Answer

An examination engagement provides positive assurance as the CPA expresses an opinion on whether the financial statements are fairly presented in all material respects in accordance with the applicable financial reporting framework.

Question 18

Of the three types of attestation engagements,examination engagements provide a higher level of assurance than agreed-upon procedures engagements but less than review engagements.

Accepted Answer

Examination engagements provide the highest level of assurance, followed by review engagements, and then agreed-upon procedures engagements, which do not provide assurance but instead report findings.

Question 19

Auditors of the financial statements of public companies must follow the guidelines in the SSAEs.

Accepted Answer

Auditors of the financial statements of public companies must follow the guidelines in the PCAOB (Public Company Accounting Oversight Board) standards, not the SSAEs (Statements on Standards for Attestation Engagements), which are for non-public companies.

Question 20

Examination attestation engagements result in a conclusion that is in a positive form,whereas review attestation engagements result in a conclusion in the form of a negative assurance.

Accepted Answer

This statement is true. Examination attestation engagements result in a positive conclusion, meaning that the auditor provides a statement that the subject matter being attested to is fairly presented, while review attestation engagements result in a negative assurance conclusion, meaning that the auditor provides a statement that they are not aware of any material modifications that should be made to the subject matter.

Quiz 25: Other Assurance Services

When a CPA performs an examination engagement under the attestation standards,the amount of evidence gathered is and the level of assurance is .