Question 1

There are five Trust Service principles,including security and integrity.

Accepted Answer

The answer of There are five Trust Service principles,including security...

Question 2

WebTrust services are performed under the direction of the SSARS.

Accepted Answer

WebTrust services are performed under the direction of the Trust Services Criteria, not under the direction of the SSARS (Statements on Standards for Accounting and Review Services).

Question 3

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

In examination attestation engagements, the practitioner expresses a positive opinion on the subject matter, indicating it is in accordance with criteria. In review attestation engagements, the practitioner provides a conclusion that is less in scope than an examination and results in negative assurance, indicating nothing has come to their attention that causes them to believe the subject matter is not in accordance with the criteria.

Question 4

Which are prospective financial statements that present an entity's expected financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief?

Accepted Answer

The answer of Which are prospective financial statements that present...

Question 5

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 6

Who developed the WebTrust service?
 Briefly explain this service.

Accepted Answer

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

Question 7

The guidance for service auditors has been moved to the attestation standards.

Accepted Answer

The guidance for service auditors has been moved to the attestation standards, specifically the Statement on Standards for Attestation Engagements (SSAE) No. 18.

Question 8

In a Type 2 engagement,the service auditor performs tests of the operating effectiveness of the controls,but does not have to perform any of the procedures performed in a Type 1 engagement.

Accepted Answer

In a Type 2 engagement, the service auditor not only performs tests of the operating effectiveness of the controls but also has to perform the procedures performed in a Type 1 engagement. This includes testing the suitability of the design of controls as well as their operability.

Question 9

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 client engages a CPA to provide reasonable assurance that the company's website complies with Trust Services principles. Reasonable assurance is a high level of assurance but it does not provide absolute certainty, nor does it provide a guarantee. Limited and moderate assurance are lower levels of assurance than reasonable assurance.

Question 10

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

Accepted Answer

The WebTrust service requires that a CPA update its testing of the e-commerce aspects of a entity's web site at least every twelve months. This ensures that the website is secure and trustworthy for customers to conduct their transactions.

Question 11

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

Accepted Answer

The use of positive assurance is not appropriate in a review attestation report. Reviews only provide limited assurance, not absolute assurance, which is provided by positive assurance. The report should state that the review provides limited assurance and describe the procedures that were performed.

Question 12

Which are prospective financial statements that present an entity's financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief,given one or more hypothetical assumptions?

Accepted Answer

The answer of Which are prospective financial statements that present...

Question 13

As a CPA you have been asked to examine an entity's financial projections.Acceptance of the engagement would be appropriate if distribution is limited to:

Accepted Answer

The best choice is D because financial projections are sensitive information and should only be distributed to parties with a legitimate interest in the entity's financial health. A financial institution negotiating a loan with the entity would have a legitimate interest in reviewing the financial projections to assess the entity's ability to repay the loan. Options A, B, and C would distribute the financial projections to a wider audience than necessary and could potentially increase the risk of the projections being used incorrectly or for fraudulent purposes.

Question 14

Which of the following is a type of prospective financial statement as defined by the AICPA attestation standards?

Accepted Answer

According to the AICPA attestation standards, a prospective financial statement is a financial statement presented as "what-if" or forecasted financial information. Option C is a type of prospective financial statement, which is a forecasted financial statement. Options A, B, and D are not types of prospective financial statements, but rather historical financial statements.

Question 15

Systrust services are performed under the direction of the SSAEs.

Accepted Answer

Systrust services are performed in compliance with the Statement on Standards for Attestation Engagements (SSAEs) issued by the American Institute of Certified Public Accountants (AICPA).

Question 16

CPAs must obtain a specific license to perform WebTrust or SysTrust services.

Accepted Answer

CPAs must obtain a specific license to perform WebTrust or SysTrust services.

Question 17

Briefly describe each of the five Trust Services principles.

Accepted Answer

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

Question 18

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

Accepted Answer

The attestation standards are used for services provided by certified public accountants (CPAs) that involve issuing a report on an assertion. Service A includes issuing a report on the effectiveness of internal control over financial reporting, which falls under the attestation standards. Services B, C, and D do not involve issuing a report on an assertion and therefore are not performed under the attestation standards.

Question 19

The service auditor's Type 2 report contains:

Accepted Answer

The Type 2 report includes both the opinions about the description and suitability of the design of controls that are issued in a Type 1 report, as well as an additional opinion about the operating effectiveness of controls throughout the period. It does not include an opinion on the financial statements or the service company's website.

Question 20

Briefly describe a SysTrust engagement.

Accepted Answer

The answer of Briefly describe a SysTrust engagement....

Quiz 25: Other Assurance Services

There are five Trust Service principles,including security and integrity.

WebTrust services are performed under the direction of the SSARS.

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.

Which are prospective financial statements that present an entity's expected financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief?

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.

Who developed the WebTrust service? Briefly explain this service.

The guidance for service auditors has been moved to the attestation standards.

In a Type 2 engagement,the service auditor performs tests of the operating effectiveness of the controls,but does not have to perform any of the procedures performed in a Type 1 engagement.

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?

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

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

Which are prospective financial statements that present an entity's financial position,results of operations,and cash flows,to the best of the responsible party's knowledge and belief,given one or more hypothetical assumptions?

As a CPA you have been asked to examine an entity's financial projections.Acceptance of the engagement would be appropriate if distribution is limited to:

Which of the following is a type of prospective financial statement as defined by the AICPA attestation standards?

Systrust services are performed under the direction of the SSAEs.

CPAs must obtain a specific license to perform WebTrust or SysTrust services.

Briefly describe each of the five Trust Services principles.

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

The service auditor's Type 2 report contains:

Briefly describe a SysTrust engagement.