Chapter 20

Additional Assurance Services: Other Information

True / False Questions

1. Assurance services improve the quality of information or its context for decision
makers.
True False

2. Attestation services are similar, but go beyond assurance services in scope of

procedures and reporting.
True False

3. Independence is required for the performance of all assurance services.

True False

4. Practitioners may report on either an assertion about the subject matter, or on the
subject matter for most attestation engagements.
True False

5. Attestation risk, like audit risk consists of three components--inherent risk, control
risk, and substantiation risk.
True False

6. The attestation standards prohibit the examination of prospective financial

statements.
True False
11. Which of the following is least likely to be included in an agreed-upon procedures
attestation engagement report?
A. The specified party takes responsibility for the sufficiency of procedures.
B. Use of the report is restricted.
C. Limited assurance on the information presented.
D. A summary of procedures performed.

12. Conditions exist that result in a material deviation from the criteria against which
the subject matter was evaluated during an examination performed following the
attestation standards. The CPA's conclusion may be on:

A. Option A
B. Option B
C. Option C
D. Option D
13. Suitable criteria in an attestation engagement may be

available:
A. Option A
B. Option B
C. Option C
D. Option D

14. When performing an attestation examination engagement, which of the following

is not always required?
A. Assertion.
B. Practitioner independence.
C. Subject matter.
D. Suitable criteria.

15. Which of the following engagements is most likely to consider availability,

security, integrity, and maintainability of a company's computer systems?
A. Internal control over financial reporting.
B. Trust Services.
C. Website Asssociate.
D. Financial statement audit.
16. Which of the following are Trust Services principles?

A. Option A
B. Option B
C. Option C
D. Option D
17. Which of the following is the least likely to be considered subject matter of an
attestation engagement?
A. Assertion.
B. Behavior.
C. Historical event.
D. Systems and processes.

18. Arel, CPA, was engaged by a group of royalty recipients to apply agreed-upon
procedures to financial data supplied by Modit Co. regarding Modit's written assertion
about its compliance with contractual requirements to pay royalties. Arel's report on
these agreed-upon procedures should contain a (an).
A. Disclaimer of opinion about the fair presentation of Modit's financial statements.
B. List of the procedures performed (or reference thereto) and Arel's findings.
C. Opinion about the effectiveness of Modit's internal control activities concerning
royalty payments.
D. Acknowledgment that the sufficiency of the procedures is solely Arel's
responsibility.

19. Assurance services performed for decision makers may address

the:
A. Option A
B. Option B
C. Option C
D. Option D
20. Which of the following is not necessarily an attest engagement?
A. An elder care engagement.
B. A WebTrust engagement.
C. An examination of internal control over financial reporting for a nonpublic
company.
D. A review of management's discussion and analysis.