which of the following statements about reporting on interim financial statements is 738535

Which of the following statements about reporting on interim financial statements is false?

a. The disclosure and reporting requirements for interim financial statements differ from those for annual financial statements.

b. Information disclosed in the latest annual financial statements must be repeated in the interim financial statements, except for

continuing contingencies and other uncertainties.

c. The negative assurance provided for interim financial state ments should be modified when there is a material departure from GAAP or inadequate disclosure.

d. Interim financial statements should include disclosures about events that occurred since the latest year end, such as changes in accounting principles or estimates and significant changes in financial position.

refer to exhibit 17 8 which provides an overview of reporting requirements for speci 738537

Refer to Exhibit 17.8, which provides an overview of reporting requirements for special purpose financial statements. In which of the following situations would the practitioner include an emphasis of matter paragraph alerting readers about the prepara tion in accordance with a special purpose framework?

a. When a cash basis is used. b. When a tax basis is used.

c. When a regulatory basis (for use by management and the regu lator only) is used.

d. When a contractual basis is used.

e. All of the above.

a compilation of prospective financial statements includes which of the following st 738539

A compilation of prospective financial statements includes which of the following steps?

a. Assembling prospective financial statements based on the responsible party’s assumptions.

b. Performing compilation procedures, including reading the pro spective financial statements, along with their assumptions and

accounting policies, and considering whether they appear to be

presented in conformity with AICPA presentation guidelines and that they are not obviously inappropriate.

c. Issuing a compilation report.

d. All of the above.

which of the following statements about forensic accounting is false a forensic acco 738540

Which of the following statements about forensic accounting is false?

a. Forensic accountants will examine, only on a sample basis,

material transactions believed to relate to the fraud.

b. Forensic accounting builds support for legal action against the person committing the fraud by identifying the fraud, calculat ing the damages caused by the fraud, and building both factual and testimonial evidence of the fraud.

c. The primary purpose of forensic engagements is to detect, investigate, and document a situation in which fraud almost certainly exists.

d. Forensic accountants are often asked to provide litigation sup

port, in which they are called on to give expert testimony about financial data and accounting activities.

which of the following statements relating to sustainability reporting is false a su 738541

Which of the following statements relating to sustainability reporting is false?

a. Sustainability reports are very similar and contain virtually identical information across entities because of the high level of

regulation governing such disclosures.

b. Sustainability reporting involves voluntary corporate disclosures about sustainability initiatives, plans, and associated outcomes.

c. Investor interest, socially responsible investment funds, and the

Dow Jones Sustainability Index have each created demand for sustainability reporting.

d. The terms nonfinancial reporting, corporate social responsibility reporting, triple bottom line reporting, and sustainability report

ing are often used to describe essentially the same activities.

russ major cpa drafted the following report on october 25 20xx at the completion of 738547

Russ Major, CPA, drafted the following report on October

25, 20XX at the completion of the engagement to compile the

financial statements of Ajax Company for the year ended Septem ber 30, 20XX. Ajax is a nonpublic entity in which Major’s child has a material direct financial interest. Ajax decided to omit sub stantially all of the disclosures required by GAAP because the financial statements will be only for management’s use. The state ment of cash flows was also omitted because management does not believe it to be a useful financial statement.

Identify the deficiencies contained in Major’s report on the compiled financial statements. Group the deficiencies by paragraph when applicable. Do not redraft the report.

To the Board of Directors of Ajax Company:

I have compiled the accompanying financial statements of Ajax Com pany as of September 30, 20XX, and for the year then ended. I planned and performed the compilation to obtain limited assurance about whether the financial statements are free of material misstatements.

A compilation is limited to presenting information in the form of financial statements. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objec tive of which is the expression of an opinion regarding the financial statements taken as a whole. I have not audited the accompanying financial statements and, accordingly, do not express any opinion on them.

Management has elected to omit substantially all of the disclosures required by generally accepted accounting principles. If the omitted disclosures were included in the financial statements, they might influ ence the user’s conclusions about the Company’s financial position, results of operations, and changes in financial position.

I am not independent with respect to Ajax Company. This lack of independence is due to my child’s ownership of a material direct financial interest in Ajax Company.

This report is intended solely for the information and use of the Board of Directors and management of Ajax Company and should not be used for any other purpose.

a staff auditor of erwachen amp diamond cpas has pre pared the following draft of an 738550

A staff auditor of Erwachen & Diamond, CPAs, has pre pared the following draft of an audit report on cash basis financial statements. Identify any deficiencies in the report and explain why they are deficiencies.

Auditor’s Report to the Shareholders of Halon Company:

We have audited the accompanying balance sheets and the related statement of income as of December 31, 2013 and 2012. These financial statements are the responsibility of the Company’s manage ment. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those principles require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material errors. An audit includes examining, on a test basis, evidence sup porting the amounts and disclosures in the financial statements. An audit also includes asses sing the accounting principles used and estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits pro vide a reasonable basis for our opinion.

As described in Note 13, these financial statements were prepared on the basis of cash receipts and disbursements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Halon Com pany as of December 31, 2013, and the results of operations for the year then ended in accordance with accounting principles gener ally accepted in the United States of America.

/s/ Donald Diamond, CPA February 15, 2014

young amp young cpas completed an examination of the financial statements of xyz com 738551

Young & Young, CPAs, completed an examination of the financial statements of XYZ Company, Inc. for the year ended

June 30, 20XX, and issued a standard unqualified auditor’s report dated August 15, 20XX. At the time of the engagement, the board of directors of XYZ requested a special report attesting to the ade quacy of the provision for federal and state income taxes and the related accruals and deferred income taxes as presented in the June

30, 20XX, financial statements. Young & Young submitted the appropriate special report on August 22, 20XX. Prepare the special report that Young & Young should have submitted to XYZ Com pany, Inc.

go to the web sites of the following organizations and review their agendas and rece 738554

Go to the Web sites of the following organizations and review their agendas and recent activities concerning assurance over sustainability disclosures:

AICPA

IFAC

IAASB

PCAOB

a. How do the activities of these organizations differ? And how are they similar?

b. If there is an organization that does not address sustainability, comment on the implications of that decision.

c. What are the implications of differences in sustainability assur ance provisions internationally?

access the web sites of two major manufacturing organiza tions of your choice locate 738555

Access the Web sites of two major manufacturing organiza tions of your choice. Locate the sustainability reports of these organizations.

a. How prominent was the link to the sustainability report on

each organization’s Web site?

b. Compare the length and detail of both reports, and comment on the differences.

c. Consider the corporate strategy of each organization, and dis cuss how that strategy relates to the sustainability disclosures

made by each organization.

d. Discuss how your perception of each organization differs now that you understand the respective sustainability efforts. Did your perception of the organization improve? Decline? Or change in some other way? Why?

e. Compare the level of assurance provided by each organization.

If there are differences in the level of assurance provided, dis cuss implications for particular elements of the sustainability report.

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