Reference no: EM132669831

Problem 1: What is the major difference introduced for auditors when a client prepares financial statements using a special purpose framework?

Multiple Choice

Option 1: The nature and type of relationships leading to impaired independence on the part of the auditors.

Option 2: The scope of the engagement and level of assurance that can be provided on the financial statements.

Option 3: The nature of accounting procedures used by the client to prepare its financial statements.

Option 4: The nature of auditing procedures applied by the auditors.

Problem 2: A compilation report should include all of the following except:

Multiple Choice

Option 1: A statement that the compilation has been performed in accordance with Statements of Standards for Accounting and Review Services.

Option 2: A statement that the financial statements are the representations of management.

Option 3: A statement that the financial statements have not been audited or reviewed.

Option 4: A statement that all necessary supplemental disclosures have been provided to accompany the financial statements.