19-25 occasionally, public accounting firms are engaged to report on

19-25 Occasionally, public accounting firms are engaged to report on specified elements, accounts, and items of financial statements.


Don't use plagiarized sources. Get Your Custom Essay on
19-25 occasionally, public accounting firms are engaged to report on
From as low as $5/Page
Order Essay
  1. Discuss three types of reports that may be provided for specified elements, accounts, and items of financial statements.

Why should reports on the application of agreed-upon procedures to information be restricted to specified users?


19-27 In connection with a public offering of first-mortgage bonds by Guizzetti Corporation, the bond underwriter has asked Guizzetti’s CPAs to furnish it with a comfort letter giving as much assurance as possible on Guizzetti’s unaudited financial statements for the three months Page 748ended March 31. The CPAs had expressed an unqualified opinion on Guizzetti’s financial statements for the year ended December 31, the preceding year; they also performed a review of Guizzetti’s financial statements for the three months ended March 31. Nothing has come to their attention that would indicate that the March 31 statements are not properly presented.


  1. Explain what can be stated about the unaudited financial statements in the letter.

Discuss other matters that are typically included in comfort letters.


19-29 Select the best answer for each of the following and explain fully the reason for your selection.

a. Which of the following is not typically performed when the auditors are performing a review of client financial statements?

(1) Analytical procedures applied to financial data.

(2) Inquiries about significant subsequent events.

(3) Confirmation of accounts receivable.

(4) Obtaining an understanding of accounting principles followed in the client’s industry.


b. Which of the following must be obtained in a review of a nonpublic company?


Engagement Letter

Representation Letter













c. A CPA who is not independent may perform which of the following services for a nonpublic company?



















d. When performing a review of a nonpublic company, which is least likely to be included in auditor inquiries of management members with responsibility for financial and accounting matters?

(1) Subsequent events.

(2) Significant journal entries and other adjustments.

(3) Communications with related parties.

(4) Unusual or complex situations affecting the financial statements.

e. The proper report by an auditor relating to summarized financial statements includes:

(1) A statement about the type of opinion expressed in the prior year.

(2) An adverse opinion.

(3) An opinion on whether the summarized information is fairly stated in all material respects in relation to the basic financial statements.Page 749

(4) No assurance on the information.

f. Concerning interim quarterly financial statements, management of public companies:

(1) Must engage CPAs to audit the statements.

(2) Must engage CPAs to review the statements.

(3) May choose to engage CPAs to review the statements.

(4) May not engage CPAs to become associated with the statements.

g. A proper compilation report on financial statements that omit note disclosures:

(1) Includes an adverse opinion.

(2) Includes a disclaimer of opinion on the accuracy of such note disclosures.

(3) Indicates that management has omitted such information.

(4) Indicates that note disclosures are not necessary for those not informed about such matters.

h. Which of the following forms of accountant association always leads to a report intended solely for certain specified parties?

(1) Compilation.

(2) Review.

(3) Examination.

(4) Agreed-upon procedures.

i. Which assertion is generally most difficult to attest to with respect to personal financial statements?

(1) Existence and occurrence.

(2) Rights and obligations.

(3) Completeness.

(4) Valuation.

j. Financial statements prepared following which of the following are most likely to be considered a special-purpose financial reporting framework?

(1) Generally accepted accounting principles.

(2) International Financial Reporting Standards.

(3) Financial reporting standards of a foreign nation.

(4) The cash basis of accounting.

k. In which of the following reports should a CPA not express negative (limited) assurance?

(1) A standard compilation report on financial statements of a nonpublic entity.

(2) A standard review report on interim financial statements of a public entity.

(3) A standard review report on financial statements of a nonpublic entity.

(4) A comfort letter on financial information included in a registration statement filed with the Securities and Exchange Commission.

l. Comfort letters to underwriters are normally signed by the:

(1) Independent auditor.

(2) Underwriter.

(3) Client’s lawyer.

(4) Chief executive officer.



Indicate whether a CPA may provide each of the following services, and whether independence is required, by placing a check in the appropriate box.


May provide; Independence is Required

May provide; Independence is Not Required

May not provide

a.       Provide an opinion on whether financial statements are prepared following the cash basis of accounting.




b.      Compile the financial statements for the past year and issue a publicly available report.




c.       Apply certain agreed-upon procedures to accounts receivable for the purposes of obtaining a loan, and express a summary of findings relating to those procedures.




d.      Review quarterly information and issue a report that includes limited assurance.




e.       Perform an audit of the financial statements on whether they are prepared following generally accepted accounting principles.




f.       Compile the financial statements for the past year, but do not issue a report since the financial statements are only for the company’s use.





Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Confirm Eligibility