ACCT 012

​ACCT 012

Year End Comp and Review

Multiple Choice

1.    Which of the following is TRUE?

• a.    Every engagement needs an engagement letter.

• b.    Financial statement engagement letters are sufficient for nonattest services.

• c.    Financial statement engagement letters trump other engagement letters.

Multiple Choice

2.    Which of the following statements CAUSES the engagement described to be a preparation engagement:

• a.    Adjusting journal entries are prepared

• b.    The client requests financial statements not a part of a compilation/review/audit

• c.    We have a signed engagement letter for a preparation engagement

Multiple Choice

3.    Who is responsible for finalization?

• a.    Always the admin assistant

• b.    Always the in-charge

• c.    Always the Principal

• d.    It depends

Multiple Choice

4.    Which of the following is NOT a policy election?

• a.    Hindsight practical expedients

• b.    Lease term

• c.    Package of 3 practical expedients

• d.    Risk-free rate

• e.    Short-term lease

Multiple Choice

5.    When do we care whether individual entities have applied lease accounting rules to related parties that will be consolidated/combined together?

• a.    Always

• b.    Never

• c.    When presenting consolidatED/combinED statements

• d.    When presenting consolidatING/combinING statements