The following questions concern attestation engagements.
Choose the best response.
a. A Type 1 service auditor’s report on internal controls at a service organization
(1) includes an opinion about the suitability of the design of controls at the service
organization.
(2) is based on the performance of tests of controls and substantive tests of transac-
tions at the service organization.
(3) contains an opinion about the operating effectiveness of internal controls at the
service organization.
(4) provides an opinion about the fair presentation of the service organization’s
financial statements in accordance with accounting standards.
b. Which of the following professional services would be considered an attestation
engagement?
(1) Preparing the income statement and balance sheet for one year in the future
based on client expectations and predictions.
(2) Providing financial analysis, planning, and capital acquisition services as a part-
time, in-house controller.
(3) Advising management in the selection of a computer system to meet business
needs.
(4) Advocating on behalf of a client about trust tax matters under review by the
Internal Revenue Service.
