According to the AICPA Web site indicated in question number four, what professional standards must a CPA follow when providing services that result in the issuance of a SOC 1 report or a SOC 2 report?
What will be an ideal response?
When providing a SOC 1 report, practitioners must follow the performance and reporting standards
contained in Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls
at a Service Organization.
In the provision of a SOC 2 report, using Trust Services principles and criteria, practitioners
should follow AT 101, Attestion Engagements). The AICPA has also issued a guide to help Service Auditors
in performing SOC 2 engagements. The guide is titled Reporting on Controls at a Service Organization
Relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy.
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Crowl Corporation is investigating automating a process by purchasing a machine for $792,000 that would have a 9 year useful life and no salvage value. By automating the process, the company would save $132,000 per year in cash operating costs. The new machine would replace some old equipment that would be sold for scrap now, yielding $21,000. The annual depreciation on the new machine would be $88,000. The simple rate of return on the investment is closest to (Ignore income taxes.):
A. 16.7% B. 5.1% C. 11.1% D. 5.7%
The cost of merchandise sold during the year was $60,0000 . Merchandise inventories were $10,500 and $12,500 at the beginning and end of the year, respectively. Accounts payable were $10,000 and $9,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total ________
a. $63,000 b. $61,000 c. $53,000 d. $57,000
Burke proposes that the most difficult organization change on the planet is ______.
A. NASA B. Kaiser Permanente C. the Veterans Administration D. none of these
The eurobond market owes its existence to all of the following reasons unique factors EXCEPT:
A) free bond ratings B) the absence of regulatory interference C) less stringent disclosure practices D) favorable tax treatment