Types of Assurance Engagements What is the difference between reasonable assurance engagements and limited assurance engagements?
According to the IAASB, reasonable assurance engagements are those whose objective "is a reduction in assurance engagement risk to an acceptably low level in the circumstances of the engagement as the basis for a positive form of expression of the practitioner's conclusion" (International Standards on Assurance Engagements, ISAE, paragraph 11). According to the IAASB, limited assurance engagements are those whose objective "is a reduction in assurance engagement risk to a level that is acceptable in the circumstances of the engagement, but where that risk is greater than for a reasonable assurance engagement, as the basis for a negative form of expression of the practitioner's conclusion" (ISAE paragraph 11). In limited assurance engagements, the practitioner performs limited procedures (usually analysis of an issue but without significant testing) and checks to see if anything comes to their attention indicating a problem.
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A. Footnotes to the financial statements disclose the difference between net income and the cash provided or used by financing activities. B. Noncash investing and financing activities is included in the statement of cash flows. C. The income statement is prepared under the cash basis of accounting. D. Net income is adjusted for changes in noncurrent assets and noncurrent liabilities. E. Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities.
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Indicate whether the statement is true or false
Which of the following agreements were made as a part of the Basel III Accord (2010)??
A. ?Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises B. ?Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions C. ?Agreement to create new organizations to help provide consumers clear and accurate information related to credit so that better-informed decisions can be made D. Agreement to permit the U.S. government to purchase up to $700 billion in troubled mortgages in an attempt to improve liquidity in the financial markets? E. ?Agreement to limit the salaries of executives whose companies received Troubled Asset Relief Program (TARP) funds.
________ consider proposed fixed-asset outlays, research and development activities, marketing and product development actions, capital structure, and major sources of financing
A) Short-term financial plans B) Long-term financial plans C) Pro forma statements D) Cash budgeting