Chapter 1 Introduction and Overview of Audit and Assurance 1) GAAP and IFRS are examples of applicable financial reporting framework. Answer: TRUE Explanation: The applicable financial reporting framework refers to the set of standards used in preparing the historical financial statements, such as GAAP, IFRS or a Federal Income Tax Basis of Accounting. Diff: 1 LO: 1 Bloom: Knowledge Min: 1 AACSB: Communication AICPA: AC: Reporting 2) Review of financial forecasts falls under attestation services. Answer: TRUE Explanation: Attestation services (under the umbrella of assurance services) include review of historical financial statements, review of financial forecasts, and examination of internal control. Diff: 1 LO: 1 Bloom: Knowledge Min: 1 AACSB: Ethics AICPA: AC: Measurement Analysis and Interpretation 3) Within a U.S. context, the applicable financial reporting framework is typically Generally Accepted Accounting Principles (GAAP). Answer: TRUE Explanation: Within a U.S. context, the applicable financial reporting framework is typically generally accepted accounting principles (GAAP). Diff: 1 LO: 2 Bloom: Knowledge Min: 1 AACSB: Ethics AICPA: AC: Measurement Analysis and Interpretation