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Flashcards in 1 Deck (21):
1

Auditors primary role is to

Provide an independent report on the reliability of financial statments

2

General Standards 3? Hint (TID)

Training, independence, and due care

3

Field Work Standards 3?(PIE)

Planning and supervision, internal control, evidence

4

Reporting Standards 4? (GDCO)

GAAP, Disclosure, Consistency, Opinion

5

4 Themes of AICPA Auditing Standards

Purpose/Premise , responsibilities, performance, reporting

6

Unconditional auditing requirement

audiotr must comply without exception.

7

Presumptively mandatory requirement

Auditor may depart from requirement but must document the departure and how alternative procedures were performed to meet it

8

What is a CPA's collective portfolio of accounting and auditing services governed by?

Standards of Quality Control

9

Six elements of a Quality Control System?

Leadership responsibilities for quality
Relevant ethical requirements
Acceptance and continuance of client relationships
Human resources
Engagement Performance
Monitorting

10

2 Types of substantive Audit Procedures

Analytical, Test of Details

11

Analytical Substantive audit procedure?

evidence gathering procedures that suggest reasonableness based on a comparison to appropriate expectations or benchmarks

12

Test of Details

Test of ending balances: final balance is assessed by examing the composition of the year-end balance
Test of transactions: where the final balance is assessed by testing those debits and credits that caused the balance o change from last yeas audited balance

13

The first section of an auditors report?

HAs no label but identifies the nature of the engagement an dthe entitys financial statements involved

14

The second section of an auditors report:

Is labeled Managements responsibility for the financial statements

15

The third section of an auditors report:

Auditors responsibility

16

The fourth section of an auditors report:

Opinion: Expresses the auditors opinion.

17

Compilation

Engaged to assmeble the ifnancial statement fhe financial records of a private company without expressing any degree of assurance on the reliability of the FS

18

Review

Proved a lower level of assurance on FS of a private company by performing limitied procdures and performing analytical procedures and making appropriate inquiries

19

SSAE's are applicable when:

The CPA provides assurance about written representations or subject matter other than historical financial statements

20

When associated with financial subject matter, AICPA professional standards require the CPA to establish:

an understanding with the netity involved as to the services to be redered and the parties' respective responsibilities.

21

Level assurance is highest, middle, lowest at which 3? Audit , review, compilation

Audit : HIGH/Positive
REview: moderate
Compilitation: NO ASSURANCE