Flashcards in 1 Deck (21):
Auditors primary role is to
Provide an independent report on the reliability of financial statments
General Standards 3? Hint (TID)
Training, independence, and due care
Field Work Standards 3?(PIE)
Planning and supervision, internal control, evidence
Reporting Standards 4? (GDCO)
GAAP, Disclosure, Consistency, Opinion
4 Themes of AICPA Auditing Standards
Purpose/Premise , responsibilities, performance, reporting
Unconditional auditing requirement
audiotr must comply without exception.
Presumptively mandatory requirement
Auditor may depart from requirement but must document the departure and how alternative procedures were performed to meet it
What is a CPA's collective portfolio of accounting and auditing services governed by?
Standards of Quality Control
Six elements of a Quality Control System?
Leadership responsibilities for quality
Relevant ethical requirements
Acceptance and continuance of client relationships
2 Types of substantive Audit Procedures
Analytical, Test of Details
Analytical Substantive audit procedure?
evidence gathering procedures that suggest reasonableness based on a comparison to appropriate expectations or benchmarks
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
The first section of an auditors report?
HAs no label but identifies the nature of the engagement an dthe entitys financial statements involved
The second section of an auditors report:
Is labeled Managements responsibility for the financial statements
The third section of an auditors report:
The fourth section of an auditors report:
Opinion: Expresses the auditors opinion.
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
Proved a lower level of assurance on FS of a private company by performing limitied procdures and performing analytical procedures and making appropriate inquiries
SSAE's are applicable when:
The CPA provides assurance about written representations or subject matter other than historical financial statements
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.