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Becker Audit > Audit 2- Other Reports > Flashcards

Audit 2- Other Reports Flashcards

1
Q

Auditing of Single FS or Specific Elements

A

When auditing both a single financial statement or a specific element and an entity’s complete set of financial statements, the auditor can use audit evidence obtained during the audit of the complete set of financial statement sin the audit of the single financial statement or specific element.

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2
Q

Compilation & Review of Financial Statements

A

Compilation = No Assurance
Review = Limited (negative) Assurance
Both assurance & attest engagement

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3
Q

Elements of Compilation & REview Engagement

A

3 Party Relationship
Financial Reporting Framework
Financial Statements or Financial Information
Sufficient Appropriate Evidence (review only)
Written Communication or Report

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4
Q

Compilation Reporting - No Assurance

C.A.R. M.R. A.R.S.O.M.

A

C.- Compiled - state they are
A. - Audited - state they have not been
R. - Reviewed - state they have not been

M.-Management
R.- Responsibility

A. - Accountant's 
R. - Responsibility
S.- SSARS issued by AICPA - accordance with
O.- Objective of compilation: to assist
M.- Management
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5
Q

Compiled Financial Statements that Omit GAAP Disclosures are Acceptable if the:

A

FS are otherwise in conformity with GAAP
Reason for omission was not to deceive user
Compilation report warns the user of missing disclosures

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6
Q

Governing Entities for Review of Interim Financial Information

A

SAS OR PCAOB- not SSARS!

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7
Q

Attest Engagements

A

Assurance on subject matters other than basic financial statements. Engaged to issue an examination, review, compilation, or an agreed-upon procedures report on subject matter or an assertion about subject matter, that is responsibility of another party.

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8
Q

WebTrust Engagement

A

Provides assurance related to e-commerce

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9
Q

SysTrust Engagement

A

Provide assurance with respect to reliability of any defined electronic system.

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10
Q

SSAE- Statements on Standards for Attestation Engagements

Services….

A
  1. Agreed-upon procedures
  2. Financial forecasts & projects
  3. IC over financial reporting
  4. Compliances (as specific engagement)
  5. Management’s Discuss & Analysis
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11
Q

Review - Intro Paragraph

A.M.I.S.A.D.

A 
A. - Analytical procedures
M. - Management financial data
I. - Inquiry of management
S. - Substantially less in scope than
A. - Audit
D. - Does not express such opinion
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12
Q

Review - Management’s Responsibility Paragraph

S.A.L.A.

A

S.- SSARs issued by
A. - AICPA
L.- Limited
A. - Assurance

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13
Q

When should account report caveat that prospective results may not be achieved?

A

When an accountant reports on prospective financial statements.

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14
Q

Agreed-upon procedures engagement

A

Use of the report is restricted to the specified users,

Include paragraphs to discuss procedures and findings

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15
Q

Which prospective financial statement is appropriate for general use?

A

Financial forecast

NOT financial projection

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16
Q

Components of Auditor’s Report on Complete Set of FS Prepared in Accordance with Reg. Basis of Accounting

A 
Management's Responsibility - include framework
Auditor's Reponsibility
Basis for adverse on GAAP
Adverse Opinion on GAAP
Opinion on Reg. Basis of Accounting
17
Q

Reviews - Conclusion

A

Based on our review, “we are not aware of any material modifications”, “nothing came to our attention”, - negative assurance

18
Q

Examinations

A

Do provide an opinion about management’s assumptions, conformity with guidelines, etc…

19
Q

Reporting on Summary Financial Statements

A

Auditor may report if derived from FS audited by auditor and indicate:

  1. Audited and expressed opinion on complete FS
  2. Date of auditor’s report
  3. Type of opinion expressed
  4. Information contained in summary FS fairly stated in relation to complete set of FS
20
Q

What type of engagement is a review

A

Provide limited assurance

Assurance & Attest engagement

21
Q

Review Engagement: Interim FS - Understanding of IC

A

Understanding of IC is required for interim FS review engagement for nonissuers (SAS) and issuers (PCAOB).

NOT required for review when not interim FS.

22
Q

Review Engagement: Interim FS - Communication with Predecessor

A

Required for interim FS review

23
Q

11 Attestation Standards

T.I.P.P.Y. P.A.S.S.E.R.

A

General Standards
T.- Training & Proficiency
I.- Independence
P.- Performance/due professional care in planning/performance
P.- Professional, adequate knowledge of subject matter
Y.- Your belief subject matter is capable of evaluation against suitable criteria

Fieldwork Standards:

P.- Planning & Supervision
A.- Appropriate, sufficient evidence to provide reasonable basis for conclusion

Reporting Standards:

S.- Subject matter or assertion, identify, reference standards
S.- Significant reservations, disclose
E.- Express conclusions about subject matter in relation to established or stated criteria
R.- Restrict use when appropriate

Becker Audit (6 decks)

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