Flashcards in chapter 5 Deck (13):
specified parties of an agreed upon procedures report
need not sign an engagement letter
A CPA is required to comply with provisions of SSAE
When compiling a client's projection that presents hypothetical course of action
when an accountant examines a financial forecast that fails to disclose several significant assumptions
Adverse opinion issued
An assertion embodied in MD&A
Consistency with the financial statement
A CPA examination report relating to WebTrust engagement include
an opinion on whether the site meets the WebTrust criteria.
evidence gathered by auditors must be both valid and relevant to be considered relevant.
in evaluating reasonableness of accounting estimate, auditor most likely would concentrate on key factors and assumptions that are
deviations from historical pattern.
when performing analytical procedure near year end, unexpected relationship existed, this result indicates that
additional test of details are required to determine whether the misstatement exists.
the objective of test of details is
to detect material misstatements in financial statement.
substantive procedures are audit procedures that
may be either tests of transactions, direct tests of financial balances or analytical tests.
after the audit is completed,
the auditor should not delete or discard audit documentation.
under the requirement of PCAOB, audit documentation should be retained for
the longer of seven years or the period required by the law.