Deck 19 Flashcards Preview

Audit > Deck 19 > Flashcards

Flashcards in Deck 19 Deck (20):
1

Section 404 of SOX 202

Requires each annual report of an issuer to include management's assessment of the effectiveness of internal control over financial reporting

2

An issuer’s auditor is prohibited from providing tax services to:

Corporate officers, the audit client, or to immediate family members of corporate officers

3

Attestation services include:

Audits, special reports, and reviews

4

Direct financial interest and examples

Ownership interests held directly in a client
Ex: stock ownership, even if blind trust;
financial interest in a client or trust

5

Indirect financial interest and examples

Involves a removed relationship
Ex: own shares in a mutual fund

6

Due professional care

- Member must possess the same degree of skill commonly possessed by others in the field
- Act a reasonably prudent accountant
- Critically review work done

7

Whom may a CPA disclose client audit documentation to without consent of the client?

- For a subpoena or summons
- Peer review (quality review)
- State board
- Legal defense team

8

Receiving commission is okay for what services?

- Must be disclosed
- Compilation, advisory, and tax

9

Circumstances that impair audit evidence according to the SEC:

- Investments in audit clients
- Loans to or from an audit client

10

When is pre approval not required?

For non-audit services that do not exceed five percent of total revenues from the audit client during the fiscal year whens services are provided

11

Department of Labor (DOL)

Established guidelines for determine when a qualified public accountant is independent for the purpose of rendering an opinion on an employee benefit plan under the Employee Retirement Income Security Act of 1974

12

ERISA

Employee Retirement Income Security Act of 1974

13

Who revokes your CPA license?

State Boards of Accountancy (Not the SEC or AICPA)

14

The working trial balance generally contains a column for:

Adjustments and reclassifications

15

A list of the procedures performed and the findings obtained is required for what kind of engagement?

Agreed-upon procedures engagement

16

According to PCAOB standards, the documentation completion date is _____ days following the report release date

45 days

17

Working papers

include the procedures that are applied and the conclusions reached in an audit engagement

18

For non issuers, the documentation completion date is _____ days following the report release date

60 days (45 days for issuers)

19

Document retention for SAS and PCAOB

SAS rules: 5 years
PCAOB rules: 7 years

20

Documentation completion date for SAS and PCAOB

SAS rules: 60 days
PCAOB rules: 45 days