Flashcards in Deck 22 Deck (20):
Non-issuers must hold the documentation for how many years?
A firm engaged to provide attest services to the public must be owned by greater than ____% of CPAs
Other audit partners should rotate off the audit engagement after no more than ____ years?
What control procedure deters lapping of collections from customers?
Segregation of duties between receiving cash and posting the AR ledger
Return on equity
Assertion related to accounts receivable being sold to a factoring agency
Rights and obligations
Assertion related to a company dealing with a lawsuit filed against them (contingent liability)
understandability and classification
An accountant's compilation report on a financial forecast should include a statement that the:
Compilation does not include evaluation of the support of the assumptions underlying the forecast
Type I report on internal controls
Includes managements description of the service organizations system
Type II report on internal controls
Provides evidence of operating effectiveness
An auditor most likely would compare cash payments made after the balance sheet date with the accounts payable trial balance in searching for:
The refusal of a client's attorney to provide information requested in an inquiry letter generally is considered:
A scope limitation on the audit
Advantage of a parallel simulation:
Sample size can be greatly expanded at relatively no additional cost
Permanent audit files include:
Bond indenture agreements, lease agreements, internal control flowchart
Monitoring component of internal control excludes:
eliminating controls that are not operating effectively
A list of procedures performed and findings obtained is only required for what kind of report?
Agreed-upon procedures report
- Receiving report, purchase order, and vendor's invoice
- Part of the vouchers payable department
What account does a debit memo reduce?
Accounts payable balance
What account does a credit memo reduce?
Accounts receivable balance