Deck 22 Flashcards Preview

Audit > Deck 22 > Flashcards

Flashcards in Deck 22 Deck (20):
1

Non-issuers must hold the documentation for how many years?

5

2

A firm engaged to provide attest services to the public must be owned by greater than ____% of CPAs

50%

3

Other audit partners should rotate off the audit engagement after no more than ____ years?

7 years

4

What control procedure deters lapping of collections from customers?

Segregation of duties between receiving cash and posting the AR ledger

5

Return on equity

Sales/stockholder's equity

6

Assertion related to accounts receivable being sold to a factoring agency

Rights and obligations

7

Assertion related to a company dealing with a lawsuit filed against them (contingent liability)

understandability and classification

8

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

9

Type I report on internal controls

Includes managements description of the service organizations system

10

Type II report on internal controls

Provides evidence of operating effectiveness

11

An auditor most likely would compare cash payments made after the balance sheet date with the accounts payable trial balance in searching for:

Unrecorded payables

12

The refusal of a client's attorney to provide information requested in an inquiry letter generally is considered:

A scope limitation on the audit

13

Advantage of a parallel simulation:

Sample size can be greatly expanded at relatively no additional cost

14

Permanent audit files include:

Bond indenture agreements, lease agreements, internal control flowchart

15

Monitoring component of internal control excludes:

eliminating controls that are not operating effectively

16

A list of procedures performed and findings obtained is only required for what kind of report?

Agreed-upon procedures report

17

Voucher package

- Receiving report, purchase order, and vendor's invoice
- Part of the vouchers payable department

18

What account does a debit memo reduce?

Accounts payable balance

19

What account does a credit memo reduce?

Accounts receivable balance

20

An entity's periodic accounting for the numerical sequence of shipping documents and invoices supports management's financial statement assertion of:

Completeness