Flashcards in Deck 25 Deck (20):
When is it required to apply SSARS?
When an auditor prepares, reviews, or compiles financial statements
Assertion and procedures relating to overstatement of inventory
Existence/occurrence: inspection, vouching, observe inventory count
Assertions and procedures related to AFDA and AR
Valuation, allocation, and accuracy: recalculations/estimates, review of subsequent events
Procedures for rights and obligations
Review of subsequent events, inspection and examination, confirmation
Assertion and procedures for a lawsuit (contingent liabilities)
Procedures to test for proper cutoff
Cutoff procedures, inspection and examination
Assertions and procedures dealing with the understatement of liabilities
Completeness: tracing, review of subsequent events
When an auditor discovers the omission of an audit procedure related to a previously issued report, the auditor should first:
Assess the importance of the omitted procedures
When an accountant examines a financial forecast that fails to disclose significant assumptions used to prepare the forecast, the accountant should issue what kind of opinion?
What procedure provides evidence for the rights and obligations assertion related to fixed assets?
Vouch fixed asset acquisitions to purchase invoices
What procedure provides evidence for the completeness assertion related to accounts payable?
Examine invoices paid subsequent to year end and trace to subsidiary ledger
What procedure provides evidence for the valuation and allocation assertion related to inventory?
Examine invoices from suppliers
The auditor scanned the repairs and maintenance account for unusually large amounts. What audit procedure is necessary?
An engagement to report on compliance is considered a ______ engagement
When audited financial statements are presented in comparative form with unaudited financial statements from a prior year, the auditor should either:
Reissuer his or her report or include a separate paragraph in the current year report
In testing long-term investments, an auditor ordinarily would use analytical procedures to ascertain the reasonableness of the:
Completeness of recorded investment income
To satisfy the valuation assertion when auditing an investment accounted for by the equity method, an auditor most likely would:
Examine the audited financial statements of the investee company
Under DOL rules, independence is impaired when an auditor also serves as an:
Investment advisor to the employee benefit plan
An auditor should trace corporate stock issuances and treasury stock transactions to the:
Minutes of the board of directors