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Flashcards in Financial Statement Audits Deck (29):
1

Types of Interpretive Publications

1) Appendices to the SAS
2) Auditing Interpretations of SASs
3) Auditing guidance included in the AICPA Audit and Accounting Guides
4) AICPA auditing Statements of Position

2

10 Original AICPA Auditing Standards used by the PCAOB

TID-PIE-GCDO

1) Training
2) Independence
3)Due Care

4) Planning and Supervision
5) Internal Control
6) Evidence

7) GAAP
8) Consistency
9) Disclosure
10) Opinion

3

3 Main Categories of the 10 Auditing Standards

1) General
2) Field Work
3) Reporting

4

4 Primary theme of the new clarified auditing standards

PR-PR

1) Purpose/Premise
2) Responsibilities
3) Performance
4) Reporting

5

The 7 principles of the claried auditing standards are not requirments and have no authoritative status (T/F)

True

6

Interpretive publications are not considered to be auditing standards (T/F)

True

7

Statements on Auditing Standards (SASs) constitute what?

Generally Accepted Auditing Standards (GAAS)

8

Who issues SASs

Auditing Standards Board

9

What two principals underline SASs

Materiality & Audit Risk

10

The Auditing Standards Board is part of what Organization?

American Institute of CPAs (AICPA)

11

The Auditing Standards Board promulgates what?

1) Statements on Auditing Standards (SASs)
2) Statements on Standards for Attestation Engagements (SSAE)
3) Statements on Quality Control Standards (SQCS)

12

Who governs Governmental Audits?

Government Accountability Office (GAO) with the GAGAS

13

What is the "Purpose" of the audit

Provide an opinion

14

What is the "Premise" of the audit

Management has the responsibility for
1. Financial Statements
2. Providing the auditor with information

15

What are the "Responsibilities" of an auditor?

Competence
Capabilities
Ethics
Professional Skepticism

16

What is the "Performance" standard of an audit

Same of fieldwork standards under PCAOB

17

What are the 4 main sections of a unmodified report?

1. Intro (technically has not title)
2. Management's responsibility for the Financial Statements
3. Auditor's Responsibility
4. Opinion

18

The Statements on Auditing Standards issued by the Auditing Standards board comprise what?

GAAS

19

Evidence must have what 2 qualities?

Sufficient & Appropriate

20

What two concepts are the basis for the audit?

Materiality & Audit Risk

21

2 Categories of Professional Requirments

1. Unconditional (must)
2. Presumptively Mandatory (should)

22

Six Elements of Quality Control

LEAH - EM
1. Leadership
2. Ethics
3. Acceptance/Continuance
4. HR
5. Engagement Performance
6. Monitoring

23

How often should an accounting firm get written confirmation of independence from it's staff?

Annually

24

Substantive Procedures are broken-down into what categories and sub-categories?

1. Analytical Procedures
2. Test of Details
a. Ending Balance
b. Transactions

25

Where is GAAP referenced in the Unmodified Audit Report?

1. Opinion paragraph
2. Management's Responsibilities Paragraph

26

Where is GAAS referenced in the Unmodified Audit Report?

Auditor's Responsibilities

27

SSARS stands for what and relates to what services?

Statements on Standards of Accounting and Review Services
1. Compilations
2. Reviews

28

SSAEs stands for what and relates to what services?

Statements on Standards of Attestation Engagements
- Opinion on something other than the financials

29

Level of assurance for Audit, Review, and Compliation

Audit - HIGH
Review - LOW
Compilation - NONE