gogo AUD Flashcards
(297 cards)
1
Q
To obtain evidence regarding control risk, an auditor selects tests from techniques including:
- calculation
- inquiry
- confirmation
- analytical procedures
A
為了獲得有關控制風險的證據，審計師選擇以下技術進行測試：
1. Inquiry of personnel.
2. Observation of operations.
3. Inspection of documents and records.
4. Reperformance of control procedures.
5. Computer-assisted audit techniques (CAATs).
2
Q
which would not be considered a relevant assertion when testing transactions and events during a client audit
- valuation, allocation and accuracy
- rights and obligations
A
[2
keywords: relevant assertion, test transactions–>cove up
NO <R></R>
Completeness
cutOff
Valuation, allocation, and accuracy
Existence and occurrence
Understandability of Presentation and classification
3
Q
the objective when an auditor decides to employ classical variable sample
- to determine the reliability of voucher processing
- to determine the inventory quantities on hand
A
[2
keyword:
variable sample–>quantity/error rate
attribute sample–>reliability
4
Q
which would be used to estimate a numerical measurement of a population, such as a dollar value?
1. variable sample
2. attribute sample
A
[1
variable-numerical
attribute- evaluation
5
Q
the primary reason the auditor hesitates to use embedded audit modules?
1. auditors are required to be involved I the system design of the application to be monitored
2. embedded audit modules cannot be protected from computer viruses
A
[1
嵌入式審計模組是應用程式程式碼的一部分，用於為審計員收集交易資料。 嵌入式審計模組通常在應用程式開發時內建於應用程式中。 這將要求審計員參與要監控的應用程式的系統設計。
6
Q
auditor believed not to be materially misstated based on an audit sample was materially misstated based on the total population of the account balance. this is what type of the sampling types of risks?
- incorrect acceptance
- incorrect rejection
A
[1
1. incorrect acceptance: 認為沒有錯，而導致誤判
2. incorrect rejection: 認為數據有錯而導致誤判
7
Q
auditor should inquire who about risk of fraud within the entity?
1. management, internal audit, and committee
2. management, sales department head, and audit committess
A
[1
經理
中（企業中的會計師）
委員會
8
Q
identifying related party transactions
1. sending second requests for unanswered positive confirmations of accounts receivable
2. Review accounting records for nonrecurring transactions recognized near the balance sheet date.
A
[2
9
Q
which is true?
1. if the assessed level of fraud risk is high, the auditor should attempt to reduce detection risk
2. fraud risk is comprised of the risk of material misstatement detection risk
A
[1
audit risk(not fraud risk) is comprised of the risk of material misstatement and detection risk
10
Q
which cannot help the auditor in evaluating the risk of improper revenue recognition due to fraud?
1. analysis of sales commissions over the most recent five year period
2. comparison of revenue reported by month and by product line for the current and prior years.
A
[1
1. revenue 不是影響因素，而是結果
2.使用分類收入資料的分析程序可能表示存在欺詐行為的異常關係
11
Q
the risk of material misstatement is inversely related to?
1. detection risk
2. substantive testing
A
[1
substantive testing will increase if the risk of material misstatement increased
DM是一對相反，Dfor detection， Mformaterial
重大不合規風險是指存在未被發現的重大偏差或不合規的可能性。 不合規檢測風險是指審計程序未能偵測到這些偏差的風險。
簡而言之，如果重大不合規的風險很高，審計師就會降低對偵測風險的接受度（即，他們希望降低遺漏某些內容的可能性），反之亦然。 因此，當其中一個較高時，另一個通常會設定較低以進行補償，從而使它們成反比。
12
Q
test all merchandise received is recorded, should use?
1. receiving reports
2. vendor’s invoices
A
[1
2–> the goods have not been received also has invoices
13
Q
management’s refusal to allow an auditor to perform external confirmation procedures is considered a departure from GAAP sufficient to qualify the opinion.
why incorrect?
A
depart from GAAS, sufficient to qualify the opinion.
GAAS 涉及審計師在進行審計時遵循的標準和程序（審計的時候），而 GAAP 涉及編制財務報表時所使用的會計原則（公司在製作財務報表的時候）。
當管理層施加此類限制時，就會限制審計師獲取充分、適當的審計證據的能力，並可能因這種範圍限製而導致提出保留意見。所以違反的是GAAS
14
Q
why negative confirmation of accounts receivable is less effective than positive confirmation of account?
1. the auditor cannot infer that all nonrespondents have verified their account information
2. a majority of recipients usually lack the willingness to respond objectively.
A
[1
應收帳款的否定確認涉及向客戶發送請求，要求他們僅在不同意所聲明的帳戶餘額時回應。 如果沒有回應，審計員就會認為餘額是正確的。
問題是，缺乏回應可能是由於除與餘額一致之外的各種原因造成的（例如，確認可能已遺失、被忽視或忽略）。 因此，在否定確認的情況下，審計師無法推斷所有非受訪者都已驗證其帳戶資訊。 這使得它不如積極確認結論性和有效，積極確認需要明確的回應來確認平衡，從而提供更明確的證據。
15
Q
communication of significant deficiencies and material weakness must include restricted use of language.
why incorrect?
A
in an integrated audit for a nonissue, no restriction is required. restricted use language only when part of an audit of the financial statements.
16
Q
communication of significant deficiencies and material weaknesses must be made by the report release date.
T or F?
A
[T
The statement is generally accurate. According to auditing standards, the communication of significant deficiencies and material weaknesses identified during an audit should be made in writing to those charged with governance (typically the board of directors or audit committee) by the report release date. The report release date is the date the auditor grants the client permission to use the audit report in conjunction with the financial statements. This timely communication ensures that the responsible parties are made aware of the issues and can take necessary corrective actions.
17
Q
to gain assurance that all inventory items in a client’s inventory listing schedule are valid, an auditor most likely would trace:
existence/ value
- items listed in receiving reports and vendor’s invoices to the inventory listing
- items in the inventory listing to inventory tags and the auditor’s recorded count sheets.
A
existence(vouch)
<2>
however, the term trace is sometimes used interchangeably with the term vouch
18
Q
by ensuring that all required disclosures related to property, plant, and equipment are adequately disclosed in the footnote, the auditor would be testing what assertions?
1. completeness
2. understandability of presentation and classification
A
[1
2–> Read all required disclosures for understandability and relevance
19
Q
to identify the fictitious sales, what should the auditor do?
1. select a sample of entries in the sales journal and trace to the related sales invoices
2. select a sample of sales invoices and trace to the related shipping documents.
A
[2
sales jornal and sals invoices 可以造假
20
Q
which is incorrect?
1. perform control testing around the cash disbursement process
2. omit substantially all of the disclosures required by generally accepted accounting principles
A
[1
21
Q
to test the existence assertion of PP&E
1. obtaining a detailed fixed-asset register and ensuring depreciation methods are applied consistently
2. obtaining a listing of all current-year additions, vouching significant additions to original invoices, and determining that they have been placed in service.
A
[2
1–> tests the valuation, allocation, and accuracy assertion
22
Q
conceptual difference between the attestation standards and generally accepted auditing standards
1. the requirement that the practitioner be independent is omitted from the attestation standards
2. the attestation standards provide a framework for the attest function beyond financial statements
A
[2
認證標準與公認審計標準之間的概念差異
1.認證標準中省略了從業人員獨立性的要求
2. 鑑證準則為財務報表以外的鑑證職能提供了一個框架
23
Q
assertion related to the audit objective that verifies all sales have been recorded?
1. cuttoff
2. completeness
A
[2
24
Q
the purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the:
1. human resources function from the cotrollership function
2. authorization of transactions from the custody of related assets.
A
[2
25
(cost) use what audit procedure
1. traced and agreed to supporting invoice
2. agreed amount to the subsidiary ledger
[1
26
at the year end, a major customer field for bankruptcy.
adjusting journal entry
dr: operating expense(bad debt expense)
cr: allowance for doubtful account
27
which will least affect the nature and extent of audit documentation?
1. the content of the representation letter
2. the nature of the specific audit procedures
[1
審計文件通常包括所執行的程序、所獲得的證據以及審計員得出的結論的記錄。 雖然陳述函（審計結束時管理層給審計師的一封信）是重要的審計證據，但這封信的內容通常不會影響審計師在審計期間產生的文件數量或類型。 相反，陳述信提供了管理階層對各種事項的書面主張。
另一方面，具體審計程序的性質直接決定了收集哪些證據，從而決定要記錄哪些內容。 不同的程序會產生不同類型和數量的證據，因此它們對審計文件的性質和範圍有直接影響。
28
which computer-assisted auditing techniques process client input data on a controlled program under the auditor's control to test controls in the computer system?
1. parallel simulation
2. test data
[1
parallel simulation is a technique in which the auditor reprocessed the client's data using the auditor's own software. the auditor then compares his or her results to those obtained by the client
parallel VS integrated
數據性質：平行模擬使用實際客戶數據，而ITF使用插入客戶系統的虛構數據。
與客戶操作的整合：ITF交易作為客戶正常運營的一部分進行處理，而平行模擬則獨立進行。
重點：平行模擬專注於數據處理的準確性，而ITF還評估系統內部控制的有效性。
干擾：平行模擬對客戶的日常運營干擾較小，因為它是獨立進行的，而ITF在實際運營期間整合到客戶系統中。
29
according to PCAOB, the relevance of audit evidence depends on all of the following except:
1. the circumstances under which the audit evidence is gathered
2. the timing of the audit procedure
3. whether the audit procedure is designed to test for an understatement or overstatement
4. the auditor's risk assessment
<1,4>
1--> related to the reliability of evidence
4--> Risk assessment affects the nature, extent, and timing of audit procedures
30
an antity prepares F/S on its income tax basis. a description of how that basis differs from GAAP should be included in the:
1. emphasis-of-matter paragraph of the auditor's report
2. notes to the financial statements
[2
the emphasis-of-matter should [refernce) the note that explains how the basis differs from GAAP, but does not include a [description) of how the other comprehensive basis of accounting differs from GAAP
31
equipment acquisitions that are misclassified as maintenance expense most likely would be detected by an internal control activity that provides for:
1. independent verification of invoices for disbursements recorded as equipment acquisitions,
2. invenstigation of variances within a formal budgering system
[2
Examining invoices for disbursements recorded as maintenance expenses would include:
1.Verifying the vendor details.
2.Checking the date and amount.
3.Reviewing the description of services or goods provided.
4.Ensuring proper authorization and approval.
5.Comparing with budgeted or expected maintenance costs.
6.Confirming the allocation to the correct account code or category.
7.Detecting any inconsistencies or anomalies.
2) is included in the 5.
32
describes a weakness in A/P procedures
1. the A/P manager issuer purchase orders
2. the A/P payable system compares the receiving report to the vendor invoice
[1
1-->purvhase order should be issued by the purchasing department
2-->account payable department: compared the purchase order, receiving report and vendor invoice
33
the accompanying projection is present in conformity with guidelines for the presentation of a projection established by the Public Company Accounting Oversight board.
T or F?
[F
該聲明「附帶的預測是根據公眾公司會計監督委員會（PCAOB）為預測的呈現制定的指南而呈現的」不太可能包含在對財務預測的審查報告中，因為根據我在2022年1月的最後更新，PCAOB尚未為財務預測的呈現制定特定指南。
PCAOB主要監督公眾公司的審計，以確保財務報表和相關審計報告的準確性和完整性。他們的主要職責不是關於制定或呈現前瞻性的財務預測。
包含這樣的聲明可能會產生誤導，這意味著對於預測，PCAOB有特定的標準，但根據我的最後更新，事實上並沒有。如果財務報表的使用者認為PCAOB有這些預測的指南，他們可能會過分依賴它們。
34
the work of a management specialist who has a contractual relationship with the client may be acceptable under certain circumstances.
T of F
[T
Yes, auditors sometimes rely on the work of a management's specialist when auditing financial statements, especially when evaluating complex areas that require specific expertise. A management specialist is an individual or organization possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist in preparing the financial statements.
However, the use of a management specialist who has a contractual relationship with the client is acceptable under certain conditions:
1.Competence and Objectivity
2.Nature and Scope
3.Work Evaluation
4.Assumptions and Methods
5.Consistency with Other Evidence
6.Disclosure
35
which will not perform during an engagement of review?
1. comparing the financial statements wirh anticipated results in budgets and forecasts
2. obsercing the safeguards over access to and use of assets and records.
<2>
During a review of financial statements for a nonissuer, the focus is on limited assurance using mainly analytical procedures and inquiries, not detailed testing. Observing safeguards over assets and records is a thorough procedure typical of audits, not reviews. So, in a review, this observation is less likely because it's beyond the review's basic scope and purpose.
36
which is required in exercising due care?
1. consulting with experts
2. obtaining specialty accreditation
<1>
exercise of due care dictates consultation or referral when a professional engagement exceeds the CPA's personal competence. 當專業參與超出註冊會計師的個人能力時，應採取應有的謹慎態度進行諮詢或轉介。
due care應有的注意
37
the auditor assesses control risk because it:
1. affects the level of detection risk that the auditor may accept
2. is relevant to the auditor's understanding of the control environment
[1
Control Risk is the risk that a misstatement could occur and not be prevented or detected on a timely basis by the client's internal controls.
可能發生錯誤且客戶的內部控制無法及時預防或發現的風險。
Detection Risk is the risk that the auditor's procedures will fail to detect a misstatement.審計師的程序無法偵測到錯誤的風險。
如果審計師評估控制風險較高（意味著內部控制可能無法發現錯誤或詐欺），他們通常會接受較低程度的偵測風險來進行補償。 這意味著他們將進行更多實質測試，以確保發現任何潛在的錯誤陳述。 相反，如果控制風險被評估為低（強有力的內部控制），審計師可能會接受較高的檢測風險，並可能減少實質測試的程度。
38
accounting records alone provide sufficient support for an audit opinion.
T or F?
39
accounting records consist of records of initial journal entries and any supporting records.
T or F?
40
accounting estimates should be used when data concerning past events can be accumulated in a timely, cost-effective manner.
T or F?
Accounting estimates are used when the exact amount of a transaction is not known and cannot be determined with certainty. They are approximations or judgments that management makes, based on the best information available at that time, to assign a value to an accounting item when it cannot be precisely measured.
會計估計是對不確定的值或金額的教育性猜測。當無法確定確切的金額時，就會做這種猜測，因為在編製財務報表時無法確定確切的金額。
該說明建議在可以輕易且低成本地收集過去事件的數據時使用估計。但這有點誤導。如果您可以輕鬆且低成本地收集數據，您通常不需要估計；您只需要使用實際的數據。
使用會計估計的主要原因是當確切的數據並不容易獲得，或者它不切實際或太昂貴以至於無法獲得。例如，如果公司認為客戶可能不支付他們的賬單，他們將估計他們認為不會被支付的賬單的部分。這是因為他們在未來不能知道確切的數量，但他們仍然需要現在報告他們的最佳猜測。
Examples of accounting estimates include:
Allowance for doubtful accounts
Depreciation methods and useful lives
Provisions for lawsuits or litigations
Estimated warranty expenses
41
which would perform in the planning stage of a F/S audit?
1. compare recorded financial information with anticipated results from budgets and forecasts
2. communicate with those charged with governance concerning the prior year's audit adjustments.
<1>
2--> not all of those charged with governance are not also involved with managing the entity, the auditor is required to communicate with those charged with governance concerning adjustments arising from the current year's audit, not adjustments from the previous year.
42
the audited firm is privately held and the auditor provides valuation and appraisal services to an audit client, the results of which are material to the financial statements
independence impair or not
independence impair
43
which is correct?
1. the auditor is required to communicate all deficiencies in internal control to management, and deficiencies that constitute a significant deficiency or a material weakness to management and the audit committee.
2. the auditor is not required to communicate control deficiencies or significant deficiencies to management or the audit committee but must communicate material weakness to both management and the audit committee
<1>
44
to confirm the accounts receivable balance
1. copies of the client's shipping documents that support the account balances
2. client-prepared statement of account that show the details of the account balance
<2>
2-->Client-prepared statements of account that show the details of the account balances.
This answer is correct because when client-prepared statements of account show details of account balances, it is likely that customers will be able to reply regardless of whether they maintain their payable records by invoice or month-end balance.
45
the purpose of tracing a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal is:
1. determine that the purchases were properly recorded
2. verify that cash disbursements were for goods actually received
<1>
source document-->finacial records
tracing up
expenses/ liabilities
2--> Vouch back
46
financial statements of a nonissuer compiled without audit or review by an accountant should be accompanied by a report stating that:
1. the accountant has not audited or reviewed the financial statements
2. the scope of the accountant's procedures has not been restricted in testing the financial information that is the representation of management.
<1>
1-->has not audit or review
2-->has not been restricted
47
an overall response to address a high-assessed risk of material misstatement at the financial statement level of a nonissuer may include:
1. providing more supervision of the audit team
2. incorporating additional predictability into the selection of procedures
<1>
1-->This is like having a teacher closely watch students during a test to make sure they're doing it right.
2--> Unpredictability into the selection of procedures. This is like occasionally giving surprise quizzes so students can't just prepare for expected test dates.
48
an auditor's working trail balance generally contains columns for:
1. reclassifications and adjustments
2. accruals and deferrals
<1>
2--> included within audit documentation, but would not necessarily be shown in columns on the working trail balance. Accruals and deferrals are specific types of accounting adjustments, but the columns in an auditor's working trial balance are typically more general to capture all potential adjustments, not just those limited to accruals and deferrals.
49
development of audit programs are part of a review procude.
T or F?
50
in auditing an entity's computerized payroll transactions, an auditor would be least likely to test data to test controls concerning:
1. control and distribution of unclaimed checks
2. missing employee identification numbers
<1>
在審計實體的電腦化薪資交易時，審計師最不可能測試資料來測試以下方面的控制：
1. 無人認領支票的控制與分配
2. 缺少員工身分證號碼
在這兩個選項之間，#1（無人認領支票的控制和分配）與「電腦化薪資交易」的直接關係較小。 無人認領支票的處理通常與實體控制流程更相關（例如，支票如何儲存或在充公前保留多長時間），而不是電腦系統的處理。
因此，在測試專門涉及電腦化薪資交易的控制措施時，審計師最不可能測試有關無人認領支票的控制和分配的資料。
51
analytical procedures are required for:
1. internal control evaluation
2. audit planning
<2>
analytical procedures:
T.R.A.C.E.R.B.N.
Trend Analysis
Ratio Analysis
Actual vs. Budget
Cross-sectional Analysis
Estimations (Reasonableness Testing)
Regression Analysis
Benchmarks (comparisons with industry metrics)
Non-financial Analysis
52
which factor most likely would lead a CPA to conclude that a potential audit engagement should be rejected?
1. management has a reputation for consulting with
several accounting firms about significant accounting issues
2. It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements.
<2>
While management consulting with several accounting firms about significant accounting issues might raise concerns about "opinion shopping" (seeking the firm that will give the most favorable treatment), it doesn't automatically disqualify an engagement. However, it's a red flag that warrants further inquiry.雖然管理層就重大會計問題向多家會計師事務所提供諮詢可能會引起人們對「意見購買」（尋求給予最優惠待遇的公司）的擔憂，但這並不會自動取消參與的資格。 然而，這是一個值得進一步調查的危險訊號。
If it is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements, this is a fundamental issue. The primary purpose of an audit is to obtain sufficient appropriate evidence to express an opinion on the financial statements. Without this evidence, the auditor cannot fulfill their primary responsibility.如果不可能有足夠、適當的證據來支持對財務報表的意見，那麼這就是一個根本問題。 審計的主要目的是取得充分、適當的證據以對財務報表發表意見。 如果沒有這些證據，審計師就無法履行其主要職責。
53
which is correct?
1. all significant deficiencies are material weaknesses
2. all material weaknesses are significant deficiencies
<2>
deficiencies< weakness（26個英文字母W 次序位於D的後面，所以weakness嚴重性比較大)
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company's financial reporting.一個重要缺陷是內部控制中的缺陷，或多個缺陷的組合，其嚴重程度低於厳重弱點，但足夠重要，值得負責監督公司財務報告的人關注。
A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented or detected and corrected on a timely basis.一個厳重弱點是內部控制中的缺陷，或多個缺陷的組合，因此存在合理的可能性，實體的財務報表中的重大誤報不會被及時防止或檢測並及時糾正。
54
Control activities over safeguarding of accets may include controls relating to
1. the financial report objective
2. operations objectives
3. compliance objective
<1,2>
In simple terms: Think of safeguarding assets as locking up a bike. Locking the bike ensures it's there when you need it (Operational Objective) and that its value is correctly represented if you wanted to sell it (Financial Report Objective). But whether you're allowed to park the bike in certain areas, or the rules for riding it on streets, are separate issues (Compliance Objective). Locking up the bike won't necessarily help with those other rules.可以將保護資產想像為鎖自行車。鎖住自行車確保您需要時它在那裡（運營目標）並且如果您想賣它，其價值被正確代表（財務報告目標）。但是您是否允許將自行車停在某些區域，或騎它在街道上的規則，是單獨的問題（合規目標）。鎖自行車不一定有助於那些其他規則。
55
Financial statement as sessions include:
1. Valuation, Location, and accuracy; completeness, and understandability of presentation and classification
2. Understandability of presentation and classification; independence, integrity, and objectivity; and rights and obligations.
<1>
coveup
NO R(right and obligations)
56
Satisfied mean per unit sampling statistical technique that may be more efficient than unstratified into you because it usually:
1. increase the variability items in a stratum by grouping sample units with similar characteristics
2. procedures an estimate having a desired level of precision with a small sample size.
<2>
1--> stratified sampling reduces the variability amount items in a stratum
57
In performing a search for unrecorded retirements for fixed assets:
1. analyze the repair maintenance account, and then tour client's facilities
2. inspect the property ledger and the insurance and tax records, and then tour the client's facilities.
<2>
1--> is used to identifying transactions that should have been capitalized versus expensed. (unrecorded addition)
58
doubt about ability to continue as a going concern and report disclosure was adequate. the accountant should:
1. may, what is not required to include and emphasize of matter paragraph
2. Should withdraw from the engagement
<1>
59
sanctions may be imposed by the PCAOB.
1. finacial penalties
2. suspension or revocation of PCAOB registration
3. required continuing professional education courses.
<1,2,3>
Mnemonic:
"FSPC."
F for Financial penalties.經濟處罰。
S for Suspension.暫停。
P for revocation of PCAOB registration.撤銷 PCAOB 註冊。
C for required CPE courses.
60
Which would be performed in the planning phase of the financial statement audit?
1. Make inquiries of a client's lawyer concerning pending litigation
2. Compare financial information with non-financial operating data
<2>
1--> should be done in regarding contingencies
U.R.T.G.P.
U for Understand the Business
R for Risk Assessment
T for Talk to Management
G for Gather Previous Audit Info
P for Preliminary Analytical Procedures & Decide Resources
To make it memorable, you can think of it as:
"U R The Great Planner!"
61
1. deadline for completion of all the documentation of a nonissuer/issuer
2. required retention period under PCAOB
3. required retention period under SAS for nonissuers
1. 60/45 days after the report release date
2. 7years
3. 5years
62
In assessing her objectivity of internal auditors, but independent, a CPA who is auditing entities, financial statement is most likely would consider the
1. the internal auditing standards developed by the Institute of Internal Auditors
2. Test of control activities that would detect errors and fraud.
<1>
2--> validate the effectiveness of the controls.
當註冊會計師（CPA）審計一個實體的財務報表並評估內部審計員的客觀性時，最相關的因素是：
1. 由內部審計師協會（IIA）制定的內部審計標準。
這些標準非常重要，因為它們為內部審計的專業實踐提供了框架，並包括了獨立性、客觀性和適當專業關懷等屬性。註冊會計師可能會評估內部審計員是否遵守這些標準，這將影響註冊會計師對其客觀性和可靠性的判斷。
測試能夠檢測錯誤和欺詐的控制活動（選項2）在審計中也很重要，但它主要關注於實體內部控制系統的有效性，而不是直接評估內部審計員的客觀性。因此，對於特別評估內部審計員的客觀性而言，由內部審計師協會制定的內部審計標準將是最相關的因素。
63
In auditing a client's retained earnings account, an auditor should determine whether there are any restrictions on retained earnings that we sold from loans, agreements, or state law. this procedure is designed to corroborate management's financial statement of assertions with respect to:
1. understandability of presentation and classification.
2. audit risk and materiality
<1>
In simple terms: Think of auditing like a medical check-up. When the doctor is checking your blood pressure, they're focused on getting that specific reading accurately. While they're aware of overall health risks (like the audit risks) and the importance of certain readings (materiality), in that moment, their primary concern is to ensure the blood pressure reading is accurate and understandable.
64
which of the following controls most likely would help ensure that all credit sales transaction of an entity are recorded?
1. Accounting department supervisor independent reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly
2. The billing department supervisor sent copies of approved sales orders to the credit department for comparison to authorize credit limits and current customer account balances
<1>
2-->ensuring sales are made within authorized credit limits.
65
Which off the following controls would be most effective in assuring that recorded portrait purchases are free of material errors？
1. purchase orders, receiving reports, and vendor's invoices are independently matched in preparing vouchers.
2. vendor's invoices are comprared with purchase orders by an employee who is independent of the receiving department
<1>
第一個控制通常更有效，確保記錄的購買免於重大錯誤。通過匹配三個關鍵文件，它提供了更全面的檢查，確保公司不僅訂購和開具賬單的項目相同，而且實際上也收到了。這三方匹配減少了多付或未收到商品的付款的風險。第二個控制是好的，但範圍較小，因為它只涉及兩方匹配。
66
The element of all the planning process most likely to be agreed-upon with the client before implementation of the audit strategy is the determination of
1. the timing of inventory observation procedures to be performed.
2. pending legal matters to be included in the inquiry of the client's attorney
<1>
1-->When auditors plan an audit, they need to set a date to physically check the client's inventory. This date needs to be agreed upon in advance with the client to make sure everyone is prepared.
2-->while legal matters don't have a specific "date" to be scheduled like the inventory observation.
67
When an auditor concurrence with a change in accounting principle, what should be changed in audit report?
Add an emphasize of matter Paragraph.
68
which is not pertain to the control environment?
1. management's philosophy and operating style
2. the accounting recorcds
<2>
the control environment includes:
1. communication and enforcement of integrity and ethical value
2. commitment to competence
3. participation of those charged with governance
4. organizational structure
5. management's philosophy and operating style
6. assignment of authority, responsibility, and accountability
7. human resource policies and practices
**Title: "The Integrity Ship's Journey"**
In a land of corporations, the "Integrity Ship" stood out for its governance and ethics. Captain Ethos led with a strong moral compass, emphasizing integrity and ethical behavior. First Mate Competent ensured crew skills and knowledge. The Steering Committee, with experienced sailors, provided oversight and participated in decisions. The ship had a clear structure; each role was well-defined, mirroring the company's organizational structure. Captain Ethos and his officers managed with a collaborative, cautious style. The Quartermaster, Mr. Responsible, assigned clear duties and accountability. Lastly, Ms. HR managed human resources, ensuring fair practices and crew welfare. Each element of Integrity Ship's journey represents a component of the control environment.
Now, let's translate this into Traditional Chinese:
**標題：「誠信號的旅程」**
在一片公司林立的土地上，「誠信號」以其治理和道德標準脫穎而出。船長Ethos以堅定的道德指南針領導，強調<誠信和道德>行為。大副Competent確保船員具<備技能和知識>。由經驗豐富的水手組成的指導委員會提供監督並<參與決策>。這艘船擁有清晰的結構；每個角色都被明確定義，反映了公司的<組織結構>。Ethos船長和他的官員們採用合作、謹慎的<管理風格>。軍需官Mr. Responsible分配清晰的<職責和責任>。最後，Ms. HR管理<人力資源>，確保公平的實踐和船員福祉。誠信號的每一個旅程元素都代表了<控制環境>的一個組成部分。
69
which if not a primary characteristic associated with audit risk?
1. it is a risk that the auditor may fail to detect a client's deceptive practices which may result in a misstatement of the financial statements.
2. audit risk arises because the auditor obtains only reasonable assurance that the client's financial statements are not materially misstated.
<1>
deceptive practices 詐欺行為
1--> fraud risk not audit risk
70
If an auditor checks a company's equipment value in the middle of the year without looking at how well the company's systems prevent mistakes, what extra work do they need to do to make sure the value is still right at the end of the year?
1. Substantive procedures for the pay rate between the interim date and the balance sheet date
2. Test of controls for the period between the beginning of the physical year and the interim date
<1>
將審計結論從中期日延伸至資產負債表日是審計的標準做法。 當審計師在中期日期進行測試時，他們需要考慮從該日期到年終的期間，以確保截至年終日期的財務報表也得到公允列報。
71
A primary advantage of using generalized audit software packages
1. Assess information stored on computer files while having a limited understanding of the client's hardware and software features
2. Substantive the currency of data through self-checking digits and hash totals
<1>
1--> Check Client's Computer Data Easily
2-->Ensure Data Accuracy
72
there is reasonable justification for the change from engagement to a review, the accountants review report should include reference to
1. Scope limitigation that cause the change engagement
2. Original engagement that was agree to
no-no
If the accountant concludes that there is reasonable justification to change the engagement, accountants or original engagement report, should not include reference to the original engagement to any audit process produced that may have been performed or through the scope limitation that resulted in the changed engagement
73
which is correct
1. in order to test existence as sessions an auditor may select a sample of items and trace from their corresponding source documentation to corresponding account records
2. In order to ensure that an asset has not been overstated an auditor may wanted to vouch to source documentation
<2>
1--> from financial statement records to source documentation
Existence = Top-Down (Is what's claimed actually there?)
Completeness = Bottom-Up (Did everything get recorded?)
74
A senior auditor conducted a dual-purpose test on a client's invoice to determine whether the invoice was approved and asserttion the amount and other terms of the invoice.
what should the auditor performed?
1. substantive procedures and analytical procedures
2. tests of controls and test of details
<2>
The senior auditor checked a client's invoice for two reasons:
1.To see if it was approved.-->test of control
2. To make sure the details and amount on the invoice were correct.--> test of detail
75
a company over state it's cash position by wire transaction. How should the auditor detect this error?
1. Performing monthly reconciliation of all banks accounts
2. Requiring internal auditors to perform analytical procedures on cash balance
<1>
2--> the timing of cash payments and receives can vary period to period causing variability
76
in connection with an auditor of a non-inssuer auditor,an auditor would ordinarily use an engagement letter to:
1. assert that a properly planned audit will detect and identify all material misstatements.
2. specify any arrangements concerning the involvement of the company's internal auditors on the audit
<2>
Here's the translation into traditional Chinese:
委託書是一份正式文件，定義審計師和客戶之間的協議，概述審計工作的範疇、雙方的責任，以及有關審計任務的其他相關詳情。
在這兩個選項中：
委託書通常不會“聲稱一個妥善計劃的審計將檢測並識別所有重大錯誤”。由於固有的限制，沒有審計可以提供檢測所有重大錯誤的絕對保證，審計師非常小心不要過度承諾。
委託書可能“指定有關公司內部審計師參與審計的任何安排”。這是委託書的更典型組件。它將詳細說明內部審計師如何協助或外部審計師可能依賴他們工作的哪些領域，確保角色和責任的清晰性。
因此，在所提供的選項中，委託書的更精確目的是：
指定有關公司內部審計師參與審計的任何安排。
77
Least assurance about the operating effectiveness of the control activity:
1. inquiry of client personnel
2. preparation of system flowcharts
<2>
1--> inquiry, inspection, observation are all test may be used to evaluate the operating effectiveness of a control
78
find out subsequent events
1. Perform a search for and recorded liabilities
2. Review client bank reconciliations
3. Review management representation letter
<3>
79
the best definition of control risk:
1. the risk of detecting misstatements that are material to the MD&A presentation taken as a whole
2. the risk that material misstatement in the MD&A presentation will not be prevented in a timely manner
<2>
1--> both intentional and unintentional
80
an auditor likely would add an other-matter paragraph when:
1. current period financial statements are audited and presented in comparative form with reviewed financial statements from the prior period.
2. the auditor concludes that substantial doubt remains about the entity's ability to continues as a going concern for a reasonable amount of time.
<1>
不太重要
Think of them as "Outside and Beyond" the core financial statements.
DRIP
1. Different Years, Different Checks前一年沒有呈現的，下一年要表現
2. Report Outside the Financials
3. important Changes in Accounting Methods
4. Prior Info Presented Differently: 先前資訊的呈現方式不同
2-->emphasis-of-matter paragraph
. 強調重要
Think of them as drawing attention to "Specific Points Within" the financial statements.
GLUC
1. Going Concern Issues
2. Lawsuits
3. Unusual Transactions
4. comparative figures(Major Events After Year-End)
81
which would be more reliable?
1. Bank confirmation receipt from the client
2. Accounts receivable confirmation sent directly to the auditor.
<2>
2--> and accounts receivable confirmation that is send out by the auditor, and received back from the customer is the most valid evidence obtained
82
the group auditor decides not to refer to the component of the auditor, who audited a subsidiary of the group auditors. Client investigation. The group auditor most likely would:
1. Determines the type of work to be performed by the group auditor on the financial information of the component
2. Add an emphasis of matter-paragraph to the auditor's report, indicating the subsidiary's financial statements are not material to the consolidated to financial statement
<1>
1-->In audit terms, this means that if the main auditor (group auditor) decides not to mention the work of the other auditor (component auditor) on a subsidiary, they need to decide how closely they'll check that work and if they need to do any extra work themselves on that subsidiary's financial info.
2--> not a typical reason to add an emphasis-of-matter paragraph
DRIP
1. Different Years, Different Checks
2. Report Outside the Financials
3. Important changes in Accounting Methods: Changes in accounting policies or methods that are significant but do not affect the current period's financial statements would be mentioned in this section.
4. Prior Info Presented Differently: 先前資訊的呈現方式不同
. GLUC
1. Going Concern Issues
2. Lawsuits
3. Unusual Transactions
4. comparative figures(Major Events After Year-End)
5. change in accounting principle have materially affect the financial statements
**subsequently discovered fact lead to change in audit opinion may present in both!
83
what would use variables sampling?
1. discover whether misstatements exist in inventory records
2. estimate whether the dollar amount of inventory is reasonable
<2>
V in VA (Variable) is about Value or amounts.
A in VA (Attribute) is about specific Attributes or characteristics or yes/no answers.
84
which factor would consider in evaluating the control environment for an audit client?
1. organizational structure used for tax purposes
2. the ethical values demonstrated by management
<２＞
在評估審計客戶的控制環境時，需要考慮的因素是：
**2. 管理階層展現的道德價值。**
控制環境包含組織高層的基調，包括管理階層對道德價值、誠信的承諾、對內部控制的重視。 管理階層的道德價值和行為在設定組織的整體基調和文化方面發揮著至關重要的作用，而這反過來又能顯著影響內部控制的有效性。
另一方面，在評估審計客戶的控制環境時，用於稅務目的的組織結構（選項 1）並不是主要因素。 它更多地涉及稅務規劃和合規性，這是組織運營的一個獨立方面。
85
what would use attribute sampling?
1. selecting receivables for confirmation of account balance
2. identifying entries posted to incorrect accounts
<2>
Selecting receivables for confirmation of account balance:
1. This is about verifying a specific value or amount, not about checking for a specific characteristic. Thus, it aligns more with variable sampling.
Identifying entries posted to incorrect accounts:
2. This aligns with attribute sampling. The auditor is checking whether an entry has the attribute of being correctly posted (yes or no). If it's incorrectly posted, then it possesses the attribute being tested for.
V in VA (Variable) is about Value or amounts.
A in VA (Attribute) is about specific Attributes or characteristics or yes/no answers.具體屬性或特徵或是/否答案
86
An auditor to obtain an initial understanding of internal control, sufficient to assess the result of material misstatement of the financial statements an auditor would most likely perform which of the following procedures?
1. Analytical procedures to determine the need of specific controls
2. Risk assessment procedures to evaluate the design of relevant controls
<2>
1-->
This is like looking at the neighborhood's crime statistics. It might tell you if there's a lot of crime, but it won't directly show you how secure this specific house is.
2-->
This is like walking around the house, checking if windows and doors lock properly and if there's a security alarm. You're directly assessing how well the house is protected.
87
which would not lead the auditor to assess inherent risk at a high level?
1. The company has elected to convert their invention costing method from LIFO to FIFO
2. The company has made substantial revisions to their credit policy, allowing for more customers to qualify for financing out of large purchases. The result has been earth 45% increase in revenue.
<1>
1--> one time thing
88
which type of evidence would be most reliable?
1. analytical procedures
2. confirmation of account information
<2>
1--> Analytical procedures provide for auditor with direct personal knowledge, but because this procedure is often based on internal accounting data for evidence obtained, is not as reliable as that obtained from confirmations
89
What would be included in planning of financial statement audit?
1. determine the extent of involvement of the client's internal auditors
2. scan the client's journal and lectures to identify any unusual transactions
<1>
2-->the auditor is likely to scan the client's journals and managers to identify any unusual transactions after the planning stage
90
what's the audit purpose most directly served by obtaining an understanding of an entity?
1. to assist the auditor accurately interpret information obtained during an audit
2. to enable the auditor to accurately identify significant deficiencies
<1>
1-->This is like you understanding how each toy should look.
2-->This is like you trying to find the big problems in the toys.
91
When you test the internal controls are for a computerized accounting system, which is true of the test data approach?
1. Test later a process with the clients computer and the results are compared with the auditors pre-determined results
2. test data are coded to a dummy subsidiary so they can be extracted from the system under actual operating conditions
<1>
測試資料方法是指使用客戶端的應用程式來處理一組測試資料的技術。 其結果已由審核員完成。 如果客戶程序有效運行，則應產生相同的結果，由審計員決定。
2-->
使用虛擬帳戶來測試控制通常與整合測試設施方法相關，而不是與傳統的測試資料方法相關。
在整合測試設施（ITF）方法中，在實際系統中建立虛擬帳戶，並透過這些帳戶處理測試事務以評估系統的效能和控制。 這種方法允許審計人員以更整合的方式測試系統並評估它如何處理真實數據。
92
reviewed board of director minutes for authorization of new debt financing.
1. auditor procedure?
2. substantive procedure/test control
1. inspection
2. test of controls
93
selected various voucher packages that had been approved and matched the invoice, purchase order, and receiving report.
1. auditor procedure?
2. substantive procedure/test control
1. reperformance
2. test of control
94
the PCAOB consists of exactly ? CPAs and ? non-CPAs
2+3
95
a compliance audit is based on management's assumption of responsibility Except:
1. maintaining effective controls that provide absolute assurance that the entity administers programs in compliance with related requirements
2. taking appropriate corrective actions on audit findings,
<1>
1--> absolute assurance --> impossible
96
be included in a management representation letter as a specific representation?
1. the competency and objectivity of the internal audit department
2. information concerning fraud by the CFO
<2>
1--> auditor is required to do so but not management
2-->在管理階層陳述信中，揭露有關涉及管理階層成員、在內部控制中發揮重要作用的員工和其他個人的實際詐欺或涉嫌詐欺的資訊確實很重要，特別是當此類詐欺對財務產生重大影響時聲明。 這對於透明度和確保審計師了解可能影響財務報表準確性的任何詐欺活動至關重要。
97
in order to test the valuation assertion related to the client's stockholders' equity, the auditor may do:
1. perform inquiries of management regarding any appropriations of retained earnings
2. analyze the client's retained earnings account by reviewing the propriety of the direct entries to the retained earnings account starting with the date of the previous audit
<2>
While performing inquiries of management (Option 1) can provide valuable information, Option 2 involves a more direct and substantive audit procedure specifically related to the valuation of stockholders' equity.
98
which is correct about a documentation requirement in accordance with GAS?
1. audit documentation should contain sufficient information so that supplementary oral explanations are not required.
2. the auditor should obtain written representations from management acknowledging responsibility for correcting instances of fraud, abuse and waste
<1>
1-->This means that the audit documentation should be comprehensive and clear enough that someone reviewing it can understand the audit work without needing additional verbal explanations.
選項 2 不是 GAS 下的標準檔案要求。 雖然審計師可以從管理層獲取有關財務報表和內部控制等各種事項的書面陳述，但獲取與糾正欺詐、濫用和浪費特別相關的書面陳述並不是標準的文件要求，儘管在某些情況下可以考慮這樣做
99
An auditor conducting a compliance audit will design and perform additional audit procedures in response to the assessed risk of material noncompliance these procedures will include test of controls if:
1. Tests of controls are required by the government mental governmental audit requirements.
2. The auditor has determined a deficiency in the design of internal control over compliance.
<1>
test of operating effectiveness of controls may be required if any one of the following
RUS"
1.Risk Assessment Includes Controls: If the auditor's risk assessment talks about controls, consider tests of controls.
2. Unsure from Substantive Procedures: If substantive procedures don't give enough evidence, you may need tests of controls.
3.Governmental Requirements
100
Which is correct in regards to reporting being another auditor is involved in an integrated audit?
1. the auditee decides whether the other auditor is referenced in the auditor's report
2. The principal auditor decides whether the other auditor is referenced in the auditor's report
<2>
The principal auditor, who has overall responsibility for the audit engagement, decides whether to reference the work of the other auditor in the auditor's report. This decision is typically based on the level of involvement and responsibility of the other auditor in the audit engagement.
101
An auditor had set the materiality level for the financial statement as a whole at $125,000. Which of the following may statement with the auditor most likely consider material?
1. The client did not disclose $45,000 of related party transactions in the footnotes
2. the client's estimate of the allowance of doubtful accounts is $40,000 more than the auditor's estimate
<1>
Failure to disclose related party transactions could affect users' understanding of the company's financial relationships and transactions.
Even though that amount is lower than $125,000
102
What should be included in the accountant documentation of a review engagement?
1. the internal auditor's inspection reports of the level of oil reserves
2. A memo on discussion with the CFO regarding a suspected kiting scheme
<2>
1--> not required to perform in review engagement
Learn - Assess - Check - Talk - Report
the key steps in a review engagement:
Learn: Understand the client's business.
Assess: Assess risks and do basic checks.
Check: Look for unusual things in the financial data.
Talk: Communicate with the client and check financial statements.
Report: Write a review report with limited assurance.
103
If an accountant is performing a review engagement for a non-inssuer and considers, it necessary to communicate a matter that is not presented in the financial statements then to count accountant should include this information in which paragraph of the review report?
1. For opinion paragraph
2. the other matter Paragraph
3. the emphasis of matter paragraph
<2>
DRIP
1. Different Years, Different Checks
2. Report Outside the Financials
3. Important changes in Accounting Methods: Changes in accounting policies or methods that are significant but do not affect the current period's financial statements would be mentioned in this section.
4. Prior Info Presented Differently: 先前資訊的呈現方式不同
2-->emphasis-of-matter paragraph
. GLUC
1. Going Concern Issues
2. Lawsuits
3. Unusual Transactions
4. comparative figures(Major Events After Year-End)
5. change in accounting principle have materially affect the financial statements
**subsequently discovered fact lead to change in audit opinion may present in both!
104
GAGAS prescribe additional standards on
1. direct reporting of illegal acts
2. reporting on internal controls
<1,2>
AICPA creat SAS(Statement on Auditing Standards)
SAS is the base, like the foundation of a house (private sector audits).
GAGAS is the extra layer added on top for government-related audits.
GAGAS has two special blocks:
one for reporting illegal stuff and
one for reporting on how they handle money inside.
105
which can prevent the improper disposition of equipment?
1. A separation of duties between those authorized to dispose of equipment and those authorized to approve removal work orders
2. a periodic analysis of the scrap sales and the repairs and maintenance accounts
<1>
2--> can detect but can not prevent
106
I'm confirming a client accounts receivable in prior years, an auditor discovered many differences between recorded account, balance, and confirmation replies. These differences are resolve and were not misstatements. in defining the sampling unit for the current year auditor most likely would choose which one:
1. individual invoices
2. small account balance
<1>
如果審計師發現往年記錄的帳戶餘額和確認答覆之間存在許多差異，但這些差異已解決並且不被視為錯報，並且審計師現在正在選擇本年度的抽樣單位，那麼選擇**個人會更合適發票**作為抽樣單位。
原因如下：
- 與小額帳戶餘額相比，個人發票提供更詳細和具體的分析。 透過檢查單張發票，審計員可以更深入地了解交易並驗證記錄金額的準確性。
- 由於先前的差異已解決，因此有必要進行更詳細的檢查，以確保個別交易的準確性並避免任何潛在的誤報。
因此，在此背景下，審計人員會選擇個別發票作為當年的抽樣單位，進行更徹底的檢查，以驗證特定交易的準確性。
107
A CPA is considering whether to accept an engagement to prepare a financial statement for a new client, which is correct regarding the independence of the CPA?
1. The CPA should obtain management's understanding regarding the benefits of an accountant being independent of a client
2. the CPA is not required to make a determination of whether the CPA is independent of the client
<2>
So, nonattest services are about providing assistance and advice without giving an official thumbs-up on the accuracy of financial information.
108
a client maintains perpetual inventory records in both quatities and dollars.
if the assessed level of control risk is high, an auditor would:
1. request the client to schedule the physical inventory count at the end of the year
2. increase the extent of test of controls of the inventory cycle
<1>
2--> would increase the extent of substantive testing not the extent of test of controls
109
As part of the current year's audit, the auditor sent out client customer confirmations I received back a number of confirmation responses with exceptions. After investigating further, the auditor would be most concerned with which of the following reasons for the confirmation expectations?
1. A deficiency in accounts receivable internal control, resulted in client reporting errors.
2. There was a clerical error in the confirmation made by the auditor.
<1>
1-->雖然這兩種情況都不理想，但客戶對應收帳款的內部控制缺陷導致報告錯誤比審計師在確認中出現的文書錯誤更令人擔憂。 原因是前者顯示客戶的會計和控制流程中存在系統性問題，這可能會影響其他交易和餘額，而不僅僅是已確認的項目。 這可能導致財務報表出現重大錯報。
2--> clerical error筆誤
110
an auditor should design the written audit plan so that:
1. each account balance will be tested under either test of controls or tests of transactions
2. the audit procedures selected will achieve specific audit objectives
<２＞
When designing the audit plan, it's essential that the procedures selected are directly tied to achieving specific audit objectives. These objectives might include verifying the existence, completeness, valuation, rights, obligations, presentation, and disclosure of specific account balances or transactions. The audit plan should clearly outline how each procedure will help in obtaining audit evidence and meeting these objectives.
選項 1「每個帳戶餘額將在控制測試或交易測試下進行測試」並不完全準確。 在典型的審計中，審計師將評估控制的設計和運作有效性（控制測試），並執行實質程序，其中可以包括細節測試（帳戶餘額）和交易測試。 此外，並非每個帳戶餘額或交易都必須經過控制測試和交易測試。 測試的程度（無論是控制、交易或餘額）通常取決於審計師的風險評估和對控制的依賴。 因此，雖然這個說法有一定的真實性，但它不如第二個選項那麼全面或準確。
111
an auditor would most likely verify that interest earned on bond investment by:
1. Voaching the receive and deposit of interest checks
2. recomputing of the interest earned on the basis of face amount, interest rate, and period held
<2>
recomputing interest earned--> auditing interest earned on bond investments
112
What is in compliance with the requirements governing major federal financial assistance programs under the single audit act, the auditor's consideration of materiality differs from the materiality under general excepted auditing standard. under the Single Audit Act, materiality is :
1. Determine separately for each major federal financial assistance program
2. Decided in conjunction with the auditor's risk assessment
3. calculation in relation to the financial statements taken as a whole
<1>
2--> Materiality must be determined before risk is assessed
3--> under GAAS, is correct. under GAGAS materiality levels may be lower due to the public accountability of the entity, the various legal requirements, and the visibility and sensitivity of governmental programs, activities, and functions
113
to which of the matters would materiality limits not apply when obtaining written client representations?
1. information about related party transactions
2. instances of fraud involving management
<2>
當審計師收到客戶的書面陳述時，他們通常有一個「重要性」門檻，這意味著他們可能會忽略較小的問題，因為這些問題的重要性不足以改變某人對財務狀況的理解。 然而，當涉及到詐欺行為時（尤其是涉及公司經營者的詐欺行為），不存在「小到無所謂」的情況。 因此，任何涉及管理層的詐欺事件總是很嚴重，無論看起來多麼輕微。 另一方面，與關聯方交易的資訊可能需要考慮重要性，具體取決於交易的性質和重要性。
114
which would least likely indicate the existence of related party transactions?
1. writing off obsolete inventory to NRV just before year-end.
2. borrowing funds at an interest rate significantly below prevailing market rates.
<1>
選項 1，「在年底之前將過時的庫存註銷至 NRV（可變現淨值）」可能表明了各種情況，例如潛在的盈餘管理或庫存估值問題，但它並不一定表明存在關聯方交易。
115
A practitioner has been engaged to apply agreed-upon procedures in accordance with SSAE, to prospective financial statements, which of the following conditions, must be met for the practitioner to finalize the engagement?
1. The practitioner takes responsibility for the sufficiency of the agreed-upon procedures
2. the engaging party that procedures performed were appropriate to meet the intended purpose of the engagement
3. the prospective financial statement include a summery of significant accounting policies
<2>參與方確保所執行的程序適合滿足參與的預期目的。
1-->
The practitioner does not take responsibility for the sufficiency of the procedures; that responsibility lies with the engaging party.
3--> should include a summary of significant assumptions, not a summary of significant accounting policies
116
in evaluating the reasonableness of an entity's accounting estimates, an auditor most likely concentrates on methods and significant assumptions that are:
1. deviation from historical patterns
2. objective and not susceptible to bias
<1>
1-->偏離歷史模式
2--> 客觀，不受偏見影響。記住單詞就可解題
117
which is not used in analytic procedures when performing tests related to the occurrence of sales transactions and the accuracy of accounts receivable?
1. purchase order number
2. customer account identification
<1>
1--> should be used in an expenditure cycle but not revenue cycle
related to revenue cycle:
1. invoice amount
2. sales order quantity
3. customer account identification
118
how should we verify the valuation of marketable securities at the balance sheet date?
1. Compare the prices of the securities to publish closing price at the balance sheet date
2. Observe the inventory count of all securities at the balance sheet date
<1>
有價證券通常以其公平市場價值進行估值，可以透過參考證券交易所或其他可靠的金融市場來源公佈的收盤價來確定。
119
Which of the following perceptions is correct about the reliability of audit evidence?
1.An effective internal control structure provides more assurance about the reliability of audit evidence
2. Information obtained indirectly from outside sources is a most reliable evidential matter
<1>
2--> Information obtained directly from outside sources is more reliable than that obtained indirectly
120
Which off the following accounting services may be an accountant to perform without being required to comply with the statements on the standards for accounting and review service?
1. Preparing or working trial balance
2. Preparing send out monthly journal entries
both 1 and 2
An accountant can prepare a working trialed problems and prepare standard monthly Journal entries without being required to compliance with SSARS as long as the performance of the service does not carry forward into the preparation of financial statements
121
the auditor is required to communicate all control deficiencies to those charge in governance.
Why this statement is incorrect?
Because the auditor is not required to communicate or control deficiencies, they only need to communicate the significant deficiencies and material weakness
122
which is correct?
1. human resource policies and practices are part of control activities
2. the internal audit functions part of the monitoring
<2>
1--> not part of control activities but control environment
123
If the predecessor auditor refused to give the current auditor of non-issuer to the documentation. what should the current auditor do?
1. Review the risk assessment of the opening balance of the financial statements.
2. disclaim and opinion, due to a scope, the mythic limitation.
3. withdraw from the engagement.
<1>
124
When a customer's check arrives in the mailroom, a designated employee should create a remittance listing. This listing is then sent to the cashier. Simultaneously, a copy of this remittance listing should also be sent to
1. the accounts receivable bookkeeper
2. internal auditor to investigate the listing for unusual transactions
<1>
1-->should also be sent to the accounts receivable bookkeeper so they can update the individual customer account records accordingly
125
when an auditor does not receive replies to second requests on year-end accounts receivable confirmation, the auditor would most likely:
1. increase the assessed level of detection risk for the existence assertion
2. inspect the shipping records documenting the merchandise sold to the debtors.
<2>
1-->
選項本身沒有錯，只是並不能解決題設案例。
Increase the assessed level to detection risk--> Accept a higher risk that their substantive procedures might not detect a material misstatement related to the existence of an asset or liability.
126
how can an auditor determine that an interest rate swap contract is properly stated at FV on the B/S?
1. testing the data used to arrive at the FV of the interest rate swap contract
2. comparing the contract amount with the FV of the contract and calculating the unrealized gain or loss
<1>
This is a fundamental step. The auditor will need to assess the reliability of the data and models used to compute the fair value of the swap. This might involve:
Reviewing the assumptions and methodologies used in any models or valuation techniques.
Checking the sources of significant inputs, whether they come from observable markets (Level 1 inputs) or are based on unobservable inputs (Level 3 inputs).
If third-party pricing services or experts are used, the auditor would also assess the reliability of these sources and might corroborate their valuations with other independent sources.
1. **測試用於得出利率掉期合約FV的數據：**
這是一個根本性的步驟。 審計師需要評估用於計算掉期公允價值的資料和模型的可靠性。 這可能涉及：
- 審查任何模型或估值技術中使用的假設和方法。
- 檢查重要輸入的來源，無論它們來自可觀察的市場（Level 1 inputs）還是基於不可觀察的輸入（Level 3 inputs）。
- 如果使用第三方定價服務或專家，審計師也會評估這些來源的可靠性，並可能與其他獨立來源證實其估值。
127
which would impair independence?
1. became a member of a trade association that is a client
2. contracted with a client to supervise the client's office personnel
<2>
2--> suspervise the stuff--> management decision --> auditor should not do this--> impair independence
128
which would qualify the audit opinion for a scope limitation?
1. the response is limited to only those items that the attorney has devoted substantial attention
2. the response specifically excludes information on a pending legal matter because of publicity cocerns
<2>
1-->第一個選項可能會也可能不會導致範圍限制，這取決於具體情況以及這些項目對整體財務報表的重要性。
129
1. Sarbanes-Oxley Act of 2002, can perform audit services maximum for ___year?
2. what about ?
Lead or Concurring Partner:
must rotate off of the audit engagement after serving for five consecutive years. They are then subject to a five-year "time-out" period before they can return to that issuer's audit.
1. 主要或共同合夥人: 做5年休5年
SEC補充SOX
2. 其他審計合夥人: 做7年停2年
130
When auditing, prepaid insurance and auditor discovers that the original insurance policy on plant equipment is not available for inspection, the policy's absence most likely indicates the possibility of:
1. a lien on the plant equipment
2. understatement of insurance expense
<1>
since the original policy would likely be in the possession of the lien holder
因為原始保單可能由留置權持有人擁有
131
what should the auditor do if he does not receive a written representation letter from management?
1. withdrawal
2. disclaimer
3. either withdraw or disclaimer
<3>
132
which fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle?
1. the write-ooff of receivables by personnel who recevice cash permits the misappropriation of cash
2. merchandise received is not promptly reconciled to the outstanding purchase order file
<1>
2-->This scenario is more related to the expenditure or purchasing cycle rather than the revenue cycle.
133
which is required before accepting a new audit engagement?
1. making inquiries of the predecessor auditor regarding management integrity
2. Understanding to prospective client's business and the industry in which it operates
<1>
1-->This is a required step as per auditing standards. Before accepting a new audit engagement, the successor auditor should communicate with the predecessor auditor, after obtaining the client's consent, to understand reasons for the change in auditors and to become aware of any matters that might make the successor auditor decide not to accept the engagement. The inquiry about management's integrity is a crucial part of this communication.
2-->The understanding of the client's business and industry typically comes after the engagement has been accepted and is crucial for audit planning.
134
Which is not a primary factor that affects the efficiency and effectiveness of these procedures in detaching possible misstatements by the client?
1. The analytical procedures should be applied to assertions that have potential misstatements which are apparent from an examination of detailed evidence.
2. A more precise expression developed will result in greater effectiveness for identifying the statements.
You're trying to figure out which statement doesn't really help in catching mistakes when checking a company's financial details.
1-->
Only use special checking methods (analytical procedures) if you already see some mistakes when you look at the details:
2-->
The clearer and more specific you are about what you expect to find, the better you'll be at spotting mistakes:
135
which would raise a question about the occurrence of noncompliance with laws and regulations?
1. the failure to develop adequate procedures that detect unauthorized purchases
2. the discovery of unexplained payments made to government employees.
<2>
1--> internal weakness,not an act of noncompliance with laws and regulations
136
audit documentation should prove compliance with quality control standards
T or F
137
which is an analytical procedure?
1. making inquiries of client management
2. comparing current year balances to prior year balances
<2>
Comparisons
Ratio Analysis
Trend Analysis
Budget vs. Actual
Plausibility Checking合理性檢查
138
when there are numerous property and equipment transactions during the year, an auditor who plans to assess control risk at a low level usually performs:
1. analytical procedures for property and equipment balances at the end of the year
2. tests of controls and limited tests of current-year property and equipment transactions
<2>
139
in obtaining an understanding of internal control, what should do?
1. operating effectiveness of controls
2. design of controls
NO-YES
140
the auditor would not be required to use analytical procedures for which purpose?
1. in gaining an understanding of the client and their environment
2. in obtaining corroborating evidence when the evidence gathered by the auditor is circumstantial
<2>
1-->為了更好地了解客戶和他們的環境：分析程序在這裡是有用的。通過比較財務數字或趨勢，審計師可以更好地了解客戶的業務和任何潛在風險。
2-->在獲取證實證據時，如果審計員收集的證據是間接的：這是正確的答案。當審計師只有間接證據（暗示某事但不直接證明它的證據），他們需要更堅固、直接的證據來確認他們的發現。儘管分析程序可以提供見解，但它們通常不是獲得直接確鑿證據的主要方法。相反，審計師可能會尋找文件、確認或其他直接證據。
141
reference in a group engagement partner's report to the fact that part of the auditor was performed by another auditor most likely would be an indication of the:
1. group engagement partner's recognition of the component auditor's competence, reputation, and professional certification
2. divided responsibility between the auditor who conducted the audits of the components of the overall financial statements
<2>
If the main auditor's report mentions that a part of the audit was done by another auditor, what does this likely mean?
1-->然而，在實務中，當集團專案合夥人（或主審計師）在報告中提及其他審計師時，只是為了明確審計職責的劃分，而不一定是為了保證或認可其他審計師的資格。
142
which is false?
1. the external auditor should supervise and review all the work(papers) completed by the internal auditors
2. for routine audit procedures, the external audit may rely on the professional judgment of the internal audit manager
<2>
2--> judgement must made by external auditors
143
an auditor of a nonissuer should design tests of details to ensure that sufficient audit evidence supports which of the following?
1. the planned level of control risk
2. the planned level of assurance at the relevant assertion level
<2>
tests of controls assess control risk, tests of details specifically target the financial statement assertions rather than the effectiveness of controls.
144
which is not a statement assertion recognized by PCAOB?
1. disclosure
2. occurrence
3. cutoff
4. presentation
PCAOB--> coveR up --> rights and obligation
relevant assertion--> cove up--> no R
145
which is correct with respect to discussion among engagement personnel regarding the risk of material misstatement due to fraud?
1. audit documentation must include a description of the discussion
2. discussion among engagement personnel regarding the risk of material misstatement due to fraud is recommended but not required
<1>
專案人員需要就詐欺導致的重大錯報風險進行討論，並且還需要在審計文件中記錄該討論。 這確保了審計團隊在詐欺風險方面意見一致，並提供了進行此類討論的證據。
2--> is required
146
which an auditor would not examine in an effort to address the risk of management override of controls?
1. a journal entry made to record recurring periodic accounting estimates
2. a journal entry made by an individual who does not typically make journal entries
<1>
管理越權通常涉及異常、非重複或未經授權的條目。 雖然經常性的定期會計估計是會計流程的正常部分，但在專門尋找管理層越權的跡象時，它們通常不會成為焦點。 另一方面，由通常不進行此類條目的人進行的日記條目可能是危險信號，表明管理層可能會超越控制。
147
an accountant's working papers for an engagement to review the financial statement of a nonpublic entity would be least likely to include which forms of documentation?
1. explanation of analytical procedures performed
2. study and evaluation of internal control
<2>
For a review of a nonpublic entity's financial statement, which of these would the accountant's working papers most likely not have?
1-->Notes about analytical checks done.
2-->Detailed study of the company's internal controls
Simple explanation:
A review of financial statements is less in-depth than an audit. While an audit requires a deep dive into a company's internal controls, a review mostly involves analytical procedures to understand financial statement changes. So, for a review, the accountant would more likely have notes on analytical checks (Option 1) than a detailed study of the company's internal controls (Option 2). Thus, Option 2 is the answer.
148
when to use?
Audit Materiality:
Tolerable Misstatement:
149
under AICPA, which is required to be independent in fact and appearance when discharging professional responsibilities?
1. a CPA in public practice providing tax and other attestation services
2. A CPA not in public practice
<1>
According to the AICPA's Code of Professional Conduct:
1. **A CPA in public practice providing tax and other attestation services** is required to be independent in both fact and appearance. This is because they are directly involved in providing assurance services to the public or clients, and any perception of bias or lack of independence can compromise the credibility of their work.
2. **A CPA not in public practice** might not need to maintain independence in the same way as those in public practice, especially if they are not performing assurance or attestation services. However, they still need to adhere to other sections of the AICPA's Code of Professional Conduct.
So, the answer is: **A CPA in public practice providing tax and other attestation services**.
150
a practitioner may perform an agree-upon procedures engagement on projected financial statements provided that which is met?
1. the projected financial statement inluced a summary of significant assumptions
2. the practitioner set the criteria to be used in the determination of findings
<1>
2--> The engagement party should set criteria but not practitioner
151
comparative financial statemetns are being reported, and last year's audit engagement included a scope limitation on the audited financial statements,what should the separate paragraph indicate?
1. substantive reasons for the prior-year's qualified opinion
2. restriction on the distribution of the report for internal use only
當報告比較財務報表且去年的審計業務包括對已審計財務報表的範圍限制時，單獨的段落應表明：
1. **上一年保留意見的實質原因**：這是因為本年度財務報表的讀者需要了解上一年保留意見的性質，特別是如果該保留意見是由於某個範圍局限性。 它提供了理解比較數字的背景。
2. **限制報告僅供內部使用**：由於上一年的範圍限制，審計報告中通常不會註明這一點。 分配的限制通常是由於業務的性質或與客戶的特定協議，而不是由於上一年的範圍限制。
所以，答案是：**上一年保留意見的實質原因**。
152
which is a basic element under GAAS?
1. an audit includes evaluating the reasonableness of significant accounting estimates made by management
2. the disclosures provide reasonable assurance that the financial statements are free of material misstatement
<1>
Under the Generally Accepted Auditing Standards (GAAS), the basic element is "an audit includes evaluating the reasonableness of significant accounting estimates made by management."
Here’s a simple explanation:
1. **Evaluating Accounting Estimates**: When auditors do their job, they don't just check the numbers but also look at the estimates the management made. For instance, if a company expects some money to be uncollectible or estimates the value of its assets, the auditor checks if these estimates make sense. This is important because estimates can greatly affect financial statements.
2. **Disclosures and Assurance**: The statement about disclosures providing assurance that financial statements are free of material misstatement isn't a basic element under GAAS. While disclosures are crucial for understanding the financial statements, they are not a direct tool for auditors to assure the absence of significant errors or misstatements. Auditors use a variety of methods and checks, not just disclosures, to determine if financial statements are accurate.
153
which is explicitly included in an audit report expressing an unmodified opinion?
1. we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our review of the financial statements
2. we identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsible to those risks
<2>
Statement 1: This statement, on the other hand, is a bit confusing because it mixes up terms related to both audits and reviews. In an unmodified audit opinion, auditors don’t typically say they have evidence for a 'review' of the financial statements. They would talk about evidence for their 'audit' opinion. So, this statement isn't usually part of an unmodified audit report.
154
what should a predecessor auditor do before reissuing a report?
1. obtain representation letters from the management of the former client and successor auditor
2. review minutes of the board meetings held since the original date of the audit report
<1>
2--> subsequent events
155
the engagement was performed in accordance with what standard?
AICPA
156
in which of the following circumstances would an auditor most likely add an emphasis of matter paragraph to the report which not affecting the auditor's unmodified opinion?
1. to describe a material but justified change in accounting principle
2. management's estimates of the effect of future events are unreasonable
<1>
In general practice, changes in accounting principles are indeed often addressed in an "Other Matters" paragraph. However, there are specific circumstances where an "Emphasis of Matter" paragraph might be used for such changes, even when the auditor issues an unmodified opinion.
157
before reissuing the prior year's audit report on the financial statement of a former client, the predecessor auditor should obtain a letter of representation from the
1. The client's audit committee
2. successor independent auditor
<2>
reissuing the prior's report
a) read the financial statements of the current period
b) compare the prior period information that the auditor reported on with the financial statements to be presented for comparative purposes
c) obtain a letter of representation from the management of the former client and from the successor auditor
158
which can not help the auditor discover a subsequent event at the conclusion of the audit?
1. reviewing and analyzing the latest available interim financial statements
2. reviewing the audit working papers
<2>
1.Reviewing and Analyzing the Latest Available Interim Financial Statements: This is a key method for discovering subsequent events. Interim financial statements can reveal events or transactions that occurred after the date of the financial statements being audited but before the auditor's report is issued. These might include significant transactions, changes in the entity's financial position, or events that provide additional evidence about conditions that existed at the date of the financial statements.
2.Reviewing the Audit Working Papers: This option is less likely to help in discovering subsequent events. The audit working papers typically contain information and evidence gathered during the audit process, which primarily pertains to the period being audited. While these papers might help in understanding the context or identifying areas where subsequent events could have an impact, they generally do not contain information about events occurring after the date of the financial statements.
159
a group engagement partner decides not to refer to the audit of a component auditor. what should the group engagement partner do:
1. add an emphasis of matter paragraph to the auditor's report indicating that the component's financial statements are not material to the consolidated financial statements.
2. contact the component auditor and review the audit programs and working paper pertaining to the component.
<2>
option 1 is a reference to the component auditor which is not required.
160
when should not express an unmodified opinion?
1. is unable to obtain audited financial statements supporting the entity's investment in a foreign subsidiary
2. does not provide the auditor with an engagement letter specifying the responsibilities of both the entity and the auditor
<1>
2--> engagement letter is from auditor to the client
161
1. take responsibility for the other CPA's unmodified opinion
2. not take responsibility for the other CPA's unmodified opinion
3. take responsibility for the other CPA's qualified opinion
4. not take responsibility for the other CPA's qualified opinion
opinion type: depends on cases
auditor's responsibility section: no change/ modified
opinion section: no change/ modified
basic for opinion section: no change/ modified
1. -/ NC / NC/ NC
2. -/ NC /modify/NC
3. -/ NC / NC/ NC
4. -/ NC /modify/NC
when auditor not take responsibility of other CPA, the pinion section should modify to indicate that the group auditor is not taking responsibility for part of the audit
162
1. income statement
2. quarterly results
3. chart of net income for last 15 years
type of information:
basic financial statements/ significant information/ required supplementary information/ extra information/ other information
required procedures:
apply limited procedures/ apply audit procedures/ read information
1. basic financial statement | apply audit procedures
2. required supplementary info | apply limited procedures
3. other info | read
other info VS extra info
Other Information: included with the audited financial statements but isn't part of the actual financial numbers.
Examples: the management's discussion, governance reports, or environmental statements.
extra info: less formal and can refer to any additional details
163
an omission info is required by SEC but not GAAP. what is the effect of this omission on the audit opinion?
no effect
unqualified opinion
164
if the < opintion secion> is modified
should
1. no change
2. modify
<2>
当审计师修改其报告中的意见部分（例如发表有保留、不利或免责声明意见）时，修改“意见基础”部分是必要的。以下是原因：
### 意见与意见基础之间的联系
1. **修改解释**：“意见基础”部分提供了审计师意见背后的理由。如果意见不是标准的无修改（或无保留）意见，解释为何非常重要。这一部分详细描述了导致修改意见的具体原因和背景，帮助财务报表的使用者理解导致修改意见的问题的性质和影响。
2. **透明度和清晰度**：当意见部分被修改时，修改“意见基础”部分对于财务报告的透明度和清晰度至关重要。股东、债权人等利益相关者依赖这些信息来做出明智的决策。为什么审计师无法提供无修改意见的清晰解释对他们理解公司的财务状况和风险至关重要。
3. **遵守审计准则**：通常接受的审计准则要求，当审计师修改其意见时，他们必须在“意见基础”部分清楚地解释原因。这是履行审计师准确、全面报告审计发现的责任的一部分。
### 示例
- **有保留意见**：如果审计师由于审计范围的限制或不普遍的重大错报而发表有保留意见，“意见基础”部分必须详细说明什么受到限制或错报，以及为什么它影响了审计师提供无修改意见的能力。
- **不利或免责声明意见**：对于这些更严重类型的修改，“意见基础”部分将包含对普遍存在的问题或阻碍清晰意见的重大不确定性的更详细解释。
总之，使“意见基础”部分与意见部分的变化相一致，确保审计报告全面且富有信息性，为发表的意见类型提供必要的背景和理由。
165
if information accompanying the basic financial statements has been subjected to auditing procedures, the auditor may include in the auditor's report on the financial statements an opinion that the accompanying information is fairly stated in:
1. all material respect in relation to the financial statements as a whole
2. accordance with generally accepted auditing standards
<1> remember
When an auditor looks at a company's financial statements and the extra details that come with them (like schedules or notes), they can choose to give an opinion on these extra details too. If they have checked these details just like they checked the main financial statements, the auditor can say whether or not they think these extra details are accurate and match up well with the main financial statements. This means the auditor is confirming that the additional information is presented correctly and fits with the overall financial picture shown in the main statements. However, it's up to the auditor to decide if they want to give this extra opinion.
166
reports on special purpose frameworks are issued in conjunction with:
1. pro format financial presentations designed to demonstrate the effects of hypothetical transactions
2. compliance with reporting requirements to be filed with a specific regulatory agency
<2>
虽然预格式财务报表（选项1）也使用特殊目的框架，但它们更多关于展示假设性场景（如“如果”情况）且在标准实践中较不常见。而为监管合规性准备的报告（选项2）更为频繁，是特殊目的框架应用的关键领域。这些框架确保财务信息以满足特定监管需求和标准的方式呈现，这可能与一般财务报告大不相同。
总结来说，特殊目的框架的报告常用于需要符合监管机构特定规则的财务报表。这些报告确保财务信息满足这些机构的独特要求。
167
the auditor read the transmittal accompanying a material inconsistency between the comprehensive report and the financial report. what should the auditor do?
1. request a client representation letter acknowledging the inconsistency
2. request that the client revise the letter of transmittal
<2>
1--> not only acknowledge but correction
168
client omit the related statement of cash flows although all of the information underlying the basic financial statements will not be limited. what opinion should be expressed?
1. unmodified opinion
2. qualification opnion
<2>
169
which can obtain evidence about the occurrence of subsequent events?
1. investigate changes in capital stock recorded after year-end
2. inquire about payroll checks that were recorded before year-end but cash after year-end
<1>
1-->could indicate transactions or events that need to be disclosed as subsequent events. For instance, a new issue of shares or a buy-back of existing shares after the year-end may have significant implications for the financial statements and their interpretation.
170
the quarterly data required by SEC regulation S-K have been omitted. which must be included in the auditor's report?
1. the auditor was unable to review the data
2. the company has not presented the selected quarterly financial data
<2>
提及“審計師無法審查數據”（選項1）通常只有在數據可用但審計師由於某些原因無法審查時才相關。在數據完全未提供的情況下，審計報告中的重點應是公司對這些數據的省略。這是一個重要的區別，因為它將焦點從審計師的行動（或不行動）轉移到公司提供完整和符合規定的財務信息的責任上。
Mentioning that "the auditor was unable to review the data" (option 1) would generally be relevant only if the data were available but the auditor, for some reason, could not review it. In the scenario where the data has not been provided at all, the emphasis in the auditor's report should be on the company's omission of this data. This is an important distinction because it shifts the focus from the auditor's actions (or inactions) to the company's responsibility for providing complete and compliant financial information.
171
what should be included in the opinion paragraph:
1. indicates that management is responsible for the fair presentation of the financial statements
2. identified the applicable financial reporting framework and its origin
<2>
1--> paragraph of management responsibility
172
a scope limitation sufficient to preclude an unmodified opinion will always result when management:
1. refuses to acknowledge its responsibility for the fair presentation of the financial statements in conformity with GAAP
2. prevent the auditor from reviewing the audit documentation of the predecessor auditor
<1>
2--> not accept engagement
173
the reasons for the inability to obtain sufficient information is:
free choose
1. management's responsibility section
2. basis for qualified opinion section
<2>
174
the CPA could not determine whether the suspected illegal bribes were material to the financial statements, or whether senior management was involved in the scheme, CPA should:
1. express an unmodified opinion with an other matter paragraph
2. discliam an opinion on the FS
<2>
the case
-->a substantial uncertainty about the financial information
-->scope limitation(limited to gather all the necessary information)
-->Disclaiming an opinion
175
a contingent liability is probable, but not estimable, and it is disclosed in the footnotes, what opinion should be issued?
1. unmodified opinion
2. qualified opinion due to a scope limitation
<1>
The key here is that the company has properly disclosed the contingent liability. Proper disclosure means that the financial statements still present a true and fair view of the company's financial position, even if a specific liability cannot be quantified.
176
if the financial statements of a prior period have been audited by a predecessor auditor whose report is not presented, the successor auditor should: ( free choice from 2-4)
1. indicate in ______ paragraph
2. not name predecessor auditor
3. indicate the type of report issued by the jewel
4. indicate the substantive reason for the predecessor auditor
1. other matter paragraph
2,3,4
2. the date of the previous report
3. the type of report issued by the predecessor auditor, if the report was modified, the substantive reasons therefor
4. the nature of any emphasis of matter, other matter, explanatory paragraph included in the previous report
2. 上次報告日期
3. 前任審計師所發出的報告類型，如果報告被修改，其實質原因
4. 上次報告中所強調事項、其他事項、解釋段落的性質
177
what is included in other information?
1. notes to the financial statements
2. names of officers and directors
<2>
1--> an integral part of the financial statements.
178
the inclusion of an emphasis of matter paragraph affects the auditor's opinion.
T or F?
F
It highlights something important for readers to understand, but it does not mean there is a problem with the financial statements themselves.
179
which is not an element of CPA firm's quality control system to be considered in establishing quality-control policies and procedures?
1. deciding whether to accept or continue a client relationship
2. assessing a client's ability to establish effective internal controls
<2>
elements of quality control
Human resources
engagement/ client acceptance and continuance
leadership responsibility
performance of engagement
monitoring
ethical requirments
180
which circumstance would permit an independent auditor to accept an engagement after the close of the fiscal year?
1. remedy of limitations resulting from accepting the engagement after the close of the end of the year, such as those relating to the existence of physical inventory
2. receipt of an assertion from the preceding auditor that the entire will be able to continue as a going concern.
<1>
簡單來說，如果獨立審計員在會計年度結束後才接受審計委託，但他們能夠克服因晚開始審計而產生的限制，則他們可能會接受這項委託。這是您第一個選項的本質。
1. **補救限制（如實體存貨問題）**：通常，審計員更傾向於在會計年度結束前或當天開始工作。這是因為某些審計任務，例如觀察實體存貨盤點，在年底時更容易執行。如果審計員晚些開始，他們可能會錯過這個機會。但是，如果審計員可以找到驗證存貨的其他方法（如查看後續的存貨盤點、銷售記錄或使用其他審計程序），他們可能仍會接受這項委託。關鍵是審計員必須能夠收集足夠的證據，即使在延遲開始的情況下，也能對財務報表形成可靠的意見。
2. **從前任審計員處獲得有關繼續營運的聲明**：這個選項是關於從前任審計員那裡獲取有關公司是否能夠繼續運營（即「繼續營運」）的信息。然而，這通常不會是審計員在會計年度結束後接受委託的原因。審計員需要評估許多因素才決定是否接受委託，而且儘管來自前任審計員的信息可能很有用，它通常不是決定是否晚開始審計的決定性因素。
因此，更簡單地說，如果審計員即使在延遲開始的情況下仍能進行徹底的審計（例如通過其他方式檢查存貨），他們可能會同意在會計年度結束後進行審計。僅從上一個審計員那裡獲得有關公司未來的意見通常不足以決定開始晚期的審計。
181
which is not a control environment factor?
1. proper segregation of duties
2. management's approach toward business risk
3. hiring and advancement policies
4. participation of those charged with governance
<1>
2--> Philosophy and operating syle
3--> Human resources
4--> Participation of those charged with governance
the control environment includes:
1. communication and enforcement of integrity and ethical value
2. commitment to competence
3. participation of those charged with governance
4. organizational structure
5. management's philosophy and operating style
6. assignment of authority, responsibility, and accountability
7. human resource policies and practices
**Title: "The Integrity Ship's Journey"**
In a land of corporations, the "Integrity Ship" stood out for its governance and ethics. Captain Ethos led with a strong moral compass, emphasizing integrity and ethical behavior. First Mate Competent ensured crew skills and knowledge. The Steering Committee, with experienced sailors, provided oversight and participated in decisions. The ship had a clear structure; each role was well-defined, mirroring the company's organizational structure. Captain Ethos and his officers managed with a collaborative, cautious style. The Quartermaster, Mr. Responsible, assigned clear duties and accountability. Lastly, Ms. HR managed human resources, ensuring fair practices and crew welfare. Each element of Integrity Ship's journey represents a component of the control environment.
Now, let's translate this into Traditional Chinese:
**標題：「誠信號的旅程」**
在一片公司林立的土地上，「誠信號」以其治理和道德標準脫穎而出。船長Ethos以堅定的道德指南針領導，強調<誠信和道德>行為。大副Competent確保船員具<備技能和知識>。由經驗豐富的水手組成的指導委員會提供監督並<參與決策>。這艘船擁有清晰的結構；每個角色都被明確定義，反映了公司的<組織結構>。Ethos船長和他的官員們採用合作、謹慎的<管理風格>。軍需官Mr. Responsible分配清晰的<職責和責任>。最後，Ms. HR管理<人力資源>，確保公平的實踐和船員福祉。誠信號的每一個旅程元素都代表了<控制環境>的一個組成部分。
182
to determine if the audit was adequately performed, which should be reviewed?
1. checklist
2. working papers
<2>
to check if an audit was done well, it's best to review the working papers. These are detailed records of the auditor's work and findings. They show what the auditor did, the evidence they found, and their conclusions. While a checklist is useful for making sure all steps are followed, it doesn't give the detailed information found in working papers.
183
an auditor considers materiality for the financial statements as a whole in terms of the largest aggregate level of misstatements that could be material to any one of the financial statements.
why incorrect?
not largest but smallest
在規劃審計時，審計員通常會考慮到可能對整個財務報表具有重要性的最小累積錯誤水平。這種方法有助於審計員識別財務報表中最有可能包含重大錯誤的區域，並相應地計劃審計程序。
考慮最小水平的原因是為了確保審計足夠敏感，能夠檢測出那些可能單獨或與其他錯誤聚集在一起，影響依賴這些財務報表的使用者經濟決策的錯誤。這是一種保守的方法，旨在涵蓋所有可能發生重大錯誤的基礎，而不僅僅是最大或最明顯的錯誤。
184
if an auditor is obtaining an understanding of an issuer's information and communication component of internal control which should the auditor assess?
1. the classes of transactions in the issuer's operations that are significant to the issuer's financial statement
2. the integrity and ethical values of top management
<1>
當審計員正在了解發行人的內部控制中的信息和溝通組件時，主要關注的是如何記錄、處理、匯總和報告信息，以及組織內部是如何進行溝通的。
在您提供的選項中：
1. **發行人業務中對發行人財務報表重要的交易類別**：這更加相關且應該進行評估。審計員需要了解重大交易如何啟動、授權、記錄和在財務報表中報告。這種了解有助於審計員評估這些交易可能如何影響財務報表，並識別錯誤可能發生的地方。
2. **高層管理人員的誠信和道德價值**：雖然高層管理人員的誠信和道德價值的確重要，且是整體控制環境的一部分，但它們並非特別屬於內部控制中的信息和溝通組件。這個方面更多地與高層的基調和整體控制環境相關，而不是特別針對信息和溝通流程。
因此，在評估內部控制中的信息和溝通組件的背景下，審計員應著重於了解發行人業務中對發行人財務報表重要的交易類別。這種了解是評估組織內部如何溝通和處理有關這些交易的信息的關鍵。
185
which is not a possible reason why a properly designed system of internal control may fail to prevent of detect fraud?
1. inadequate segregation of duties may allow one person to both perpetrate and conceal fraudulent
2. human error may result in an inappropriate application of controls
<1>
如果假設系統設計得當，由於職責分工不足（選項1）導致的失敗不應該發生，因為這將與「設計得當」系統的前提相矛盾。
另一方面，人為錯誤（選項2）即使在最好的系統中也可能發生。沒有任何系統可以完全消除人為錯誤的可能性，但設計良好的系統可以檢測並減輕這些錯誤。
因此，假設系統設計得當，選項1（職責分工不足）不會是失敗的原因，因為它表示系統設計本身存在缺陷。
186
corporate restructuring is which component of internal control？
1. monitoring
2. risk assessment
<2>
risk assessment always includes the words 'new', change, lying, treating
皇家偵察員（風險評估）：控制國有一群熟練的偵察員，他們冒險進入世界以識別威脅和機會。他們的見解幫助王國做好準備和適應，確保其目標始終觸手可及。
187
which component of internal control？
1. authorization of transactions
2. participation of those charged with governance
3. assignment of authority, responsibility, and accountability
4. segregation of duties
5. human resource policies and practices
6. prenumbering of documents
7. operating performance reviews
1. Existing control activities
2. control environment
3. C
4. E
5. C
6. E
7. E
authority--> transaction--> E
authority--> policy-->C
188
internal audit function is which component of internal control?
1. control environment
2. monitoring
<2>
present and fuctioning
189
which component of internal control?
1. the way in which significant events are captured by the accounting system
2. operating performance reviews
information and communication
capture記録
review 回顧
190
whose responsibility?
1. obtaining an understanding of internal control
2. coordinating client assistance
1. auditor
2. auditor and management
191
when increase the planned assessed level of control risk because certain control activities were determined to be ineffective, the auditor would increase:
1. extent of test of details
2. extent of test of controls
<1>
Control Risk: This is the risk that a company's internal controls (like checks and balances) are not effective in preventing or detecting errors or fraud in its financial statements.
Tests of Controls: These tests check how good a company's internal controls are.
Tests of Details: These are more in-depth checks. They look directly at transactions and balances in the financial statements to make sure they're correct.
192
the purpose of applying analytical processes in the overall review stage of an audit NOT includes assisting the auditor:
1. enhancing the understanding of the client's business
2. evaluating the going concern assessment
<1>
1--> planning procedure
193
inherent risk and control risk differ from detection risk in that they:
1. may be assessed in either quantitative or nonqualitatice terms
2. exist independently of the financial statement audit
當談到內在風險和控制風險，與發現風險的不同之處在於它們：
2. **獨立於財務報表審計存在。**
以下是簡單的解釋：
- **內在風險：** 即使沒有控制措施，賬戶或交易中出現錯誤或欺詐的風險。這是業務本身的一部分，取決於業務的性質、交易的複雜性以及其他因素。例如，從事複雜金融工具交易的企業，由於其交易的複雜性，自然存在於其財務報表中出錯的較高內在風險。
- **控制風險：** 指的是公司的內部控制（如檢查和平衡）無法捕捉或防止錯誤或欺詐的風險。這種風險基於公司內部控制系統的強度或薄弱。例如，監管不善或流程薄弱的公司具有更高的控制風險。
- **發現風險：** 是指審計員未能在財務報表中發現重大錯誤的風險。與內在風險和控制風險不同，發現風險直接與審計過程本身的有效性有關。它涉及審計員的程序以及他們發現任何問題的能力。
內在風險和控制風險是業務及其環境的一部分；無論是否進行審計，它們都存在。另一方面，發現風險完全關於審計過程。它是三者中唯一一個審計員可以通過審計程序的性質、時機和範圍來控制的風險。
194
test segregation of duties related to inventory by:
1. personal inquiry and observation
2. document inspection and reconciliation
<1>
Personal inquiry and observation provide direct evidence of how duties are segregated in practice. It allows the auditor to see firsthand if the controls are being followed and if they are effective. Document inspection and reconciliation are also important, but they might not give as clear a picture of how duties are actually divided on a day-to-day basis.
195
an auditor is in the process of gathering evidence during the current audit. which would not be considered corroborating evidence?
1. sales invoices
2. inquiries
<1>
銷售發票： 這些發票發給客戶，代表銷售交易的外部證據。它們顯示了銷售發生，但並未提供有關內部會計過程如何記錄和管理這些銷售的詳細洞察。
底層會計記錄： 這些包括合同、賬簿、工作表、支票和分錄日記帳等文件。它們代表了公司財務系統的內部運作。當審計員審查這些記錄時，他們可以更深入地了解交易是如何被記錄、處理和在財務報表中報告的。inquiry, board minutes, confirmations
因此，當審計員檢查銷售發票時，他們正在驗證交易的發生，但不一定深入了解內部會計記錄，這些記錄顯示了這些交易如何被記錄和融入公司的財務系統。底層會計記錄提供了對公司財務流程和控制的更全面的視角。
196
which of the following action is an analytical procedure that an auditor most likely would use while auditing a company's notes payable?
1. multiplying the average outstanding loan balance by the interest rate and comparing the result to interest expense actually recorded
2. reviewing the details of the company's loan and interest expense accounts to determine that all payments were properly recorded.
<1>
將平均未償還貸款餘額乘以利率： 此舉動涉及根據貸款的已知參數（平均餘額和利率）計算預期的利息費用。
將結果與實際記錄的利息費用進行比較： 審計員接著將這個計算出的利息費用與公司在其財務報表中實際記錄的數額進行比較。這種比較可能揭示出需要進一步調查的不一致性或異常情況。
另一方面，第二個選項：
審查公司貸款和利息費用賬戶的詳細信息，以確定所有付款是否得到妥善記錄，
更像是一種實質性測試程序。它涉及直接檢查賬戶中交易和餘額的詳細信息，以驗證它們的準確性和完整性。這與分析程序不同，分析程序更多地涉及理解財務數據中的關聯性和趨勢。
197
in selecting an appropriate sample for a substantive test, the auditor most likely would stratify the population if the:
1. The auditor plans to give greater representation to large record amounts
2. The auditor suspects that management fraud has occurred during the year.
<1>
1-->給予大筆記錄金額更多的代表性
2-->審計員懷疑管理層在年內發生了欺詐
stratification is often used when the population has highly variable recorded amounts and involves grouping the population into similar groups, such as grouping large recorded items as a group.
198
the analytical procedures should be applied to assertions that have potential misstatements which are apparent from an examination of detailed evidence
T or F?
F
the use of analytical procedures for testing assertions is most effective and efficient if the potential misstatements are from an examination of the detailed evidence or if insufficient details are available
199
which should use attribute sampling?
1. making an independent of the amount of LIFO inventory
2. inspecting employee time cards for proper approval by supervisors
<2>
1--> classical variables sampling or probability proportionate to size sampling
200
advantage of regression:
1. may use multiple sources of date. including financial and nonfinancial informing an expectation
2. provides direct and quantitative measures of the precision of expectation
<2>
201
which of the factors would the auditor not explicitly consider when determining sample size in an attribute sample for a test of controls?
1. the expected population deviation rate
2. the tolerable misstatement
<2>
2--> should be tolerable deviation rate
The Tolerable Misstatement: This factor is more relevant to substantive testing rather than to tests of controls. Tolerable misstatement refers to the amount of error or misstatement in financial information that an auditor could accept without altering the overall conclusion of the audit. It's directly related to materiality considerations in the context of the financial statements as a whole, not to the effectiveness of controls.
In tests of controls, auditors are primarily concerned with the operating effectiveness of internal controls, not directly with the amounts in the financial statements. Hence, factors like the expected population deviation rate, the risk of assessing control risk too low, and the desired level of assurance are more pertinent than the tolerable misstatement.
202
the inquiry: whether operating personnel have communicated to management regarding internal control and how it functions to prevent, deter, or detect material misstatement due to fraud.
why incorrect?
whether management( not opertating personeel) has communicate to those chanrged with government(not manager)
203
analytical procedures are most appropriate when testing which type of transactions?
1. operating expense transaction
2. long-term debt transactions
<1>
常規和規律： 營運費用會定期發生並遵循可預測的模式。這使得將它們與不同時期或預算進行比較變得更容易。
交易量： 通常有許多營運費用交易，為分析提供了大量數據。
識別趨勢和差異： 通過觀察這些規律性交易，審計員可以快速發現與常規模式不符的情況，這可能表示存在問題。
相比之下，長期債務交易的頻率較低且較為複雜，使其不太適合這種分析。
204
GAAS have not been followed in which situation?
1. the auditor receives very few responses to negative confirmations sent. the auditor does not perform any additional procedures related to the non-responses
2. the auditor received several faxed and emailed confirmation responses indicating that the amount stated is correct. the auditor does not perform any additional procedures related to these electronic responses.
<2>
1--> negative confirmations only request a response when the amount stated is incorrect, so there would be no need to perform additional procedure in this case
2-->以電子方式收到的確認回覆應透過致電寄件者進行驗證。 這類回應可能看起來像是來自受訪者，但實際上它們實際上是由另一方（例如客戶）產生的
205
the entity invested in a serise of derivatives to hedge against the risk associated with fluctuating oil prices. the auditor should:
1. perform analytical procedures to determine if the derivative are properly value
2. examine the contracts for possible risk exposure and the need to recognize losses.
<2>
當實體投資於一系列衍生工具以對沖波動的油價風險時，審計員應：
2. 檢查合約以評估可能的風險暴露和認列損失的需求。
當一個實體為了對沖目的（如對抗油價波動）投資於衍生工具時，審計員的主要關注點是了解這些合約的性質、相關風險以及這些風險如何被管理和報告。通過檢查這些合約，審計員可以評估衍生工具的使用方式、條款和條件，以及潛在的風險暴露，包括未認列損失的可能性。這對於確保衍生工具按照相關會計準則正確入賬非常重要，並且在財務報表中對風險和公允價值進行必要的披露。雖然評估衍生工具是否被適當估值的分析程序（選項1）也很重要，但首先理解合約條款和相關風險是審計衍生工具的更基本步驟。
206
which should express a qualified opinion or an adverse opinion?
1. there has been a change in accounting principles that has a material effect on the comparability of the entity's financial statements
2. conditions that cause the auditor to have substantial doubt about the entity's ability to continue as a going concern are inadequately disclosed
<2>
1--> if the change was accounted for properly, will be an unmodified report with an emphasis of matter paragraph
2--> inadequate disclosure about ability as a going concern is depart from GAAP
207
a weakness in internal control over recording retirements of equipment may cause an auditor to:
1. inspect certain items of equipment in the plant and trace those items to the accounting records
2. select certain items of equipment from the accounting records and locate them in the plant
<2>
existence
當記錄設備報廢的內部控制有缺陷時，主要關注的是不再存在或不再使用的資產是否仍作為資產記錄在會計記錄中。 透過從記錄中選擇項目，然後嘗試在工廠中尋找它們，審計員可以驗證記錄的資產是否確實存在並正在使用。 這種方法有效地檢驗了資產記錄的完整性和準確性。 如果審計師無法找到帳戶中記錄的某些項目，這可能表示存在諸如未能記錄報廢或資產處置等問題。
檢查工廠中的設備並追溯到記錄（選項 1）也是一個有效的程序，但它更側重於驗證明顯存在的資產的存在和狀況all equipment on hand has been recorded，而不是專門解決與未記錄報廢相關的風險的設備ather than testing the assertion that all recorded equipment is still in service。
208
which can test the existence assertion during an audit of accounts receivable?
1. Trace transitions from the subsidiary ledger to the general ledger
2. send confirmations to customers
<2>
1--> test the completeness of AR
209
management's responses to inquiries can be corroborated by each of the following, except:
1. preparation of the summary of unadjusted differences
2. visits to the entity's premises and plant facilities
<1>
管理層對詢問的回應可以通過以下方式得到證實，但以下哪一項除外：
1. 準備未調整差異摘要。
這個選項並不直接證實管理層的回應。準備未調整差異摘要涉及列出客戶記錄與審計員發現之間的差異。雖然這個過程可以突顯出管理層斷言可能存疑的領域，但它並不是積極地證實他們的回應。證實通常涉及從獨立來源獲取證據或通過直接觀察，而這並非僅僅準備差異摘要所能做到的。
相比之下，參觀實體的場所和工廠設施（選項2）可以提供直接證據來證實管理層關於運營過程、資產狀況和業務的其他實體方面的陳述。
observation, inspection, visit is work!
210
which of the following best describes the auditor's responsibility respect to fair values?
1. the auditor should obtain sufficient appropriate audit evidence to provide reasonable assurance that fair value measurements and disclosure are in conformity with GAAP
2. the auditor should assess the risk of material misstatement of fair value measurements
<1>
1-->審計員應獲取足夠適當的審計證據，以提供合理保證，確保公允價值的計量和披露符合美國通用會計原則（GAAP）。
雖然評估公允價值計量的重大錯報風險（選項2）也是審計員責任的重要部分，但它更多是獲取足夠適當審計證據整體過程的一部分。第一個陳述包含了風險評估和收集支持所呈現公允價值的證據。
211
which would not be an internal control designed to reduce the risk of errors in the billing process?
1. comparing control totals for shipping documents with corresponding totals for sakes invoices
2. reconciling the control totals for sales invoices with the accounts receivable subsidiary ledger
<2>
不旨在減少賬單處理過程中錯誤風險的內部控制是：
2. 將銷售發票的控制總額與應收賬款子賬簿進行對賬。
這種控制更多的是與確保記錄銷售的準確性和完整性以及維護應收賬款賬簿有關，而不是直接針對賬單處理本身。它是關於核實所有銷售發票是否正確記錄在應收賬款賬簿中，並確保財務記錄的完整性。
相比之下，將裝運文件的控制總額與相應的銷售發票總額進行比較（選項1）直接與賬單處理過程相關。這種控制有助於確保裝運被適當地開具賬單，並且裝運的貨物與開具的賬單金額之間沒有差異，從而直接解決賬單處理中可能出現的錯誤。
212
to establish the existence and ownershop of a long-term investment in the common stock of a public traded company, an auditor ordinarily performs a security count or:
1. confirms the number of shares owned that are held by an independent custodian
2. confirms the number of shares owned with the issuing company
<1>
213
to search for unrecorded payables:
1. examine a sample of creditor balances to supporting invoices, receiving reports, and purchase orders.
2. compare cash payments made after the balance sheet date with the accounts payable trial balance
<2>
1--> the account payable exist
2-->將資產負債表日後所作的現金支付與應付賬款試算表進行比較有助於識別未記錄的應付賬款，因為它檢查了資產負債表日後的任何支付是否實際上是為了資產負債表日前發生的費用。如果資產負債表日後的支付是為了資產負債表日前的費用，那麼該費用應該在資產負債表日的賬目中列為應付賬款。這種比較有助於確保所有應在資產負債表日記錄的負債都被包括在內，從而捕捉可能遺漏的任何負債。
214
an auditor suspects that a client's cashier is misappropriating cash recipes for personal use by lapping customer checks received in the mail. in attempting to uncover this embezzlement scheme, the auditor should compare:
1. dates uncollectible accounts are authorized to be written off with the dates the write-offs are actually recorded
2. dates checks are deposited per bank statement with the dates remittance credits are recorded
<2>
為了揭露涉及交替使用客戶支票的盜用計劃，審計員應選擇第2項：比較銀行對賬單上記錄的支票存款日期與匯款信用記錄的日期。
交替使用是一種欺詐行為，其中出納員挪用現金，並利用後續的現金收款來掩蓋短缺。通過比較銀行對賬單顯示的支票實際存入日期與公司帳簿記錄的收款日期，審計員可以識別出差異。這種比較可以揭示記錄現金收款是否存在延遲，這是交替使用的常見跡象。
第一個選項，比較認可的壞帳撤銷日期與實際記錄的撤銷日期，更多地與揭露撤銷過程中的問題有關，而不是檢測交替使用計劃。
215
after the identification of misstatement in the sample, the next step is:
1. consider expanding the size of the sample
2. project the detected error to the entire population
<2>
After identifying a misstatement in the sample, the next step is typically:
2. Project the detected error to the entire population.
When a misstatement is found in a sample during an audit, the auditor usually needs to estimate the potential impact of that misstatement on the entire population from which the sample was drawn. This process, known as error projection, helps the auditor in assessing the materiality of the misstatement and in deciding whether additional auditing actions are needed. The projection provides an estimate of what the total misstatements in the entire population might be, based on the findings in the sample.
Considering expanding the size of the sample (option 1) might be a subsequent step if the projection indicates that the misstatement could be material and more information is needed to assess the full extent of the issue. However, the immediate step after finding a misstatement is usually to estimate its impact on the overall financial statements.
216
which would indicate source document fraud?
1. the same customer purchase order number appears on different customer invoices
2. the same invoice number appears on different invoices
<2>
The invoice number is the only one!
表明來源文件欺詐的選項是：
2. 相同的發票號碼出現在不同的發票上。
這種情況是潛在來源文件欺詐的明顯紅旗。發票號碼通常是每筆交易的唯一標識符。如果同一發票號碼出現在不同的發票上，這表明可能存在重複或偽造的文件。這可能是掩蓋資金挪用、虛報收入或從事其他欺詐活動的嘗試。這是一個嚴重的問題，需要審計員進行徹底的調查。
另一方面，同一客戶訂單號碼出現在不同的客戶發票上（選項1）可能不一定表示欺詐。如果為同一訂單的不同部分生成多張發票，這種情況可能合法發生。然而，它仍然值得關注，以確保它不是不規則行為的跡象。
217
after performing risk assessment procedures, an auditor decided not to perform tests of control. the auditor most likely decided that:
1. it would be inefficient to perform test of controls that would result in a reduction in planned substantive tests
2. a reduction in the assessed level of control risk is justified for certain financial statement assessments
<1>
想象一家小型的當地麵包店正在接受審計。這家麵包店使用基本的收銀機和手工記錄銷售。
內部控制評估：審計員最初評估麵包店的內部控制。他們注意到這些控制，如手動輸入銷售和現金處理，非常基本，沒有複雜的系統來控制銷售交易。
決定測試控制：審計員可以測試這些控制，以查看它們是否有效。然而，假設審計員意識到，即使這些控制有效，它們也是如此基本，以至於測試它們不會顯著減少實質測試（如檢查銷售記錄、發票和銀行對賬單）所需的工作量。
效率考慮：審計員決定直接進行實質測試更為高效，因為在麵包店測試簡單的控制不會給審計過程增加太多價值或保證。審計員無論如何都需要進行實質測試，以全面了解麵包店的銷售和現金處理情況。
總之，審計員跳過測試控制，因為鑑於控制環境的簡單性，這被認為是低效的，而直接進行實質測試，在這種情況下，對審計更為關鍵。
218
mean per unit estimation
=aver* num of items in population
"每單位平均估算"是一種在審計中使用的統計方法，用於基於從該總體中抽取的樣本單位的平均值（均值）來估算總體的總值（例如，庫存的總值）。以下是它的工作原理的簡單分解：
1. **抽樣**：審計員從整個總體中選擇一個單位的樣本（例如，從總庫存中選擇一些項目）。
2. **測量**：然後審計員測量樣本中每個單位的價值。
3. **計算平均值**：計算這些抽樣單位的平均（均值）價值。這是通過將樣本中所有單位的價值加起來，然後除以樣本中單位的數量來完成的。
4. **估算總值**：然後將平均值乘以總體中的單位總數，以估算整個總體的總值。例如，如果庫存項目樣本的平均值為100美元，並且總共有1,000個項目，則估算的庫存總值將為100美元 x 1,000 = 100,000美元。
這種方法在審計中很有用，因為它提供了一種有效的方式來估算大量總體的價值，而無需單獨測量每個單位，這既耗時又不切實際。然而，每單位平均估算的準確性取決於樣本的代表性和用於抽樣的方法。
219
ratio estimate
= (audit value of sample/ BV of sample ) * total BV
"比率估算"是一種在審計和其他領域使用的統計技術，用於基於在樣本中觀察到的比率來估算總體中某個值。當總體和樣本中存在兩個變量之間的相關性時，這種方法特別有用。以下是在審計背景下的基本解釋：
1. **選擇變量**：審計員確定兩個相關的變量。例如，審計員可能選擇銷售和應收賬款之間的關係。
2. **抽樣**：從總體中抽取一個樣本。在我們的例子中，會選擇一些銷售交易及其相關的應收賬款金額的樣本。
3. **計算樣本中的比率**：審計員計算樣本中兩個變量的比率。使用該例子，這可能是樣本中應收賬款與銷售的比率。
4. **將比率應用於整個總體**：然後審計員將這一比率應用於整個總體中一個變量的相應總數，以估算另一個變量的總數。例如，如果在樣本中發現應收賬款與銷售的比率是一致的，並且已知該時期的總銷售額，審計員可以估算該時期應收賬款的總預期金額。
比率估算之所以有效，是因為它允許將樣本數據外推，以對整個總體進行推斷，這比檢查總體中的每一項更高效。然而，這種方法的準確性在很大程度上取決於樣本的代表性和變量之間相關性的強度。
220
which would ask the predecessor auditor to provide after accepting an audit engagement?
1. matters that may facilitate the evaluation of financial reporting consistency between the current and prior year
2. the predecessor auditor's understanding of the reasons for the change of auditors
<1>
在接受審計委托並與前任審計員溝通時，新上任的審計員應該要求提供：
1. 有助於評估當前年度與前一年度財務報告一致性的事項。
這一要求旨在獲取有助於新審計員評估會計政策或其他影響期間財務報表可比性因素是否有變化的信息。了解財務報告的一致性對於審計員形成對當前年度財務報表的準確和公正意見至關重要。這些信息可以包括有關會計政策、前一年度所做的調整，以及可能影響年度間可比性的任何重大交易或事件的細節。
詢問前任審計員關於更換審計員的原因的了解（選項2）也很重要。然而，這些信息更多地與了解審計員更換的情況有關，這可能包括與會計原則或審計程序的分歧有關的問題，而不是直接促進評估財務報告一致性。
221
an auditor is concerned about a policy of management override as a limitation of controls. which test would best assess the validity of the auditor's concern?
1. verify whether approved spending limits are exceeded
2. tracing sales orders to the revenue account
<1>
如果審計員擔心管理層覆蓋控制政策作為控制的限制，最能評估審計員擔憂有效性的測試是：
1. 驗證是否超過了批准的支出限額。
管理層覆蓋控制是指管理層可能利用其權威繞過既定控制的可能性，這可能導致不準確或操縱的財務報告。通過驗證是否超過了批准的支出限額，審計員可以評估管理層是否遵守設定的內部控制程序，或者他們是否出於任何原因覆蓋了它們。這個測試直接針對支出領域的管理層覆蓋風險，這是常見的覆蓋可能發生的領域。
另一方面，將銷售訂單追溯到收入賬戶（選項2）更多地關注收入認可過程，與評估管理層覆蓋控制的風險關聯性較小。這個測試對於驗證收入記錄的準確性很重要，但不是特別針對與管理層覆蓋控制的風險相關的測試。
222
proper supervision of assistants is NOT required for:
1. to ensure that the work performed by assistants provides the professional development they will need to advance within the firm
2. to ensure that the work performed by assistants is consistent with the conclusions presented in the report
<1>
適當地監督助手不是為了：
1. 確保助手所做的工作提供他們在公司內部晉升所需的專業發展。
雖然專業發展對助手來說很重要且有益，但在審計背景下，監督的主要目的是確保所執行工作的質量和準確性，不一定專注於助手的專業發展或職業晉升。監督對於確保工作符合審計目標並且報告中呈現的結論基於適當執行且經過驗證的工作非常關鍵。
另一方面，確保助手所執行的工作與報告中呈現的結論一致（選項2）正是適當監督所必需的。這確保了審計發現和結論的可靠性和可信度。
223
which strategy would a CPA consider in auditing an entity that processes most of its financial data only in electronic form, such as a paperless system?
1. continuous monitoring and analysis of transaction processing with an embedded audit module
2. verification of encrypted digital certificates used to monitor the authorization of transactions
<1>
在審計一個主要只以電子形式處理財務數據的實體時，例如無紙化系統，注冊會計師（CPA）會考慮：
1. 使用嵌入式審計模塊對交易處理進行持續監控和分析。
這種策略在數字化或無紙化環境中非常有效。嵌入式審計模塊允許持續監控和分析發生的電子交易。這可以包括檢查是否遵守內部控制程序、驗證交易的準確性和完整性，以及實時識別任何異常或可疑活動。這樣的系統使CPA能夠評估交易處理系統的完整性和生成的財務數據的可靠性。
驗證用於監控交易授權的加密數字證書（選項2）也很重要，尤其是對於確保交易的安全性和真實性。然而，這種策略更多地是在驗證交易的安全性方面，而不是持續監控交易處理本身。在一個財務數據以電子方式處理的無紙化系統中，能夠持續監控和分析數據提供了一種更全面的審計方法。
224
which is required documentation in GAAS?
1. a planning memorandum establishing the timing of the audit procedures and coordinating the assistance of entity personnel
2. an audit plan setting forth in detail the procedures necessary to accomplish the engagement's objectives
<1>
在GAAS（普遍接受的審計準則）中，所需的文檔包括：
2. 詳細列出完成審計任務目標所需程序的審計計劃。
這種文檔在GAAS下是必需的。審計計劃是一份詳細的文件，概述了審計程序的性質、時間和範圍。它包括審計員打算採取的具體步驟，以收集足夠適當的證據，以對財務報表形成意見。這個計劃對於確保審計有效、高效地進行並符合審計標準至關重要。
雖然建立審計程序時間表並協調實體人員協助的計劃備忘錄（選項1）對於審計的組織和管理很重要，但它並不像詳細的審計計劃那樣特別被GAAS要求。計劃備忘錄更多關於後勤協調，而審計計劃則是審計實質性程序的全面概述。
225
which is incorrect as it pertains to the auditor's consideration of significant risk during an audit?
1. inherent risk is the only consideration
2. the impact of the client's controls related to the perceived risk is a determinant for deciding the level of significance.
<2>
when determining whether a risk is significant or not, the auditor should ignore the impact of the client's controls related to that risk
226
when using classical variable sampling for estimation, an auditor normally evaluates the sampling results by calculating the possible error in either direction. the concept is known as:
1. precision
2. project error
<1>
在使用經典變量抽樣進行估算時，通過計算兩個方向上可能的錯誤來評估抽樣結果的概念被稱為“信賴區間”或“精確度”。
在經典變量抽樣中，審計員根據樣本為總體估算一個數字量（如美元值）。這個估計周圍的信賴區間反映了真實總體值可能所在範圍，具有給定的信心水平（通常以百分比表示，如95％）。
這個區間考慮了從估算值兩個方向上的可能錯誤。它是對估算的精確度的衡量：區間越窄表示精確度越高，區間越寬則表示精確度較低。信賴區間幫助審計員評估實際值與估算值顯著不同的風險。
227
an auditor assesses control risk because it:
1. affects the level of detection risk that the auditor may accept
2. is relevant to the auditor's understanding of the control environment
<1>
use the assessed level of control risk together with the assessed level of inherent risk to determine the assessed risk of material misstatement, which in turn affects the acceptable level of detection risk for financial statement assertions.
228
inherent risk is evaluated to help an auditor assess?
1. the susceptibility of a financial statement assertion to a material misstatement assuming there are no related control
2. the internal audit department's objectivity in reporting a material misstatement of a financial statement assertion it detecs to the audit committee
<1>
評估固有風險有助於審計員評估：
1. 在沒有相關控制的情況下，財務報表斷言對重大錯報的易感性。
固有風險是指由於錯誤或欺詐，關於交易或餘額的斷言出現重大錯報的易感性，而不考慮相關內部控制的有效性。它是衡量特定財務報表領域發生錯報的可能性的一個指標，假設沒有內部控制來防止或檢測它。這種評估幫助審計員決定進一步審計程序的性質、時間和範圍。
選項2，討論內部審計部門在向審計委員會報告其發現的重大錯報時的客觀性，更多地與控制風險或內部審計功能的有效性相關，而不是固有風險。控制風險涉及重大錯報不會被實體的內部控制及時預防、發現和糾正的風險。
229
which would be most efficient for obtaining information about the transfer agent's internal control?
1. perform tests of controls on a sample of the audited firm's transactions through the agent
2. review a report on the design, implementation, and effectiveness of the transfer agent's internal control procedure by the agent's own auditor
<2>
對於獲取有關過戶代理人內部控制的資訊，以下是兩種方法的簡單解釋：
1. **對經審計公司透過代理人的交易樣本進行控制測試**：這涉及直接檢測過戶代理人處理的選定交易。這種方法直接且能具體瞭解代理人控制措施的實際運作情況。然而，這可能耗時且需要大量資源，因為它需要對個別交易進行詳細檢查。
2. **審閱代理人自己的審計員所提供的報告，該報告講述過戶代理人內部控制程序的設計、實施與有效性**：這種方法涉及審閱外部審計員對過戶代理人內部控制的報告。這份報告通常會評估這些控制措施的整體設計和有效性。這種方法的勞動強度較低，因為它依賴於代理人審計員已完成的工作。然而，它取決於外部審計員審查的質量和徹底性。
就效率而言，**選項2** 通常更有效率，因為它利用了現有的工作並提供了一個更廣泛的過戶代理人控制概覽，無需進行詳細的交易級測試。然而，選擇可能取決於特定情境，例如代理人審計員的可靠性和所需的細節程度。
230
financial projection VS financial forecast
哪一個推測性更強，需要限制使用？
financial projection.
財務預測和財務預測報告在是否需要限制使用和分發報告的段落上的不同，主要是由於這兩種財務報表的性質和目的不同。
（Financial Projection）：預測代表假設性的情景，基於一套可能不一定是最可能發生的未來事件的假設。預測通常是為了展示特定條件和情境的影響，如最佳情況或最壞情況。由於預測的性質具有推測性，使用者誤解或濫用信息的風險較高。因此，報告中包含限制使用和分發的段落，以限制報告的流通，並澄清預測不應被視為未來結果的保證。這種限制有助於管理期望並減少誤解的風險。
（Financial Forecast）：另一方面，財務預測基於對預計會發生的條件和事件的假設。它們通常被視為更「正常」的業務預測，反映了管理層對最可能的未來財務結果的合理預期。由於預測基於更可能的未來條件，因此與projection相比較推測性較小。因此，需要限制使用段落的必要性不像預測那麼重要，因為與預測相比，誤解或濫用的風險較低。
231
which is not entity-level control?
1. biannual distribution of the code of conduct via intranet
2. periodic comparison of actual assets with amounts shown in the accounting records
3. period-end financial reporting controls
4. risk assessment process controls
5. controls over the completeness of deposited cash
<2,5>
2--> control activity relate to the existence of specific assets
5--> account level
232
if an auditor of a nonissuer concludes that reasonable justification exists to change an audit engagement to an agreed-upon procedures engagement, then the report should:
1. generally not include a reference to the the original audit engagement but include an explanatory paragraph discussing the change requested by management
2. not include a reference to the original audit engagement but may include a reference to procedures that have been performed
<2>不應提及原始的審計任務，但可以參考已執行的程序。
233
which should not be included in a report on a compilation of a projection?
1. the accountant has no responsibility to update the report for future events and circumstances
2. the hypothetical assumptions used in the projection are reasonable in the circumstances
<2>
In a compilation engagement, the accountant's role is to assemble information into a financial statement format without providing any assurance on the information. The accountant does not evaluate the reasonableness of the assumptions used in the projection; this is outside the scope of a compilation engagement. Therefore, a statement about the reasonableness of the assumptions would not be appropriate in such a report.
234
which cognizant agencies is most likely to be assigned to an auditee?
1. the federal agency that provides the most funding to the auditee
2. the federal agency that is located within the auditee's region
<1>
在審計中，最有可能被指定給被審計單位的認知機構是：
1. 提供最多資金給被審計單位的聯邦機構。
在審計目的上，認知機構通常是根據一個實體收到的資金數量來指定的。提供最主要資金量的聯邦機構通常被指定為認知機構。這種方法確保了對被審計單位的活動具有最重要財務利益的機構監督審計及相關的合規性。聯邦機構與被審計單位地區的地理位置通常不是這種指定的決定性因素。
235
significant related-party transactions not in the ordinary course of business
1. factor:
attitudes/rationalizations;
opportunities;
incentives/pressures
2.
*misstatements from fraudulent financial reporting
*misstatement arising from the misappropriation of assets
opportunities-fraud financial reporting
發生的條款與普通商業交易中通常發生的條款不同。 關聯方交易的獨特性和複雜性可能為欺詐性報告交易提供機會
236
promotions, compensation, or other rewards inconsistent with expectations
1. factor:
attitudes/rationalizations;
opportunities;
incentives/pressures
2.
*misstatements from fraudulent financial reporting
*misstatement arising from the misappropriation of assets
incentive-misappropriation of assets
促銷、薪酬或其他與預期不符的獎勵
當管理層的晉升、薪酬或其他獎勵與預期不一致時，可能會迫使管理層挪用資產。
來自欺詐性財務報告的錯報：
Fraud financial report性質： 涉及故意在財務報表中錯報或遺漏金額或披露，以欺騙財務報表使用者。它通常涉及管理層或員工操縱會計記錄、進行欺騙性財務實踐或更改財務文件。
Misappropriation of assets性質： 涉及公司資產的盜竊，財務報表因盜竊而被錯報。它通常涉及員工或第三方竊取或濫用組織的資產。
237
significant bank accounts in tax-haven jurisdictions for which there appears to be no clear business justification
1. factor:
attitudes/rationalizations;
opportunities;
incentives/pressures
2.
*misstatements from fraudulent financial reporting
*misstatement arising from the misappropriation of assets
opportunity- fraud
避稅天堂司法管轄區的重要銀行帳戶似乎沒有明確的商業理由，這為欺詐性報告數字創造了機會。 例如，一些司法管轄區為外國企業提供財務保密，允許企業隱藏其中的資產
238
inadequate monitoring of controls, including automated controls and controls over interim financial reporting
1. factor:
attitudes/rationalizations;
opportunities;
incentives/pressures
2.
*misstatements from fraudulent financial reporting
*misstatement arising from the misappropriation of assets
opportunities- fraud
對控制措施（包括自動控制措施和對中期財務報告的控制）的監控不充分，為員工提供了參與欺詐性財務報告的機會。
239
in performing tests concerning the granting of stock options, and auditor should:
1. trace the authorization for the transaction to a vote of the board of directors
2. confirm the transaction with the secretary of state in the state of incorporation
<1>
在執行有關授予股票選擇權的測試時，審計員應該：
1. **追蹤交易的授權至董事會的投票。**
這是為什麼這個選項是合適的：
- **董事會授權：** 授予股票選擇權通常需要公司董事會的正式批准。審計員需要驗證這類交易是否得到了適當的授權，以確保它們是合法的並且符合公司政策和相關法規。
- **審計軌跡：** 追蹤授權回到董事會的投票為審計提供了清晰的軌跡。這有助於驗證選擇權的授予是否得到了適當的批准和記錄，以及是否符合董事會設定的條款和條件。
第二個選項，與公司註冊所在州的州務卿確認交易，與這個情境相關性較低。州務卿辦公室通常處理與公司法律地位和公司檔案有關的事務，但不直接參與股票選擇權授予的內部授權過程。因此，雖然州的記錄可能證實了公司的存在和法律地位，但它們通常不會提供有關股票選擇權等特定內部交易的信息。
240
which would be effective in offsetting the tendency of sales personnel to maximize sales volume at the expense of high bad debt write-offs?
1. Employees involved in the credit granting function are separated from the sales function
2. employees responsible for authorizing sales and bad debt write-offs are denied access to cash
<1>
為了抵消銷售人員為了最大化銷售量而導致高額壞賬沖銷的傾向，有效的措施將是：
1. **負責授信功能的員工與銷售功能分開。**
這個選項為何有效的原因：
- **職責分離：** 將授信功能與銷售功能分開有助於保持對信用決策的客觀和平衡。銷售人員通常專注於增加銷售，這可能導致他們向信用不良的客戶延伸信用。如果同一個人或部門負責銷售和信用決策，這可能導致利益衝突並增加壞賬風險。
- **客觀的信用評估：** 通過設立獨立的信用部門或人員，公司確保信用決策是基於健全的信用政策和客戶信用狀況，而不是銷售目標來做出的。這減少了向高風險客戶授信的可能性，從而降低了壞賬沖銷的潛力。
第二個選項，禁止負責授權銷售和壞賬沖銷的員工接觸現金，更多地與防止資產挪用和欺詐有關，而不是直接解決由於積極銷售實踐導致的高額壞賬沖銷問題。
241
by ensuring that credit approval is obtained before goods are shipped to customers, the auditor is testing:
1. rights and obligations
2. valuation and allocation
<2>
確保在將貨物運送給客戶之前獲得信用批准，審計員測試的是：
2. **估值和分配。**
這個選項為何相關的原因：
- **估值和分配：** 確保在貨物發送前獲得信用批准主要與應收賬款和銷售的估值相關。它是關於驗證銷售是向可能支付的客戶進行的，這影響了銷售和應收賬款的估值。如果信用評估不當，存在記錄可能無法收到付款的銷售的風險，導致收入和應收賬款的潛在高估。
- **評估信用風險：** 通過測試發貨前是否有信用批准，審計員實際上確保公司採取適當措施評估和管理信用風險。這對於銷售和應收賬款的準確估值至關重要。
如果重點是確定公司是否擁有所認可收入的權利或與所售貨物相關的義務，例如保證或退貨，則“權利和義務”選項更為相關。然而，在貨物發送前信用批准的背景下，重點更多地在於銷售和應收賬款的估值，使得“估值和分配”成為更相關的主張。
242
which type of sampling allows an auditor to quantify sampling risk?
1. attribute
2. stratified nonstatical
<1>
以下是將上述內容翻譯成繁體中文：
允許審計員量化抽樣風險的抽樣類型是屬性抽樣。
1. **屬性抽樣**：這種方法主要用於內部控制的審計測試。它旨在估計一個特定特徵（或屬性）在整體人群中的發生率。例如，審計員可能使用屬性抽樣來確定未經適當授權處理的交易比例。屬性抽樣的關鍵點是它允許審計員量化抽樣風險，即樣本結果不代表整個人群的風險。
2. **分層非統計抽樣**：這種方法涉及將人群分成子群體或層，並分別對每一層進行抽樣。分層通常基於某些特徵或標準。雖然分層非統計抽樣可以通過專注於特定的人群子集來提供更詳細的洞察，但它不像屬性抽樣那樣固有地允許量化抽樣風險。這是因為非統計抽樣並不像統計方法那樣使用概率法則，因此基於樣本對人群進行概率推斷變得更加困難。
總之，屬性抽樣是一種提供量化抽樣風險能力的方法，這在審計中非常重要，以確保審計發現的可靠性和有效性。
243
which is not a step of assessment the controls are operating effectively ?
1. consider whether control activities can have a pervasive effect on financial statement assertions
2. perform tests of details of transactions to detect material misstatements in the financial statements
<2>
評估控制是否有效運作的過程中不包括以下哪一步？
2. **執行交易細節測試以檢測財務報表中的重大錯誤陳述。**
這一選項描述的過程更符合實質性測試，而不是測試控制的有效性。實質性測試，包括交易細節測試，旨在檢測財務報表斷言層面的重大錯誤陳述。這種測試更多是關於審查實際的財務記錄和交易，以確保它們是準確和完整的。
相比之下，評估控制是否有效運作（如第1項所述）涉及評估控制活動的設計和實施，以及它們防止或檢測和糾正可能影響財務報表斷言的錯誤或欺詐的能力。這通常涉及測試控制活動本身（例如授權程序、對賬等），以查看它們是否被一致和有效地應用。
因此，雖然這兩者都是審計過程中的重要部分，但執行交易細節的測試是評估控制有效性的一個獨立步驟。
244
which of the following procedures would an auditor most likely use to identify unusual year-end transactions?
1. performing analytical procedures
2. obtaining a legal inquiry letter
<1>
1--> unusual transaction
2-->contingent liabilities and other legal matters
245
in assessing control risk, an auditor ordinarily selects from a variety of techniques, including:
1. inquiry and analytical procedures
2. performance and observation
<2>
1--> Understanding the business and identifying areas of potential risk or misstatement
2-->執行和觀察：這種技術涉及審計員通過執行（performance）和觀察客戶員工如何執行（observation）來主動測試實體的內部控制程序。這種親身實踐的方法使審計員能夠直接評估控制活動的有效性，這對於評估控制風險至關重要。通過觀察和執行控制，審計員可以深入了解控制措施的設計以及它們是否被一致且有效地應用。
246
which is the primary objective of probability proportional to sample size?
1. to identify overstatement errors
2. to identify items where controls were not properly applied
3. to identify zero and negative balances
<1>
概率與樣本大小成比例（PPS）抽樣的主要目標是：
1. **識別夸大錯誤。**
PPS抽樣是一種技術，其中總體中的每一美元都有相等的機會被選入樣本。這種方法在識別夸大錯誤方面特別有效，因為更大的金額有更高的被選中概率。因此，如果高價值項目中存在重大的夸大陳述，PPS抽樣更有可能檢測到它們。
2. **識別未正確應用控制的項目：** 雖然識別控制弱點是審計的重要方面，但PPS抽樣並非專門為此目的而設計。這一目標更符合控制測試，審計員在其中評估控制是否設計和實施得足以防止或檢測和糾正錯誤陳述。PPS抽樣專注於財務報表中的金額，主要用於識別這些金額中可能的夸大錯誤，而不是評估控制本身的應用。
3. 識別零和負餘額：PPS抽樣並不適合識別零和負餘額，因為這些項目由於它們的貨幣價值低（或為零），所以被選中的概率較低（或為零）。PPS抽樣本質上關注具有貨幣價值的項目，因此更有效於識別重要餘額中的錯誤，而不是零或負餘額。
總之，PPS抽樣的主要目標是識別財務報表中的夸大錯誤，特別是通過針對更大的金額，這些金額在總體中有較高風險的重大錯誤。
247
which is correct about probability proportional to size sampling?
1. the sampling interval is calculated by dividing the number of physical units in the population by the sample size
2. the auditor controls the risk of incorrect acceptance by specifying that risk level for the sampling plan
<2>
1-->classical variables sampling
2-->PPS抽樣中，抽樣間隔是通過將總體的總帳面價值除以樣本大小來確定的。由於PPS抽樣涉及總體中的每一美元都有同等的被選中機會，因此重點是單位的價值，而不是它們的物理計數。
248
which would be the advantage of using variable sampling?
1. the selection of negative balances requires no special design considerations
2. the sample will result in a smaller sample size if few errors are expected
<1>
2--> probability-proportional to size sampling(PPS)
249
What should an auditor communicate to management within the engagement letter?
1. arrangements involving a predecessor auditor
2. indications of adverse key financial rations
<1>
The engagement letter is more about setting the framework and expectations for the audit
250
which of the following statements concerning control risk is correct?
1. assessing control risk and obtaining an understanding of an entity's system of internal control may be performed concurrently
2. control risk may be assessed sufficiently low to eliminate substantive testing for significant transaction classes.
<1>
251
test the details to detect a possible understatement of sales, the auditor most likely would trace transactions from the:
1. shipping documents to the sales invoices
2. sales invoices to the shipping documents
<1>
understatement in sales
-->completeness(如果發現低估，就是銷售沒有記帳，所以是完整性的問題）
--> doc -> financial record
252
AP department should:
1. obliterate the quantity ordered on the receiving department copy of the purchase order
2. establish the agreement of the vendor's invoice with the receiving report and purchase order
<2>
**確立供應商發票與收貨報告和採購訂單的一致性。**
這項行動是AP過程中的一個關鍵控制活動：
- 它確保從供應商收到的發票與實際收到的商品或服務（如收貨報告中所記載）以及原始訂單（如採購訂單所示）相匹配。這個驗證過程有助於防止多付款、重複付款和支付未收到或未訂購的商品或服務的款項。
另一方面：
1. **在收貨部門的採購訂單副本上塗抹訂購數量：** 這一行為並不可取，因為它可能會刪除重要的審計軌跡信息，並妨礙驗證收到的數量與訂購的數量是否一致的能力。維持完整和準確的記錄對於有效的審計和控制流程至關重要。收貨部門需要訪問訂購數量信息，以便正確核對收到的物品與訂購的物品是否一致。
253
an auditor confirmed accounts receivable as of an interim date,, and all confirmations were returned and appeared reasonable. which of the following additional procedures most likely should be performed at year-end?
1. review supporting documents for new large balances occurring after interim date, and evaluate any significant changes in balances at year-end
2. review cash collections subsequent to the interim date and the year-end.
<1>
當審計程序在年底之前進行時，確實需要進行額外的步驟，以將這些中期結論延伸至年底。在這種情況下，選項1成為更合適的選擇：
1. **審查中期日期之後出現的新的大筆餘額的支持文件，以及評估年終時餘額的任何重大變化。**
這種方法非常重要，原因如下：
- **測試新的大筆餘額**：在中期審計日期之後出現的任何大筆餘額都需要仔細檢查，以確保它們是有效的。審查這些餘額的支持文件有助於確認它們的真實性和準確性。
- **評估餘額變化**：從中期日期到年終的帳戶餘額的顯著波動或變化可能表明錯誤、欺詐或業務變化，需要進一步調查。
這種方法有助於確保財務報表準確反映公司在年底的財務狀況，特別是關於應收帳款和其他重大餘額。
總結來說，雖然審查中期日期之後的現金收集情況是一個重要的程序，但在進行了中期審計程序的情況下，年終的主要焦點應該是審查新的大筆餘額和評估餘額的重大變化。
254
tracing shipping documents to prenumbered sales invoices provides evidence that:
1. all renumbered sales invoices were accounted for
2. shipments to customers were properly invoiced
<2>
Tracing from Shipping to Invoices checks if every shipment was billed (Accuracy).
Tracing from Invoices to Shipping checks if every invoice had a shipment (Completeness).
255
the purpose of tracing a sample of inventory tags to a client's computerized listing of inventory items is to determine whether the inventory items:
1. included on the listing were properly counted
2. represented by tags were included on the listing
<2>
sample tag(sources)--> list(document)
--> completeness
1-->此目標與從庫存清單追溯到實際庫存標籤或執行實際庫存盤點更相關。 此方法透過確認庫存記錄中列出的物品實際存在並正確計數來驗證它們的準確性和存在性。
256
under which of the following conditions may an auditor's observation procedure for inventory be performed during or after the end of the period under audit?
1. when the auditor finds minimal variations in client records and test counts in prior periods
2. when well-kept perpetual inventory records are checked by the client periodically by comparisons with physical counts
<2>
審計員的庫存觀察程序可以在被審計期間結束期間或之後進行，在以下情況下：
2. **當客戶定期通過與實際盤點相比較來檢查良好保存的持續性庫存記錄時。**
這種情況適合，因為：
- 良好維護的持續性庫存記錄，定期通過實物盤點進行驗證，為庫存交易和餘額提供了可靠的連續記錄。
- 如果客戶定期將這些記錄與實際的物理盤點進行比較，並且審計員審查並測試這些比較，則可以提供足夠的保證，認為整年的庫存記錄是準確的。
- 因此，審計員可以在年終之後進行庫存觀察程序，並有信心認為持續性庫存記錄準確地反映了實際在手庫存。
另一方面：
1. **當審計員在先前期間發現客戶記錄和測試計數的差異很小時**：雖然先前期間的微小差異提供了一定程度的保證，但它們本身並不足以證明推遲庫存觀察是合理的。審計員仍然需要關於庫存記錄和流程可靠性的當前證據，以決定何時進行觀察。過去的微小差異並不保證當前期間同樣的準確性，尤其是在沒有像良好維護的持續性庫存記錄這樣的持續檢查系統的情況下。
257
when an auditor does not receive replies to positive requires for year-end accounts receivable confirmation, the auditor would not:
1. increase the assessed level of detection risk for the valuation assertion
2. search for subsequent cash receipts
<1>
1-->the auditor would only increase detection risk in response to a decrease in inherent and control risk
當審計員未收到對年底應收帳款確認的積極回覆時，審計員不會：
提高對估值主張的檢測風險評估水平。
未收到積極確認請求的回覆並不直接導致提高對應收帳款估值主張的檢測風險評估水平。相反，這促使審計員執行替代審計程序。以下是通常會發生的情況：
審計員將進行替代程序，例如檢查後續的現金收款、運輸文件或其他支持文件，以收集有關應收帳款存在和估值的足夠適當的審計證據。
對積極確認的缺乏回應確實引起了關注，並需要進一步調查，但這並不會自動增加檢測風險。相反，它可能導致重新評估與應收帳款相關的風險，並需要進行更多的實質性測試。
258
which would cause a CPA not to accept a new audit engagement?
1. the inability to review the predecessor auditor's working papers
2. the prospective client's unwillingness to permit inquiry of its legal counsel
<2>
259
A CPA firm would best provide itself reasonable assurance of meeting its responsibility to offer professional services that conform with professional standards by:
1. maintaining a comprehensive system of quality control that is suitably designed in relation to its organizational structure
2. assessing the risk that errors and fraud may cause the financial statements to contain material misstatements
<1>
一家會計師事務所為了合理確保其提供的專業服務符合專業標準的責任，最佳的做法是：
1. **維護一套與其組織結構相適應的全面質量控制系統。**
這個選項最為有效，因為：
- 全面的質量控制系統涵蓋了會計師事務所運營的各個方面，包括遵守專業標準、員工培訓和能力、客戶接受和持續性、執行業務和監控。
- 這樣的系統旨在確保事務所在所有服務中始終應用專業標準，無論特定業務或客戶的個別特點如何。
- 該系統與事務所的組織結構相關的設計，使其能夠有效地融入事務所的流程中，確保質量控制措施適合事務所特定的規模、複雜性和所提供服務的性質。
另一方面：
2. **評估錯誤和欺詐可能導致財務報表含有重大錯誤陳述的風險**：雖然這是會計師特別是在審計業務中的責任的重要方面，但它更多是特定業務執行的一部分，而不是確保整體遵守專業標準的廣泛方法。這種評估是審計過程的一部分，但本身並不構成事務所範圍內各項服務的全面質量控制方法。
260
an auditor should trace corporate stock issuances and treasury stock transactions to the:
1. transfer agent's records
2. minutes of the board of directors
<1>
The Board of Directors is typically responsible for authorizing stock issuances and treasury stock transactions. The minutes of the Board's meetings will contain records of these authorizations, providing key evidence that the transactions were approved at the corporate governance level.
261
the most likely result of ineffective internal control policies and procedures in the revenue cycle is that:
1. fictitious transaction could be recorded, causing an understatement of revenue and overstatement of receivable
2. final authorization of credit memos by personnel in the sales
<2>
1-> if fictitious transaction in the revenue cycle recorded, then the impact on revenues and receivables should be the same, both overstate or understate
262
which internal control procedures most likely addresses the completeness assertion for inventory?
1. receiving reports are renumbered and periodically reconciled
2. employees responsible for custody of finished goods do not perform the receiving function
<1>
適用於庫存的完整性斷言的內部控制程序是：
1. **收貨報告預先編號並定期對賬。**
這項控制程序在解決庫存的完整性斷言方面非常有效，原因如下：
- **追踪和責任歸屬**：預先編號的收貨報告為收到的所有庫存項目提供了一種序列追踪方法。這使得更容易核對所有項目，並識別是否有任何遺漏。
- **對賬過程**：定期將這些報告與庫存記錄對賬，確保所有收到的項目都在庫存系統中得到適當記錄。這一過程有助於驗證庫存記錄的完整性，並反映了所有收到的項目。
另一方面：
2. **負責保管成品的員工不執行收貨功能**：這種控制解決了職責分離問題，有助於防止庫存被盜或挪用。雖然這是一項對於保護資產和確保庫存記錄準確性至關重要的控制措施，但它更直接地與庫存控制和防止欺詐相關，而不是專門針對庫存記錄的完整性。
263
test the completeness assertion as it applies to inventory
1. performing cutoff procedures for shipping and receiving
2. scanning perpetual inventory, production, and purchasing records
<1>
cutoff--> goods in transit are appropriately included or excluded from inventory
264
1. report on the internal controls over financial reporting at a service organization: SOC 1 or SOC 2
2. report in internal control related to one or more of the Trust Services Criteria: SOC 1 or SOC 2
1,2
SOC 1和SOC 2是服務組織控制（SOC）報告的類型，旨在幫助服務組織向客戶和審計員展示其控制的有效性。這些報告由美國註冊會計師協會（AICPA）管理。以下是對每種報告的簡要解釋：
### SOC 1:
- **全稱**：服務組織控制1報告。
- **目的**：SOC 1報告主要關注與用戶實體財務報表審計相關的服務組織控制。
- **控制類型**：它們處理財務報告控制。例如，薪資處理公司會使用SOC 1報告來展示薪資交易處理的控制。
- **受眾**：主要由用戶實體的財務報表的審計員（用戶審計員）、用戶實體的管理層以及服務組織的管理層使用。
- **報告類型**：
- **類型I**：報告管理層對服務組織系統描述的公正性以及特定日期控制設計的適宜性。
- **類型II**：包括類型I中的信息，並且還包括審計員對一段時間內控制運作有效性的意見。
### SOC 2:
- **全稱**：服務組織控制2報告。
- **目的**：SOC 2報告旨在解決與服務組織運營和合規相關的控制，不僅僅是財務報告。
- **控制類型**：它們專注於信任服務原則——系統的安全性、可用性、處理完整性、機密性和隱私。例如，雲服務提供商會使用SOC 2報告來展示其系統如何確保數據安全和隱私。
- **受眾**：由對了解服務組織有關安全性、可用性、處理完整性、機密性和隱私的控制感興趣的利益相關者（如客戶、監管機構、商業夥伴）使用。
- **報告類型**：
- **類型I**：報告管理層對服務組織系統的描述以及控制設計的適宜性。
- **類型II**：與類型I類似，但還包括一段時間內控制有效性的評估。
SOC 1和SOC 2報告是組織在建立對所執行服務及相關控制的信任和信心方面的重要工具。選擇SOC 1還是SOC 2取決於提供的服務性質以及用戶實體或利益相關者的需求。
265
an auditor's honest effort in the performance of professional services in accordance with the relevant technical and professional standards is:
1. professional behavior
2. serving the public interest
<1>
審核員根據相關技術和專業標準誠實地提供專業服務
266
the concept of materialy should not be inportant to an auditor when considering the:
1.effects of a direct financial interest in the client on the CPA's indepence
2. decision whether to use positive or negative confirmations of A/R
<1>
審計員在考慮以下情況時，不應將重要性概念視為重要：
1. **CPA對客戶的直接財務利益對其獨立性的影響。**
在談到審計員獨立性的背景下，以下幾點是相關的：
- **審計員獨立性**：CPA的獨立性是專業審計標準的基石。這必須在事實上和外觀上都保持。無論金額或重要性大小，任何對客戶的直接財務利益都會損害審計員的獨立性。在這裡，重要性概念不適用，因為任何程度的直接財務利益都會造成利益衝突並損害獨立性。
- **道德和專業標準**：專業和道德標準規定審計員必須免於利益衝突和可能影響審計判斷的任何偏見。對客戶的財務利益代表對這些標準的重大威脅。
另一方面：
2. **決定是否使用應收賬款的積極或消極確認**：在這種情況下，重要性概念確實很重要。在積極和消極確認程序之間的選擇取決於諸如應收賬款的規模和性質、重大錯誤陳述的風險以及客戶內部控制的可靠性等因素。重要性在評估這些因素和確定最適合的確認類型方面起著關鍵作用。
267
indirect financial interest
1. an investment held in a blind trust
2. an investment held in a retirement plan
3. an investment held through a regulated mutual fund
4. an investment held through participation in an investment club
<3>
other indirect interest:
removed relationship: such as owning shares in a mutual fund that owns stock in a corporate client
268
which is correct?
1. the auditor must communicate to the audit committee, in writing, regarding the proposed tax services and related fees
2. the auditor must communicate to the audit committee, in writing, when the proposed tax services involve contingent fee arrangement
<1>
269
unaudited financial statements for the prior year presented in comparative form with audited financial statements for the current year should be clearly marked to indicate their status and
ⅰ. the report on the prior period should be reissued to accompany the current period report
ⅱ. the report on the current period should include as a separate paragraph a description of the responsibility assumed for the prior period's financial statements
either 1 or 2
以與本年度經審計的財務報表進行比較的形式提出的上一年度未經審計的財務報表應明確標明其狀況和
ⅰ. 上期報告應與本期報告一起重新印發
二. 本期報告應作為一個單獨的段落說明對上期財務報表所承擔的責任
270
the account is required to:
1. reevaluate the entity's internal control over financial reporting
2. determine that the computation of the pro format adjustments are mathematically correct
2
271
when an auditor is asked to issue a report on a client's compliance with contractual agreements or regulatory requirements in connection with a financial statement audit, which is correct?
1. the auditor may only issue negative assurance on compliance and an audit of the client's financial statements is not required
2. the auditor must have audited the client's financial statements and may only issue negative assurance on compliance
<2>
當審計員被要求在與財務報表審計相關的情況下對客戶遵守合約協議或監管要求發表報告時，正確的做法是：
2. **審計員必須已經審計了客戶的財務報表，並且只能對遵守情況發表消極保證。**
這種做法基於以下幾點考慮：
- **與財務報表審計的聯繫**：為了對遵守情況發表報告，審計員通常需要已經審計了客戶的財務報表。這是因為審計員在財務報表審計過程中獲得的對客戶財務報表和內部控制的了解，對於評估與特定合約或監管要求的遵守情況至關重要。
- **消極保證**：在遵守報告的背景下，審計員通常提供消極保證。這意味著審計員聲明，基於對財務報表的審計，沒有什麼使他們相信客戶沒有遵守指定的要求。需要注意的是，消極保證與積極保證（即聲明客戶已遵守）不同；它更多是一種基於審計沒有發現不遵守證據的聲明。
- **審計範圍的限制**：財務報表的審計旨在提供合理保證，確保財務報表沒有因欺詐或錯誤而發生重大錯誤陳述。它並不一定旨在對所有合約協議或監管要求的遵守提供保證，儘管在審計財務報表的過程中可能涵蓋了遵守的某些方面。
因此，審計員對遵守情況的報告能力通常僅限於提供消極保證，並取決於已經審計了客戶的財務報表。
272
a report on agree-upon procedures should contain:
1. a separate paragraph describing the effectiveness of the internal controls
2. a disclaimer of responsibility for the sufficiency of those procedures.
<2>
1--> not included in agree-upon procedure reports. and opinion is not provide!
273
Government Audit Standards define three types of engagements:
1.
2.
3.
1. financial audits
2. attest engagements
3. performance audits
274
in which engagements would a practitioner provide limited assurance about the possible significant effects on the historical financial statements if a change in capitalization has occurred at an earlier date?
1. an examination of the management's discussion and analysis
2. a review of pro format financial information
<2>
在以下業務中，從業者將提供有關更早日期資本化變更對歷史財務報表可能產生的重大影響的有限保證：
2. **對假設財務資訊的審查。**
在此背景下：
- **假設財務資訊**：對假設財務資訊的審查通常涉及評估對歷史財務報表的假設性調整，如資本化的變更。從業者審查這種變更如果在較早日期發生，對歷史財務報表會有怎樣的影響。此類業務中提供的保證是有限的，意味著從業者不進行審計，而是執行程序以提供適度保證，確保假設財務資訊按適用標準（通常在會計標準或法規中找到）編制。
- **有限保證**：在審查業務中，從業者主要進行詢問和分析程序，而不是審計中要求的廣泛證據檢查。目標是根據審查得出結論，判斷是否有任何情況引起從業者的注意，使其相信假設財務資訊並非按適用標準全面編制。
另一方面：
1. **對管理層討論與分析的審查**：這類業務涉及更深入的程序，如了解MD&A編制方法並評估整體呈現。雖然它可能涵蓋財務績效和狀況的某些方面，但它並非專門聚焦於提供對資本化變更對歷史財務報表影響的保證。
275
how does Title 2 of the Code of Federal Regulations (containing single audit requirements ) define a subrecipient?
1. as a nonfederal entity that provides a federal award to another entity to carry out a federal program
2. as a nonfederal entity that expends federal awards received from another entity to carry out a federal program
<2>
根據包含單一審計要求的《聯邦法規匯編》第2卷的定義，分擔者（subrecipient）被定義為：
2. **一個非聯邦實體，它使用從另一個實體接收的聯邦獎助金來執行一個聯邦計劃。**
這個定義包括以下關鍵方面：
- **非聯邦實體**：分擔者是一個不是聯邦機構的組織。這可能包括州和地方政府、非營利組織、大學或其他私人實體。
- **支出聯邦獎助金**：定義分擔者的關鍵因素是使用收到的聯邦資金來執行計劃目標。分擔者從另一個實體（通常是一個通過實體，如州政府或直接從聯邦政府接收資金的非營利組織）接收這些資金，然後使用它們來進行實現聯邦計劃目標的活動。
- **執行聯邦計劃**：分擔者負責程序決策和遵守適用的聯邦計劃要求。這意味著他們對如何使用資金來實現計劃目標具有一定的自主權和決策權。
相比之下：
1. **一個非聯邦實體，它向另一個實體提供聯邦獎助金來執行一個聯邦計劃**：這種描述更準確地適用於“通過實體”（pass-through entity），而不是分擔者。通過實體是將聯邦資金分發給分擔者的實體。
276
GAS(yellow book) differs from reporting gender GAAS. GAS requires auditor to:
1. describe the scope of the auditor's principal substantive test
2. present the result of the auditor's test of control
3. provide negative assurance that the auditor discovered no evidence of intentional override of internal controls
<2>
2--> The report on the audit of financial statements should describe the scope of the auditor's testing of compliance with laws and regulations and internal control over financial reporting, and present the results of those tests.
GAAS（通用審計準則）和GAS（政府審計準則，通常被稱為“黃皮書”）的報告之間的主要差異源於被審計實體的性質和審計的目標。以下是主要差異的概述：
### GAAS (通用審計準則):
- **由誰制定**：美國註冊會計師協會（AICPA）。
- **適用範圍**：主要用於私營部門實體。
- **重點**：GAAS著重於提供對財務報表公允性的保證。主要目標是確定財務報表是否無重大錯誤陳述，無論是因為欺詐還是錯誤。
- **報告**：根據GAAS的審計報告通常包括對財務報表的意見、審計範圍的描述以及審計員的發現。
- **組件**：GAAS基於諸如審計員獨立性、適當專業護理以及計劃和監督等基本原則。
### GAS (政府審計準則):
- **由誰制定**：美國政府問責辦公室（GAO）。
- **適用範圍**：適用於政府實體和接受政府資助的組織。
- **重點**：GAS的範圍比GAAS更廣。雖然它包括基本的財務審計，但它還強調遵守法律法規和對財務報告的內部控制的有效性。此外，GAS還包括績效審計，重點是政府計劃的有效性和效率。
- **報告**：GAS的報告通常包括對財務報表的意見、對內部控制的評估、對遵守法律法規的評估，有時還包括對績效審計的報告。
- **組件**：GAS包括與GAAS類似的原則，但更強調公眾利益、政府責任的需求以及持續專業教育和報告的額外要求。
總結來說，雖然GAAS和GAS都提供了進行審計的框架，但GAS在其範圍上更為全面，不僅關注財務準確性，還關注合規性、有效性和效率，特別是在政府和公共資助實體的背景下。
277
the penalty for altering(destroying, covering up) documents falls under Title VILL of the Sarbanes-Oxley Act is up to ___ years
20
5 years --> upper bound for the statute of limitations for security fraud安全詐欺訴訟時效上限
10 years-->penalty to auditors for not retaining their work papers for seven years after the end of the fiscal period in which the audit or review was conducted對審計師在進行審計或審查的財務期間結束後七年內未保留其工作底稿的處罰
278
What does an accoutant male implicity when issuing the standard report for the compilation of a nonissuer's financial statements?
1. the financial statements have not been audited
2. the accountant is independent with respect to the entity
<2>
在編制非發行實體財務報表的標準報告時，如果會計師不具備獨立性，他們必須在編制報告中明確披露這種缺乏獨立性。否則，獨立性被認為是默示的。在這種情況下，您應該選擇：
2. **會計師對於該實體具有獨立性。**
這裡的理由是：
- **明確披露要求**：如果缺乏獨立性，會計師必須在編制報告中明確陳述這一點。如果沒有這樣的陳述，通常意味著會計師聲稱他們對客戶保持獨立性。
- **默示獨立性**：當沒有關於缺乏獨立性的陳述時，通常理解（或默示）會計師對於該實體是獨立的。這是因為專業標準中的默認假設是會計師保持獨立性，除非另有聲明。
- **在編制報告中的重要性**：雖然進行編制業務不要求具備獨立性，但披露獨立性或缺乏獨立性對於財務報表的使用者了解會計師與實體之間的關係至關重要，這可能會影響對編制財務報表的客觀性的感知。
因此，在編制非發行實體財務報表的標準報告中，如果沒有明確披露缺乏獨立性，則默示會計師對該實體是獨立的。
1-->明示NOT暗示
279
which would not be conducted in a review?
1. comparing the financial statements with anticipated results in budgets and forecasts
2. observing the safeguards over access to and use of assets and records
<2>
1--> Analytical procedure, comparisons of F/S, study relationship
2--> internal control is not conducted in a review
280
a review of interim financial information of a publicly held company is conducted in accordance with
1. PCAOB standards apply
2. PCAOB and SSARS
3. standards for Accounting and review Services apply
<1>
281
a CPA firm may or may not disclose the names of its clients without the client's express permission?
1. may disclose unless disclosure would suggest that the client may be experiencing financial difficulties
2. may not disclose this information because the identity of its clients is confidential information
<1>
282
which organizedtions was established by the Sarbanes-Oxley Act of 2002 to control the auditing profession?
1. committee of sponsoring organizations(COSO)
2. Public Company Accounting Oversight Board(PCAOB)
<2>
283
each page of a nonissuer's financial statements review by an accountant should be include the reference?
1. review, no accountant's assurance exoressed
2. see independent accountan's review report
<2>
284
According to the COSO of the Treadway Commission, which components of the internal control integrated framework addresses an entity's deployment of policies and procedures?
1. control activities
2. control environment
<2>政策和程序部署
the control activities component of the internal control integrated framework includes principles such as deployment of policies and procedures and the selection and development of controls around information technology
monitoring--> components of the internal control integrated framework addresses an entity's timely reporting of identified internal control deficiencies
內部控制綜合框架的組成部分解決了實體及時報告已識別的內部控制缺陷的問題
285
in planning an audit, the auditor's knowledge about the design of relevant control should be used to:
1. determine whether controls have been circumvented by conclusion
2, identify the type of potential misstatements that could occur.
<2>
在規劃審計時，審計師對相關控制設計的了解應用於：
2. 識別可能發生的錯報類型。
了解內部控制的設計對於審計師來說，在識別財務報表中可能發生錯誤或欺詐的領域至關重要。通過了解控制措施如何設計來預防、檢測或糾正錯報，審計師可以更有效地將努力集中在風險較高的領域。這種知識使他們能夠通過識別可能的錯報類型並決定在哪裡應用更嚴格的審計程序來規劃審計。
通過結論確定控制是否已被繞過（選項1）更多地與在審計過程中評估控制的有效性相關，而不是在規劃階段。在規劃階段，重點是了解控制應如何運作以及它們緩解的風險，這直接有助於識別可能的錯報類型。
286
which should not be performed by a single individual in a company with the most effective segregation of duties in place?
1. approving sales returns on customers' accounts and depositing customers' checks in the bank
2. preparing monthly customer statements and maintaining the accounts payable subsidiary ledger.
<1>
在一個實行最有效的職責分離的公司中，不應由單一個人執行的任務是：
1. 批准客戶賬戶上的銷售退貨和將客戶支票存入銀行。
職責分離是一項關鍵的內部控制原則，旨在防止欺詐和錯誤。該原則規定，沒有任何個人應該控制兩個或更多階段的交易或操作，這可能讓他們既能進行也能隱藏錯誤或欺詐行為。
在選項1中，讓同一個人批准銷售退貨和存入客戶支票，創造了欺詐或資產挪用的風險。這個人可能會批准非法的銷售退貨，然後錯誤地退還資金或操縱存款。
選項2，涉及準備每月客戶對賬單和維護應付賬款子賬簿，雖然不理想，但與選項1相比，在職責分離方面的風險較小。這是因為客戶對賬單（與應收賬款有關）和應付賬款是不同的領域，且在一個領域中的錯誤或欺詐不一定會被另一個領域的職責隱藏。
因此，為了最有效的職責分離，選項1中的任務不應由單一個人執行。
287
if an auditor decides to mention the specialist in the report, the report must indicate that
1. the reference to the auditor's specialist does not reduce the auditor's responsibility for that opinion
2. the auditor planned and evaluated the adequacy of the specialist's work
<1>
當審計師決定在審計報告中提及專家時，理解這種提及的含義是重要的。這裡的關鍵點是關於審計師對審計意見的責任：
1. **提及審計師的專家並不減少審計師對該意見的責任**：這是正確的。無論是否使用專家，審計師對審計意見的責任保持不變。審計師仍對審計的整體進行以及對財務報表的審計意見負有責任。在報告中提及專家並不將這一責任的任何部分轉移給專家。
2. **審計師計劃並評估了專家工作的充分性**：雖然這一說法在實踐中可能是真實的，因為審計師確實需要計劃和評估他們使用的任何專家的工作，但這並不是審計報告中關於專家應該傳達的重點。審計報告中的主要關注點是澄清，審計師對審計意見的責任並未因專家的參與而減少。報告通常不詳細說明審計師在計劃和評估專家工作方面的過程，因為這是審計師在進行審計時的整體評估和判斷的一部分。
總結來說，當在審計報告中提及專家時，選項2並非所傳達信息的重點。強調的是維持審計師對審計意見的全部責任，無論專家的參與如何。
288
the sample size in an attribute sampling application is affected by
1.
2.
3.
1. allowable risk of assessing control risk too low
2. the tolerable deviation
3. expected deviation rate
289
which of the following is the best way to compensate for the lack of adequate segregation of duties in a small organization?
1. disclosing the lack of segregation of duties to the external auditors during the annual review
2. allowing for greater management oversight of incompatible activities
<2>
1--> 向外部審計師揭露此事是謹慎的做法，但作為補償性控制並無幫助
290
To determine whether a service auditor's report is a Type 1 or Type 2 report under the standards for Service Organization Control (SOC) reports, you can look for specific keywords and characteristics in the report:
Type 1 Report:
Type 2 Report:
1. **Type 1 Report**:
- **Focus**: A Type 1 report evaluates the suitability of the design of controls at a specific point in time.
- **Key Words**: Look for phrases like "design of controls" and "as of [specific date]". The report will typically state that it assesses whether the service organization's control design is suitable to meet specified control objectives as of a certain date.
- **Characteristics**: contain a disclaimer of opinion on the operating effectiveness of control
2. **Type 2 Report**:
- **Focus**: A Type 2 report evaluates the effectiveness of the controls over a period of time.
- **Key Words**: Look for phrases like "operating effectiveness" and "over the period [start date] to [end date]". The report will typically mention that it assesses the operational effectiveness of the controls over a stated period.
- **Characteristics**: It includes both the design and implementation of controls, as well as the operational effectiveness of these controls over a specific period.
291
which would an auditor perform regarding litigation?
1. discuss with management its policies and procedures for identifying and evaluating litigation
2. inspect the legal documents in the client's lawyer's possession regarding pending litigation
<1>
在審計過程中處理訴訟問題時，審計師通常會進行以下操作：
1. **與管理層討論其識別和評估訴訟的政策和程序**：這是審計師的一項常見且必要的程序。審計師會與管理層討論他們如何識別、評估和會計處理訴訟和索賠。了解管理層在這方面的政策和程序對於評估訴訟的可能性及其對財務報表的潛在影響至關重要。審計師需要了解公司如何監控訴訟，如何評估不利結果的可能性，以及如何估算潛在的財務影響。
2. **檢查客戶律師持有的關於待決訴訟的法律文件**：這個選項雖然可能很有價值，但不是常見的做法，且可能並不總是可行或適當的。審計師通常依賴管理層提供有關訴訟的相關信息，包括公司律師的法律意見或摘要。由於保密和法律特權的考慮，審計師直接訪問客戶律師及其文件並非標準做法。相反，審計師通常要求客戶的管理層與公司的法律顧問溝通，以獲得有關訴訟和索賠的信息，然後提供給審計師。
292
in order to increase the reliability of the electronic confirmation responses, the auditor should:
1. directly contact the customer to validate the identity and accuracy of information received
2. send out second confirmation requests and request a manual response
<1>
Verification of Source
Use of Digital Signatures
Direct Confirmation
Cross-Verification
2-->如果由於適當的驗證過程（如之前提及的）而認為初始的電子回應是可靠的，則可能不需要進行第二輪確認。特別是在審計師已經驗證了來源、使用了數字簽名並採用了其他方法來確保回應的準確性和真實性的情況下。
293
which would indicate that the economy is in an expansionary phase?
1. Businesses increase capital investment
2. potential national income will exceed actual national income
<1>
2-->actual GDP >long-term(potential) growth trend
294
we disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements.
the statement is from:
1. report on internal control
2. management representation letter
我們向您披露了所有已知的違法或懷疑違法情況，這些情況在準備財務報表時應予以考慮。
管理層陳述信函（Management Representation Letter）確實是在審計過程的最後階段，由企業的管理層發給審計師的。這封信的目的是為了讓管理層對於財務報表的準確性和完整性做出正式聲明，包括確認他們已提供所有相關信息，並披露任何可能影響財務報表的重要事項，例如違法或懷疑違法的行為。
至於您提到的語句出現在管理層陳述信函中的原因，是因為管理層需要向審計師保證他們已披露所有已知的違法行為，以及這些行為對財務報表可能產生的影響。這是確保財務報表準確性和完整性的一部分。
另一方面，委託書（Engagement Letter）是在審計開始之前由審計師和客戶（被審計的企業）之間簽訂的合約。這份合約確定了審計的範圍、責任、期望和任何其他條款。雖然委託書中可能會提到合規性問題，但它通常不會像管理層陳述信函那樣具體提到管理層對已知違法行為的披露。委託書更多的是關於審計本身的安排和條款。
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a compilation of financial statements in accordance with SSARS is limited to presenting:
1. supplementary financial information that has been subjected to inquiry and analytical procedures
2. information in the form of financial statements is the representation of management
<2>
正確答案是：
2. 以財務報表形式呈現的信息是管理層的陳述。
原因：
根據會計和審核服務標準聲明（SSARS）進行的財務報表編制，會計師的角色僅限於協助管理層以財務報表的形式呈現其財務信息。這個過程不涉及對財務信息進行任何詢問或分析程序。會計師不對信息的準確性或完整性提供保證；相反，編制的財務報表基於管理層提供的信息。財務報表的主要責任在於管理層，會計師的角色是幫助以標準的財務報表格式呈現這些信息。
選項1，涉及經過詢問和分析程序的補充財務信息，opinion 1 is review not compilation
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analytical procedures used in planning an audit should focus on:
1. assessing the adequacy of the available audit evidence
2. enhancing the auditor's understanding of the client's business
<2>
1--> Because audit evidence is not gathered during the planning process, its adequacy cannot be assessed
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