Flashcards in Next Quiz Mods 1-4 Deck (31):
When equipment remains on the records as an asset when it has been retired this results in...
An overstatement of equipment
Since the primary concern is whether equipment remaining on the records as assets has been retired, the auditor would...2
1 Select items of equipment from the accounting records for testing
2) these equipment items would be located in the plant and
Determined if they are still in use
Inspecting certain items of equipment in the plant and tracing those items to the accounting records are tests of completeness, which would show if the equipment account is...
A weakness in internal control over recording retirements of equipment may cause an auditor to...
Select certain items of equipment from the accounting records
And locate them in the plant
"If a difference of opinion on a practice problem existed between engagement personnel and a specialist or other consultant, was the difference resolved in accordance with firm policy and appropriately documented?"
What is the most likely source of the following question?
Partner's engagement review program
A partner's engagement review program would include a statement concerning...
A difference of opinion between engagement personnel and
Specialists or consultants
In performing an audit, the auditor may request direct assistance from the internal auditor in...3
1 obtaining an understanding of internal control
2 performing tests of controls
3 performing substantive tests
When direct assistance is provided by the internal auditor, the independent auditor should...2
1 assess the internal auditor's competence and objectivity
2 supervise, review, evaluate and test work performed by internal
Auditor's to extent appropriate in the circumstances
Generally significant deficiencies are reported at...
The conclusion of the audit
2) timely communication may be important
An auditor may communicate significant deficiencies...
During an audit or after the audit's completion
Under the clarity project, an auditor is required to understand the design and operation of internal control in order to identify types of potential misstatements, consider factors that affect the risk of material misstatements and design of auditing procedures. Therefore the auditor is not required to...
Search for significant deficiencies during the audit
An auditor's report cannot state...
"No significant deficiencies were noted"
An auditor's report can state...
"We did not identify any deficiencies in internal control that we
Consider to be material weaknesses"
The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants only establishes...
A conceptual framework
The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants has not issued...
Rules or interpretations (rulings)
The International Ethics Standards Board for Accountants (IESBA) Code of Ethics for Professional Accountants promotes compliance with 5 fundamental principles of professional ethics:
3 professional competence and due care
5 professional behavior
Good governance principles do not include which of the following?
Management and those charged with governance will be kept
Regarding fair value measurements: The auditor should evaluate the sufficiency and competence of the audit evidence obtained from auditing...2
1 Fair value measurements and disclosures
2 consistency of FV measurement evidence with other audit
evidence obtained and evaluated during the audit
To participate in the issuance of any report of the issuer, public accounting firms must...3
1 register with PCAOB
2 sign a consent statement
3 comply with request for testimony or production of documents
PCAOB Rule 3100 requires that public accounting firms comply with all applicable...
Auditing and related professional practice standards
Lead schedules are part of...
An auditor's work papers
Lead schedules are set up for...
Groups of a smaller client's accounts that will be combined into
Once account for financial statement reporting
A lead schedule can be prepared for a client's...
Subsidiary accounts receivable
A lead schedule can be prepared for a client's subsidiary accounts receivable, these are reported only as...
A single account receivable figure, not listed by customer name
Lead schedules contain information from the client's...
In creating lead schedules for an audit engagement, a CPA often uses automated work paper software. What client information is needed to begin this process?
General ledger information such as...3
1 account numbers
2 prior year account balances
3 current year unadjusted information
The nature of the walk through is meant to help the auditor determine...2
1 if a necessary control is missing or ineffective
2 different types of significant transactions handled by the process
The nature of the walk through is meant to help the auditor...
Understand the full process and determine effectiveness of controls
An auditor is not expected to perform a walk through of each and every transaction type unless...
All controls are deemed ineffective
During a walk though, the auditor questions the company's personnel about...
Their understanding of what is required by the company's
prescribed procedures and controls