Other Engagements

Question 1

Who is required to complete an audit over FS and operating effectiveness of IC?

Answer 1

Issuers

Question 2

What are the three fraud risks?

Answer 2

Opportunity
Pressure
Rationalization

Question 3

What is a top down approach used for?

Answer 3

Selecting controls to test

Question 4

What is the top down approach?

Answer 4

FS Level - Accounts - Assertions

Question 5

Entity level controls

Answer 5

Control environment, management override, company risk assessment, centralized processing

Question 6

What kind of controls can you benchmark?

Answer 6

Automated

Question 7

Audit of internal controls results in an opinion on internal control at a _______

Answer 7

point in time

Question 8

Audit of internal controls results in an opinion on FS over ______

Answer 8

Period of time

Question 9

When should control deficiencies be expressed in an integrated audit?

Answer 9

By report release date

Question 10

When should control deficiencies be expressed in a financial statement audit?

Answer 10

60 days from report release date

Question 11

What are the components of communication to management and TCWG over internal controls

Answer 11

Responsibility
Definitions of deficiencies
Restrict Use

Question 12

Who and when should the following be communicated? (Nonissuer)
Control deficiency

Answer 12

Management
60 days after report release

Question 13

Who and when should the following be communicated? (Nonissuer)
Significant deficiency

Answer 13

Management and TCWG
By report release

Question 14

Who and when should the following be communicated? (Nonissuer)
Material weakness

Answer 14

Management and TCWG
By report release

Question 15

Where is the reference to the opinion on internal control in a nonissuer report? (Separate)

Answer 15

Opinion paragraph

Question 16

What paragraph concludes the opinion on internal controls in a nonissuer report? (Separate)

Answer 16

Inherent limitations

Question 17

What kind of engagement is the following:
Examination

Answer 17

Attestation

Question 18

What kind of engagement is the following:
AUP

Answer 18

Attestation

Question 19

What kind of engagement is the following:
Review

Answer 19

Attestation

Question 20

What attest engagement can you NOT perform on Prospective FS

Answer 20

Review

Question 21

What attest engagement can you NOT perform on Compliance

Answer 21

Review

Question 22

What attest engagement can you perform a review on?

Answer 22

Pro forma and MD&A

Question 23

What rules do preparations, compilations, and reviews apply?

Answer 23

SSARS

Question 24

What rules to AUP, Prospective, Compliance, MD&A apply?

Answer 24

SSAE

Question 25

What do attest standards NOT reference

Answer 25

Historical FS or GAAP

Question 26

Attestation Risk

Answer 26

RMM * DR

Question 27

What does attestation risk not apply to?

Answer 27

AUP

Question 28

What kind of opinion does an examination provide?

Answer 28

Positive, high level of assurance

Question 29

How do you handle a scope restriction on a review?

Answer 29

Withdraw

Question 30

What are the components of an examination report?

Answer 30

Intro Scope Opinion

Question 31

What do you include in a report over the assertion for an examination?

Answer 31

We have examined management of XYZ company's assertion

Question 32

What kind of opinion does a review have?

Answer 32

Limited assurance, conclusion

Question 33

What are the components of a review report?

Answer 33

Intro Scope Conclusion

Question 34

What kind of opinion does AUP have?

Answer 34

None, list of findings

Question 35

What are the conditions for AUP?

Answer 35

I AM SURE Independence Agreement Measurability Sufficient procedures Use of report can be general or restricted Responsibility is on client Engagements must include a summary of significant assumptions

Question 36

Financial forecast

Answer 36

Expected financial results

Question 37

Financial projection

Answer 37

Hypothetical assumptions

Question 38

What prospective financial statement can be general use?

Answer 38

Forecast

Question 39

How can prospective financial statements be prepared?

Answer 39

preparation compilation examination AUP

Question 40

What guidance does preparation of prospective FS use?

Answer 40

SSARS

Question 41

What guidance does compilation of prospective FS use?

Answer 41

SSARS

Question 42

Negative Assurance

Answer 42

Nothing came to the auditor's attention that caused the auditor to believe an entity failed to comply

Question 43

SOC 1

Answer 43

evaluating impact that certain relevant controls at the service organization have on the FS of entity

Question 44

SOC 2

Answer 44

Give assurance to a broad range of users regarding the controls in place

Question 45

Type 1 report

Answer 45

Report on design and implementation of a service organization

Question 46

Type 2 report

Answer 46

Report on design, implementation, and operating effectiveness of a service organization's controls

Question 47

Criteria for Compliance Examination

Answer 47

Risk assessment design responses to risk assessment obtain written representation prepare report and documention