Pass key 3 Flashcards
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of theissuer
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of theissuer
Auditor evaluating whether the nature of transactions and balances have been disclosed clearly in the financial statements is related to which assertion?
Classification and understandability
Auditor evaluating whether the nature of transactions and balances have been disclosed clearly in the financial statements is related to which assertion?
Classification and understandability
Review of interim fin info is presented in a registration statement. A prospectus about accountants involvement should include
Accountants review report is not a “part” of reg system of Sec Act 1933
If review report presented in Reg statement, prospectus should include statement
Accountant’s review report in not a part of reg statement of Sec Act 1933
Which statement would NOT normally be included to representation letter for a review of interim Fin info
We understand that review is consist principally of performing analytical procedures and inquiries
2 critical requirements to achieving audit efficiency and effectiveness with a computer are selecting
The appropriate audit tasks for the computer and appropriate audit software to perform them
When auditing presentation and disclosure of clients payroll reporting auditor reads footnotes and other info to determine if amount appropriate. Which assertion?
Valuation, allocation, accuracy
Which is correct regarding compliance with laws and regulations in audit under Yellow Book
In some circumstances auditor is required to report fraud and and illegal acts directly to external parties
The use of the ratio estimation sampling as compared to other sampling techniques is most effective then
The calculated audit amounts are approximately proportional to the client’s book amount
An auditor expressed a qualified opinion on prior year FS because of the luck of adequate disclosure. These FS are properly restated current year. The updated report on prior year FS should
Express an unmodified opinion on the restated FS of prior year
Which of the following disclaimers of liability in response to auditor’s request can auditor rely on
Info furnished as a matter of the cortesy
After performing risk assessment an auditor decided not to perform test of controls because
It would be inefficient to perform test of controls that would result in the reduction in planed substantive test
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of the issuer.
Regarding sample size, which of the following is true?
the engagement partner increases the assessed risk of material misstatement, then the sample size will increase.
Which of the following should a practitioner perform as part of an engagement for agreed-upon procedures in accordance with Statements on Standards for Attestation Engagements?
Issue a report on findings based on specified procedures performed.
Regarding the 6 elements of an audit firm’s quality control system, which element requires there to be procedures to assess the risks involved with a potential engagement?
Acceptance and continuance of client relationships and engagements
Regarding sample size, which of the following is true?
If the auditor determines that a decrease in the tolerable misstatement is appropriate, then the sample size will increase.
Relevant assertion if auditor concerned that management understated liabilities
Completeness
Subsequent event related to entity’s internal control was discovered. Which is not auditors responsibility regarding subsequent event?
Perform test of controls of subsequent event
Which of the following questions auditor would least likely to include to questionnarie conserning initiating and execution of equipment transactions
A procedure in place to monitor and properly restrict access to equipment
When performing review in accordance with SSARS and accountant would most likely
Ask about actions taken at board of director’s meeting
When independent CPA prepared FS but not audited or reviewed them, CPA should issue disclaimer on opinion. In such situation CPA has no responsibility to apply any procedures below
Reading FS for obvious mistakes
