Report Flashcards
(20 cards)
Rep letter
Signed by CEO. CFO. M. R. for F/S. Dated the last day of audit field work or later
Prospect F/S. vs. Pro forma. F/S
Prospective f/s. 1 forecasting ( general). 2. Projection ( hyperthetical). Pro forma f/s Derived audited or reviewed historical f/s
Compliance. Report
GAAS. GAGAS. Single act. On F/S. Internal control. Compliance
COSO
C R I M E(C) Control environment Risk assessment. Information & Cmunication system. Monitoring. Control activities - control policies & procedures
Data Query
Will access the appropriately files
PPS sampling
To identify overstatement error
Stratford sampling
Homogenous group. Smaller sample size
Test data approach.
A computerized accounting system. Generalized audit software
Attribute sampling
To determine the rate of deviation f prescribed policies and procedures
Significient deficiencies. Material weakness. Need Communication w
Same
General standard. Vs Fieldwork standard
1 adquate training and proficiencies. 2. Independent mental attitude. 3 Due professional care. Field w standard: planning and supervision
Audit documentation file
Permanent file: debt agreement I/c flow hart. Article of corp. current file:
GAO
Government accountabily office
Tolerable rate of deviation Increase. – a smaller sample size
Assigned level of control risk Decrease— deviation rate. Decrease
The risk of incorrect acceptance
Sample results fail to identify
No rep letter
Then Compilation report can be issued instead of Review
Going concern
Increase cash inflow. As mitigation plan. Dispose of asset. Reduce expenditure. Restructure debt. Increase ownership equity
GAS
Significient deficiencies. - reportable condition. - legislative regulatory body
Operational audits
The efficiency. Effectiveness of mgmts operating procedures
PCAOB inspection on firm
Firm( +100 audits) every year. Otherwise. Every 3 yes
