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AUD Flashcards > Who's Who (Players/Entities) > Flashcards

Who's Who (Players/Entities) Flashcards

1
Q

Who are the three entities under GAAP? (the Private Sector)

A

FASB
IASB
GASB

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2
Q

What standards does the FASB use

A

ASC

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3
Q

What standards does the IASB (previously IASC) use

A

IFRS (previously IAS)

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4
Q

What are the 7 players under AICPA?

A 
SAS (non-issuers)
SSAE
SSARS
ET
QC
PFP
CS
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5
Q

What standards does SAS use

A

AU

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6
Q

What standards does SSAE use

A

AT

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7
Q

What standards does SSARS use

A

AR

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8
Q

What does SAS stand for

A

Statements of Auditing Standards

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9
Q

What does SSAE stand for

A

Statements on Standards for Attestation Engagements

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10
Q

What does SSARS stand for

A

Statements on Standards for Accounting and Review Services (Compilations and Reviews)

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11
Q

What does ET stand for

A

Ethics

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12
Q

What does QC stand for

A

Quality Control

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13
Q

What does PFP stand for

A

Personal Financial Planning

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14
Q

What does CS stand for

A

Consulting Standards

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15
Q

What are the 4 US Government entities?

A

SEC
SOX (PCAOB) - issuers
GAO
DOL

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16
Q

What does GAO stand for?

A

Governmental Accountability Office

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17
Q

What does PCAOB stand for?

A

Public Accounting Oversight Board

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18
Q

What does DOL stand for?

A

Department of Labor

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19
Q

What are the 2 entities under IFAC? (International Federation of Accountants)

A

IAASB (ISA)

IESBA

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20
Q

What does IAASB stand for?

A

International Auditing and Assurance Standards Board

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21
Q

What does ISA stand for?

A

International Standards on Auditing

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22
Q

What does IESBA stand for?

A

International Ethics Standards Board for Accountants

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23
Q

T/F

The Code of Professional Conduct under AICPA is applicable to all AICPA members, even if they are not in public practice

A

T

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24
Q

IFAC issues the International Ethics Standards Board for Accountants (IESBA). What are the three parts to this code?

A

Part A: Framework applies to all professional accountants
Part B: Applies to professional accountants in public practice
Part C: Applies to professional accountants in business

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25
Q

Discuss GAAS. What does it stand for? How does it relate to SAS, ASB, AICPA, and PCAOB?

A

Generally Accepted Auditing Standards

auditor is responsible for the performance of a properly planned and executed audit

10 GAAS = criteria for an audit. Compliance with GAAS is mandatory on all audit engagements

AICPA’s ASB (auditing standards board) issues SAS (Statements on Auditing Standards) which are interpretations of GAAS. These SASs are outlined in Section AU.

SAS appy to all audits of nonissuers (nonpublic entities) and to the audits of issuers (public companies) to the extent not superseded by PCAOB Auditing Standards

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26
Q

Discuss GAGAS. What does it stand for?

A

Generally Accepted Government Auditing Standards

Audits of government organizations, programs, activities, and of entities that receive government funds should be conducted in accordance with GAGAS

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27
Q

Discuss the PCAOB. What does it stand for?

A

Public Company Accounting Oversight Board

established by SOX in 2002
establishes auditing and related professional practice standards to be used in the preparation and issuance of audit reports for “issuers”

“Issuers” consist of entities subject to the rules of the SEC (primarily public companies)

Comprised of 5 full time members:

a. 2 members must be (or have been) CPAs, and the other 3 must not be (or have been) CPAs
b. a CPA can only act as the Chair of the Board if he/she has not practiced as a CPA for the past 5 years
c. no members of the Board can receive payments from a public accounting firm (other than fixed continuing payments, such as retirement payments)

Public accounting firms must register with the PCAOB in order to audit a public company. registered firms are subject to board inspection, disciplinary proceedings, and sanctions

PCAOB Auditing Standards (AS)
PCAOB adopted ASB standards but reviews each standard to evaluate whether it should be modified, repealed, replaced, or permanently adopted
PCAOB has issued several of its own AS which replace ASB standards for audits of issuers

Note: ASB retains the authority to set performance and reporting standards for audits of financial statements of nonissuers

28
Q

Discuss IAASB. What does it stand for?

A

International Auditing and Assurance Standards Board (IAASB), a standard setting board of the International Federation of Accountants (IFAC)
establishes International Standards on Auditing (ISA)

ISAs don’t override the local laws and regulations or national standards. over 100 countries are using or in the process of adopting ISAs into their national auditing standards or are using ISAs are the basis for preparing national auditing standards

US: ASB is working to converge its standards with the IAASB’s standards

29
Q

Discuss SSAE

A

issued by the AICPA
apply to attest engagements
outlined in Section AT of the AICPA Professional Standards

30
Q

Discuss SSARS

A

Accounting and Review Services Committee was established by the AICPA - issues SSARS
establish standards for privately held companies not seeking audited statements
SSARS are applicable to unaudited F/S or unaudited financial information of a nonpublic entity
outlined in Section AR of the AICPA Professional Standards

31
Q

_____ is the authoritative body designated to promulgate financial accounting standards

A

FASB

32
Q

____ is not one of the bodies designated by the AICPA to promulgate technical standards.

A

GAO

33
Q

___ is the authoritative body designated to promulgate statements on auditing standards

A

Auditing Standards Board

34
Q

These are the measures of the quality of the auditor’s performance

A

GAAS (Generally Accepted Auditing Standards)

35
Q

The PCAOB is responsible for standards relating to:

A) Accounting
B) Attestation
C) Auditing
D) Quality Control

A

B, C, D

NOT responsible for standards relating to A

36
Q

A PCAOB engagement that focuses on a selected quality control issue is referred to as a(n)

A

Inspection

37
Q

____ establishes international auditing standards

A

International Federation of Accountants

38
Q

T/F

International auditing standards do not require an audit of internal control

A

TRUE

39
Q

T/F

International auditing standards do not allow reference to division of responsibilities in the audit report

A

TRUE

40
Q

T/F

International auditing standards require obtaining an attorney’s letter

A

FALSE

For international auditing standards, Obtaining an attorney’s letter is only required if the auditors assess a risk of material misstatement

41
Q

T/F

International auditing standards are based on a risk assessment approach

A

TRUE

42
Q

What standards would you refer to when performing a review of a nonpublic company’s annual financial statements?

A

SSARS

43
Q

What standards would you refer to when deciding whether a contingent fee may be billed to a client?

A

ET

44
Q

What standards would you refer to related to firm requirements of CPA firms that are enrolled in an AICPA-approved practice-monitoring system

A

Statements on Quality Control Standards (QC)

45
Q

What standards would you refer to for an examination of a client’s financial forecast

A

SSAE

46
Q

What standards would you refer to relating to overall requirements when providing services for an advisory services engagement

A

Consulting Services (CS)

47
Q

What standards would you refer to for the audit of a public company

A

PCAOB

48
Q

What standards would you refer to for the performance of an interim review of the quarterly financial statements of a nonpublic audit client

A

AU-C

49
Q

What standards would you refer to for reporting on client pro forma financial information

A

SSAE

50
Q

What standards would you refer to on whether an investment of a CPA impairs her independence with respect to a client

A

ET

51
Q

What standards would you refer to on performing a compilation of a nonpublic company’s quarterly statements

A

SSARS

52
Q

What guidance topic would you refer to for the following situation?

Possible Risk Factors related to misappropriation of assets

A

Fraud

53
Q

What guidance topic would you refer to for the following situation?

The relationship between materiality used for planning versus evaluation purposes

A

Materiality

54
Q

What guidance topic would you refer to for the following situation?

Client has transactions with the Corporation President’s Brother

A

Related Parties

55
Q

What guidance topic would you refer to for the following situation?

Comparing a client’s unaudited results for the year with last year’s audited results

A

Analytical Procedures

56
Q

What guidance topic would you refer to for the following situation?

Auditing and reporting guidance on the possible need to reaudit previous year results due to the disbanding of the firm that performed last year’s audit

A

Communications between Predecessor and Successor Auditors

57
Q

What guidance topic would you refer to for the following situation?

Requirements relating to identifying violations of occupational safety and health regulations

A

Considerations of Laws and Regulations

58
Q

What guidance topic would you refer to for the following situation?

The need to brainstorm among audit team members about how accounts could be intentionally misstated

A

Fraud

59
Q

What guidance topic would you refer to for the following situation?

The importance of considering the possibility of overstated revenue through premature revenue recognition

A

Fraud

60
Q

What Professional Standards addresses the following situation:

Nonpublic audit client is hoping to take the company public. He requests that in addition to your standard financial statement report you issue a report on internal control that he can make available to any individual or organization he desires. He would like to have two reports (like public companies do) - one for FSs and one for IC

A

AT

61
Q

What Professional Standards addresses the following situation:

A nonpublic company has limitations of internal control. Professional Standards acknowledge that internal control has certain limitations that affect financial statement audits. Where are these limitations discussed?

A

AU-C

62
Q

What Professional Standards addresses the following situation:

Your client, a nonpublic audit client, suggests to you that his previous auditor did not confirm A/R and you should not need to do so either

A

AU-C

63
Q

T/F

Both the AIPCA and the SEC allow auditors to prepare financial statements

A

FALSE

The AICPA allows this
The SEC does not

64
Q

T/F

Both the AIPCA and the SEC allow auditors to prepare source documents

A

FALSE

Neither the AICPA nor the SEC allow this

65
Q

T/F

Both the AIPCA and the SEC allow auditors to record transactions

A

FALSE

Neither the AICPA nor the SEC allow this

AUD Flashcards (16 decks)

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