A Must Answer Questions Flashcards
Note:
Assurance Services differ from consulting services in that they:
- Focus on enhancing the credibility of FS
- Typically involves situations in which one party wants to monitor another
The quality control policies and procedures applicable to a firm’s accounting and auditing practice should encompass the following elements:
IMPAC O
- Independence, Integrity, and Objectivity
- Personnel Management - HR
- Acceptance and Continuance of Clients and Engagements
- Engagement Performance - engagement should be performed in accordance with standards and regulatory legal requirements
- Monitoring
Again, before accepting an audit engagement, an auditor is required to?
Make inquiries with predecessor
Test of Controls Includes what procedures?
IRIO
Inquiry
Reperformance
Inspection
Observation
An entity’s personnel department provides authorization for hiring, termination, deductions and changes in pay rates
What is the purpose why auditor makes a preliminary estimate of materiality?
The estimate helps the auditor plan the appropriate evidence to accumulate
TorF
Inherent Risk and Control Risk are inversely related to evidence
F. Please explain
The distinction between an adverse opinion and disclaimer of opinion is
Knowledge vs. Lack of Knowledge
The death or disability of an individual CPA and/or the dissolution and liquidation of a firm or partnership of CPAs shall be reported to BOA not later than how many days?
30
As consequence that the auditor failed to adhere to auditing standards resulting to non detection of embezzlement of material amount of funds of a company’s controller. To what extent would the auditor be liable to the client for losses attributable to the theft?
He would be liable for losses attributable to his negligence
The principal reason for the auditor to examine supplier’s statements at balance sheet date is to obtain evidence that
There are no unrecorded liabilities
when misstatements in the FS exists, but is unlikely to affect the decision of a reasonable user, it would be appropriate to issue what type of opinion?
Unqualified
Receiving contingent fee on a tax case before the BIR is NOT prohibited by the Code of Ethics
Oks
In applying Variable Sampling, an auditor attempts to?
PREDICT a monetary population value within a range precision
One of the possible reasons why an auditor will discontinue servicing an audit client is
A change in the client management and the auditor is worried about the reputation of the new management
