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AUD > A1&A2 > Flashcards

A1&A2 Flashcards

1
Q

Auditing standards
v.s.
Auditing procedures

A

✅ Auditing standards
The quality of the performance of the acts

✅ Auditing procedures
The acts to be performed

@3208

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2
Q

In order to obtain reasonable assurance, the auditor must:
4 steps

A
  1. Plan the work and properly supervise any assistants
  2. Identify and assess risks of material misstatement
    ⬆️ (fraud or error)
  3. Determine and apply appropriate materiality levels
  4. Obtain sufficient appropriate audit evidence

@3367

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3
Q

Management is responsible for:
有3

A
  1. Preparation and fair presentation of F/S in accordance with the applicable financial reporting framework
  2. The design, implementation and maintenance of internal control relevant to 1. that are free of material misstatement due to error or fraud.
  3. Providing the auditor with access to information and persons within the entity needed to complete the audit

@3312

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4
Q

Group engagement partner 決定 refer component auditor 時，要在 ________ state “We did not audit the F/S of X company”

A

Opinion section

@15005

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5
Q

Subsequently discovered fact that lead to change in an audit opinion may be presented in

A

Emphasis-of-Matter
or
Other-Matter

@25

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6
Q

A change in accounting principles, effect on comparability of F/S
✅Material
✅Immaterial
要如何表達

A

✅Material
Unmodified & refer to the change in Emphasis-of-Matter

✅Immaterial
不需說明

@8165

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7
Q

企業的財報採用 IFRS + GAAP，
different report frameworks 要在 _______ stated

A

Other-Matter

@16329

Material weakness internal control
不會在 Other-Matter 出現
而是會 report to governance
視情況影響 opinion

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8
Q

“In our opinion, except for….. described in the Basis for Qualification section of our report”
是屬於 _________ paragraph

A

Qualified Opinion

@14985

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9
Q

改變前期的 opinion
Qualified ➡️ Unmodified
要如何 express

A

Unmodified ➕ Emphasis-of-matter

@15001

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10
Q

A change in accounting principle 是 subsequent event 嗎

A

不是！

@3366

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11
Q

若F/S 為 Adverse or Disclaim opinion, auditor 就不能對 ________ 有 opinion

A

不能對 supplementary information 有 opinion

@42

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12
Q

Documentation completion date 🟰

A

Release date ➕
45 天 (Issuer)
60 天 (Nonissuer)

@5395

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13
Q

Auditor’s documentation of risk assessment should consider the 有 3 of the an entity being auditing

A

Nature
Size
Complexity

@16297

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14
Q

Quality control elements
HELPME

主要目的是防止

A

associated with 與 lack of integrity 的企業

@5751

Human Resources
Engagement
Leadership
Performance
Monitoring
Ethical (Independent)

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15
Q

Substantial test 通常在 _______ 執行

A

After year-end
@2671

After initial planning activity

例如
Evaluate the reasonableness of the client’s accounting estimates
Inquire of the client’s attorney as to whether any unrecorded claims are probable if assertion
@2675
Anticipated sample size @3031

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16
Q

在接受 an engagement to audit a new client, a CPA 必須要 obtain

A

客戶同意
詢問 predecessor auditor

@2677

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17
Q

Audit process 前中後的 Obtain

A

前
客戶同意 inquiring predecessor auditor

中
Engagement letter (由 auditor 出具) @3887

Planning stage :
Make a preliminary assessment of materiality @7148
Preliminary understanding of client’s control environment
Understanding of client’s industry and business
Audit committee communication @7148

後
Management representation letter

@2677

還不確定 planning stage 應該在這出現嗎 9/25

18
Q

Material level 與 Substantive testing 的關係

A

反向關係

Increase in Material level
會 Decrease audit risk
進而 Decrease substantive testing

@5484

先決定 Material level
再決定 Substantive testing

@3031

19
Q

Overall material 🟰
&
Performance materiality 🟰

A

Overall material
🟰Applicable benchmark
✖️Applicable % of “Revenue or other”

Performance materiality
🟰Overall materiality
✖️ Likelihood Application %

@4703

20
Q

存在於Engagement letter 有

A

Any specialists will be involved in the engagement @5718
Management’s responsibility to provide certain written representations to the auditor @4736
Signed & dated by client @4447
Objectives of the engagement @4447
Overall audit strategy (but not specific audit procedure) @8152
Limits the auditor’s responsibility to detect errors and fraud @5475
(Only reasonable assurance)
Summarize the timing and details of auditor’s planned field work @2378

21
Q

Supplementary information 是用於出具________ 意見的財報

p.s. 其資訊是直接衍生自使用於 F/S 而來

A

Unqualified
Unmodified
Qualified

@17600

22
Q

Adverse opinion 的 phrase

Disclaimer of opinion 的 phrase

Qualified opinion 的 phrase

A

✅ Adverse opinion
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion section of our report, the accompanying consolidated F/S do 🔑not present fairly the financial position”…

✅ Disclaimer of opinion
Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have 🔑not been obtain sufficient appropriate audit evidence” to provide a basis for an audit opinion on these F/S…

✅ Qualified opinion
In our opinion, 🔑except for the omission of information describe in the Basis of Qualified Opinion section in our report”…

@14976

23
Q

Audit plan 會有

A

Description of the nature, timing, and extent of
planned risk assessment procedures and
planned further audit procedures

Other audit procedures to be performed to comply with GAAS

@8687

24
Q

Emphasis-of-matter 要特別強調

A

Specific matter
and
The matter did not lead to a modified opinion
@162

Special report
Cash basis / Tax basis
@10258

25
Q

Six main F/S assertion:

A

COVERUP

  1. Cutoff (PCAOB 沒有這條) @7686
    正確的財報期間
  2. Completeness
  3. Valuation, Allocation and Accuracy
  4. Existence and Occurrence
    真實發生 and 存在
  5. Rights and Obligations
    資產的權利 and 負債的義務
    不能用來測試 Transaction & event
  6. Understandability of Presentation and Classification
    (PCAOB 是 Presentation & Disclosure)

@15054

26
Q

Auditor’s responsibility is to 評估與檢測 F/S 可能的 material misstatements or fraud，意味著 auditor 應該要著重於評估

A

Mistakes
Falsifications 虛假報告
Omissions

ChatGPT
@2982

27
Q

Audit documentation 的主要功能有4

A
  1. The principle support for the auditor’s report
  2. Assistance in the planning, conduct and supervision of the audit
  3. Accountability
  4. Useful information

@2359

28
Q

F/S using cash basis 要在 ______ paragraph
F/S using regulatory basis or contractual basis 要在 _______ paragraph

A

✅ Cash basis
Emphasis -of-matter paragraph

✅ Regulatory basis (single opinion) or contractual basis
Other-matter paragraph (restricted the use of auditor’s report)
以及
Description of the purpose in the Management’s responsibilities paragraph

@166

29
Q

Detective risk 是指 auditor 未能發現財報重大錯誤的可能性，所以通常會透過執行 ___________，降低 Detective risk

A

Substantial test

@ChatGPT x @2939

30
Q

COSO 由五個組織成立

A

AICPA
IIA Institute of Internal Auditor
IMA Institute of Management Accountants
AAA American Accounting Association
FEI Financial Executives Institute

@ 466

31
Q

During an audit, the auditor should maintain an attitude of professional skepticism, which includes a ______ mind and a _______ assessment of audit evidence

A

Questioning mind
&
Critical assessment

@6872

32
Q

Auditor’s working trail balance 通常含有 a column for

A

Adjustments
&
Reclassifications

@2367

33
Q

Audit objectives and assertions are contained in the

A

Audit plan

@2367

34
Q

Attributes of risk 有四

A

Type of risk
Significant of the risk
Likelihood of the risk
Pervasiveness of the risk

@7597

35
Q

Substantial doubt about entity’s ability to continue as a going concern, 但無其他缺失, 應
Unmodified ➕ _______
Remain
Alleviate

A

✅ Remain
(Separate) Explanatory section/paragraph

✅Alleviate
Emphasis-of-matter paragraph

@15771

36
Q

Client’s books and records are the support for _________.
Audit documentation is the support for the work auditor has done to support the _______ provided on the auditor’s report.

A

F/S

Opinion

@2643

37
Q

Substantial test 要在 interim date 測試前，auditor 必須先 assess the difficulty in controlling the ________ risk and determine whether ________ alternative procedure exist to extent the interim conclusion to year-end.

A

Incremental audit risk
Sufficient

@5505

38
Q

Accept level of detection risk affects the nature, timing and extent of _____________
As detection risk increase, the assurance (effectiveness) must be provided from ___________ can decrease

A

Substantive procedures
Substantive tests
@2911

39
Q

IR & CR 影響

A

DR

@2911

40
Q

Audit objectives are based on

A

F/S assertions

@10832

AUD (5 decks)

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