A5 Flashcards
What is the difference between SOC 1 and SOC 2?
SOC 1 = report on internal controls over financial reporting at a service organization
SOC 2 = report on internal controls related to one or more of Trust services Criteria
What is the difference between SOC1 Type 1 an Type 2?
Type 1 = report when testing the operating effectiveness of trust departments internal controls not performed
Type 2 = report from auditor of the trust department will give assurance about design, implementation, and operating effectiveness of the trust departments IC
What is a subrecipient?
Nonfederal entity that expands federal financial assistance administered by another entity
What assurance does a Soc1 type 2 report provide?
give assurance about the design, implementation, and operating effectiveness of the departments internal controls.
What report is issued when a material weakness exist?
Adverse opinion
What standards does a CPA apply in review of pro forma financial information?
Should refer to Statements on Standards for Attestation Engagements
What is the auditors objectives in a compliance audit of govt entity?
Form an opinion on whether that Govt complied with applicable compliance requirements
What are the 3 engagements that must abide but the Government Audit Standards?
- Financial audits
- Attest engagements
- Performance audits
Under 2 CFR 200 (single audit) how will auditors determine major programs?
Using a risk based approach
What assurance is provided through a compliance audit?
negative assurance
If there is fraudulent reporting discovered in a GAS audit - who should be contacted?
The agency that provided the grant
What does a GAS report require?
The auditor must describe the scope of the auditor’s work in obtaining an understanding of internal control and his or her assessment of control risk.
