A5 Flashcards
If unable to obtain a management representation letter, what should an auditor do?
They should withdraw
used to select controls in integrated audit
top-down approach
what is the primary purpose of engagement of internal control?
assessing control tisk
In integrated audit, auditor should determine weather components are
- Present and functioning in design, implementation, and operation
- operating together in integrated manner
what opinion do material weaknesses result in?
adverse opinion
what is the auditor required to communicate with governance?
planned scope, auditor’s responsibility, and significant findings
what opinion does a scope limitation garner?
withdrawal or disclaimer
what service will be used in audit engagements
SAS, PCAOB
what service is used in attestation engagements?
SSAE
what service is used for preparation, compilation, and Review
SSARS
Services of attestation
- agreed-upon procedures
- Financial forecasts+ projections
- Pro forma financial statements
- Compliance attestations
- management discussion and analysis
- Reporting on controls at service organizations
concepts of Attestation CAPE CORP
Compliance
acceptance+ continuance
Precondition
Engagement documentation
Change in terms of engagement
Other practitioners work
Responsibility of quality control
Professional skepticism+ judgement
what does practitioner’s report need to include?
procedures performed, related findings, and materiality thresholds
what should be listed in practitioner’s report?
specific procedures
who should make inquiries about accounting principles used in preparation of prospective FS?
accountant
Evaluating financial forecast includes
Evaluating presentation, support, presentation of FS with AICPA, and issuing examination report
when should an auditor disclaim an opinion?
when they can’t perform certain procedures
reports internal controls over financial reporting
SOC 1 Report
Reports on internal control on trust services
SOC 2 Report
Can help auditor obtain understanding of a control
Type 1 report
help obtain information about internal control
Type 2 Report
what is objective of auditor’s examination with entity compliance?
to issue opinion or assertion
what should an auditor do when examining entity compliance?
determine existence of supplementary audit requirements, perform risk assessments, and prepare report with required documentation
what is auditor responsibility when reporting on GAGAS
- compliance with laws, rules, and regulations
- internal control over financial reporting
3 types of engagements defined by governmental standards
Financial audit, attest engagement, performance audits
what does GAAS primarily apply to?
audits using federal assistance and government organizations
who should fraud be directly reported to in GAGAS?
audit committee
How long does auditor and audit retain documentation for
3 years
single audit
includes separate evaluation of materiality for each major program
program audit
used when expenditures are under one program
what opinion is given in noncompliances
qualified/ adverse
Five reports for GAAS+ GAGAS
1, GAAS
2. SEFA
3. GAGAS
4. Single audit Report
5. schedule of findings and questioned costs
