A5&A6 Flashcards
Auditor 必須 audit & report on Issuer 的 Internal control,
若 nonissuer 也要求 audit & report, management 必須提供
Written assessment 的 Effectiveness internal control
@2555
CEO & CFO 必須 certify 三項
According to the Sarbanes-Oxley Act 2002
Management internal control report
Annual F/R
Quarterly F/R
Audit committee 的 Financial expertise 是由 Board of directors 確認
@16255
Auditor is required to communicate ALL control deficiency in WRITING with ________ but not _________.
Required: Management
Not required:
Audit committee (issuer)
Charged in governance (nonissuer)
@4378&5613
Economic conditions, prior knowledge of internal control, complexity of operations and previously communicated deficiencies 在 audit 的哪個階段要 consider
Planning (involves developing an overall strategy for the scope and performance of engagement)
@3768
Financial projections are hypothetical (what if)
v.s.
Financial forecasts based on expected conditions
分別適用於
Restricted use
v.s.
General use
@A5M4
Examination v.s. Compilation
of prospective F/S
- 依據 ______ 原則
- 是否出具 opinion
✅Examination
1. SSAE
2. 是
Adverse: 未揭露 assumption 的 reasonable basis
Disclaim: limited scope
Qualified: not followed AICPA presentation guidelines
✅Compliance
1. SSARS
2. 否
@2561&4365
SOC 1
SOC 2
Type 1
Type 2
各為測試 ______ 的 report
SOC 1:
Internal control over F/R @ service organizations
SOC 2:
Internal control related to the Trust Service Criteria
Trust Service Criteria 有五項:
Security, Availability, Confidentiality, Privacy and Processing integrity
Type 1:
Design & Implementation
ONLY
Type 2:
Operating effectiveness
➕
Design & Implementation
@14530
哪種報告可以 provide the user auditor reduces the assessment of control risk
SOC 1 Type 2 report
@14639
Specific findings are presented 是 _______ 的關鍵字
Agreed-upon procedures engagement
AUP
@14532
Examination 是為了issue
An opinion
@14532
GAGAS defined 3 type of engagement
Financial audit
Attest engagement
Performance audit
@5153
Audit, Reviews and Compilations are defined by
GAAS
@5153
GAS 要求 the auditor issue a written report on ___________ in all audit, and must describe the ________ of the auditor’s testing of 🔑compliance with law and regulations and 🔑internal controls over financial reporting, and present the results of these tests
➕
Obtaining an understanding of internal control and _____________ of control risk
Internal control
Scope
Assessment
@3610&5509
Internal control -> compliance
沒有要求 report on fieldwork and procedure
🔑要記好
不是 Internal control over compliance
不是 Internal control 的 effectiveness
@6034
GAGAS 要 auditor report all ___________ & ___________ in internal contro
Significant deficiency
&
Material weakness
@17601
Single audit includes a compliance audit of federal awards is a basis for issuing additional reports related to m______ p______ and on internal control over ________
Major programs
Compliance
@17565
A list of procedures and findings is required to document in __________ engagement
AUP
Agreed-upon procedures engagement
@2378
SSARS 適用於三種情形
另如 prepare F/S for 四種情形，則 SSARS 不適用於
✅ 適用於
Preparation, Compilation, Review F/S
❎ 不適用於
1. Solely submission to TAX authorities
2. In conjunction with LITIGATION services that involve PENDING or POTENTIAL legal or regulatory PROCEEDINGS
3. In conjunction with business VALUATION service
4. (Personal F/S) For inclusion in written personal financial plans
@6291
SSARS 不要求 independent 的是 _________ engagement
另外，__________ 如為 lack of independent 可以接受 engagement 嗎
Preparation 完全不用 independent
Compliance 有揭露 lack of independent 就可以
@12573
SSARS: A Review provides _______ assurance about the F/S based on ______ and _______
Limited (Negative) assurance
Based on
Inquire
&
Analytical review procedures
@6346
Attestatiin engagement CPA 要 obtain a written ________ for, management
Assertion
@14886
An INTERIM Review where the annual F/S are audited, falls under SAS or PCAOB requirements, and would required an understanding of _________
Internal control
@4432
各種分析適用於 _________
1. Ratio analysis
2. Trend analysis
3. Regression analysis
- Relationship between Balance sheet account
- Income statement account
- ???
@6293
SSARS
Preparation
/
Review
每頁都要有
Preparation
No Assurance is Provided
Review
See Independent Accountant’s Review Repot
@6298
Before reissuing a compilation report, predecessor is required 2 件事:
_________ prior year’s F/S with current year
Obtain
Compare F/S
Obtain a letter from the successor
@5834
Prospective F/S may be subject to
Preparation
Compilation
Examine
AUP
@3757
PCAOB is __________ by SEC
Approved
Not established
@3402
AUP 是由 _______ decide the appropriate procedure to be performed and create the criterial to be used in determination if findings
Engagement party
And then partitioner will then agree
@15119
PCAOB 禁止哪些影響 independent 的行為
Bookkeeping
Appraisal
Valuation
Actuarial
Management functions
@15737
Audit committee should pre-approval for 三項
Audit services
Non-audit service rated to internal control over F/R
Tax compliance and tax planning
Review engagement
@4442+6115
排出 non-audit services that do NOT exceed 5% of total revenues from an audit client
Reviewing ANNUAL F/S v.s. INTERIM F/S
的差異
Annual F/S
不用 obtaining an understanding of internal control
Interim F/S (年報有被 audited)
要 obtaining an understanding of internal control
@9939
Audit v.s. Review
相同的
不同的
相同
Obtaining a representative letter from management
Inquiry and analytical procedure
不同
Audit: Positive assurance
Review: Negative assurance
Audit 要
Assessment fraud risk
Corroboration of management’s material estimate
Communication with predecessor accountant
@9930
SOX 規定相互任職至少要間隔一年，被限制的職位有
CEO
CFO
Controller
Chief Accountant officer
@10273
Auditing issuer and nonissuer 都要 obtain a written representation letter from management that acknowledges responsibility for establishing and maintaining effective internal control.
若無法取得 auditor 應:
Disclaimer of opinion
or
Withdraw the engagement
這是一種 Scope imitation
@3767
