a6

Question 1

when FS of nonissuer are COMPILED without audit or review, what does auditor need to indicate

Answer 1

the FS have NOT BEEN AUDITED OR REVIEWED

Question 2

3 words associated with a REVIEW enagement

Answer 2

INQUIRY & ANALYTICAL PROCEDURES

Question 3

assurance provided in compilation

Answer 3

none

trick to remember: think COMPilation, auditor just gets COMPensated for not doing much, or providing any assurance

Question 4

3 main documents required in compilation engagement

Answer 4

1. SIGNED engagement letter
2. FS that the auditor has read to check for obvious mistakes
3. compilation report – ONE PARAGRAPH – states that the auditor did NOT review or audit and that they express no opinion

Question 5

objective of a review of interim financial information

Answer 5

provide accountant with a basis of reporting on whether material modifications should be made to conform w GAAP

Question 6

review of a publicly held company’s interim FS are under what professional standards?

Answer 6

PCAOB

Question 7

what is the exception to the prohibited non-audit services an audit firm can provide to an issuer under sarbanes oxley 2002

Answer 7

they CAN provide tax services (tax planning, compliance, and advice) that have been preapproved by the audit committee

Question 8

what established PCAOB?

Answer 8

sarbanes oxley 2002

Question 9

how many audits does a CPA firm have to perform before annual inspection by PCAOB?

Answer 9

more than 100 audits

Question 10

if audit firm audits <100 audit reports, how often PCAOB inspection

Answer 10

every 3 years

Question 11

how many CPAs in PCAOB? non cpas?

Answer 11

2 CPAS, 3 non cpas