A6

Question 1

when does SSARS apply?

Answer 1

when an auditor prepares, compiles or reviews FS

Question 2

SSARS

Answer 2

compilation for non-issuers

Question 3

GAAS

Answer 3

audit engagements for issuers+ non issuers

Question 4

SSAE

Answer 4

attestation engagements for issuers+ non issuers

Question 5

SAS

Answer 5

audit engagement for non issuers

Question 6

ASB

Answer 6

responsible for accounting standards under GAAS

Question 7

FASB

Answer 7

responsible for GAAP

Question 8

GAO

Answer 8

single audit act

Question 9

what is a preparation report considered?

Answer 9

a non-attest engagement

Question 10

what does documentation in a preparation include?

Answer 10

engagement letter, copy of financial statements, and any significant issues or finding

Question 11

When are omitted GAAP disclosures included?

Answer 11

It is in conformity with GAAP
-Not misleading to users
-warns users of missing disclosures

Question 12

difference between compilation and preparation

Answer 12

compilation requires a report and consideration of independence

Question 13

where is lack of independence disclosed in a compilation

Answer 13

The last paragraph

Question 14

who are inquiries made to?

Answer 14

internal personnel

Question 15

what are some items that are required in a review?

Answer 15

obtaining representations, analytical procedures, and inquiries

Question 16

used to examine relationships between balance sheet accounts

Answer 16

ratio analysis

Question 17

used to examine relationships between Income statement accounts

Answer 17

trend analysis

Question 18

examples of analytical procedures done in a review

Answer 18

1. compare FS with prior years
2. Compare FS with budgets or forecasts
3. Compare entity ratios and indicators with other industry entities
4. compare relationships in FS within period + prior period
5. Compare disaggregated revenue data

Question 19

In a review what opinion should auditor render if FS contain material misstatements

Answer 19

qualified/adverse

Question 20

What does additional paragraph contain when prior periods are audited in a review?

Answer 20

1. PP statements were audited
2. date
3. opinion
4. no auditing procedures have been performed since previous report date

Question 21

no assurance, non attest

Answer 21

preparation

Question 22

no assurance/ attest

Answer 22

compilation

Question 23

limited/ negative assurance, attest

Answer 23

review

Question 24

what should an accountant do when unaudited FS are presented in comparative form with audited FS?

Answer 24

1. reissue prior period
2. include other matter paragraphs describing responsibility for PP

Question 25

what should each page on an interim FS be marked?

Answer 25

unaudited

Question 26

what is the objective of a review of interim FS

Answer 26

to see weather material modifications conform with GAAP

Question 27

what is interim FS conducted with

Answer 27

PCAOB

Question 28

what happens if interim report is presented in form of registration

Answer 28

accountant’s review is not part of statement.

Question 29

What are prohibited services to maintain independence?

Answer 29

1. bookeeping
2. appraisal
3. valuation
4. actuarial service/ management functions

Question 30

how many accountants does PCAOB consist of?

Answer 30

2 CPA + 3 Non CPA

Question 31

What is the independence criteria

Answer 31

1. Audit committee can’t accept compensation
2. audit committee can’t be affiliated with issuer

Question 32

what are covered persons

Answer 32

1. Audit engagement team
2. audit chain of command
   3, Partner, principal, shareholder
3. managerial employee who provided 10+ hours of non-audit services

Question 33

when can board of directors receive loans?

Answer 33

when they are in the ordinary course of business