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Old Audit > A6 > Flashcards

A6 Flashcards

1
Q

When an independent accountants report is based on a review of interim financial statements, what statement should the auditor include if the report is part of a registration statement?

A

THAT THE REVIEW REPORT IS NOT PART OF THE REGISTERED STATEMENT

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2
Q

SSARS requires the compiled financial statements to be accompanied by what?

A

COMPILATION REPORT

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3
Q

Would providing extensive advisory services to an audit client impair independence?

A

NO

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4
Q

How long does an accounting firm need to keep audit work papers and documentation for?

A

7 YEARS

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5
Q

Should an auditor who is engaged to compile financial statements withdraw from the engagement and have nothing further to do with them if there are many misstatements and management refuses to correct them?

A

YES

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6
Q

Should an auditor who is engaged to compile financial statements withdraw from the engagement and have nothing further to do with them if there are many misstatements and management refuses to correct them?

A

YES

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7
Q

When modification to the standard report is not sufficient enough to indicate the deficiencies in the statements, what should the accountant do?

A

WITHDRAW FROM THE ENGAGEMENT AND HAVE NOTHING ELSE TO DO WITH THEM

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8
Q

What type of engagements do you perform analytical procedures for?

A

AUDIT & REVIEW

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9
Q

What should an auditor do if management prevents a CPA from putting a statement on every page of a compilation report that no assurance is provided?

A

ISSUE A DISCLAIMER STATING NO ASSURANCE IS PROVIDED

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10
Q

Is inquiry performed during a review engagement?

A

YES

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11
Q

When proposing adjusting or standard monthly JEs, does an accountant need to follow SSARS?

A

NO

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12
Q

Is there a timeline the audit committee has to resolve issues?

A

NO

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13
Q

What’s a typical procedure performed in a review with SSARS?

A

INQUIRIES

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14
Q

What standards are for a compilation of a nonissuer?

A

SSARS

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15
Q

Are analytical procedures performed during the compilation?

A

NO

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16
Q

In a review of interim financial statements of a publicly held company, are auditors required to compare interim results with prior periods?

A

YES

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17
Q

In a non-client regulated mutual fund the member _____ have control over what the mutual fund is investing in.

A

DOES NOT

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18
Q

Are inquiries part of the audit for a review engagement?

A

YES

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19
Q

What professional standard is an auditor putting forth their honest effort in the performance of professional service?

A

PROFESSIONAL BEHAVIOR

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20
Q

When an accountant is not independent and is compiling financial statements for an entity, where do they disclose that they are not independent?

A

FINAL PARAGRAPH OF THE ACCOUNTANTS REPORT

21
Q

What tax services are permitted by the PCAOB?

A

TAX PLANNING, COMPLIANCE, & ADVICE

22
Q

Should internal audit staff have a direct or indirect reporting relationship to the corporate Director of internal audit?

A

DIRECT

23
Q

What type of threat is there when there is an inappropriate influence on the auditors judgment or behavior?

A

BIAS THREAT

24
Q

What is the objective of a review of in term financial information?

A

TO MAKE SURE THE STATEMENTS ARE IN LINE WITH GAAP

25
Q

Should an auditor make inquiries during a review engagement in accordance with SSARS?

A

YES

26
Q

When performing a ______ an auditor should consider the results of audit procedures performed for the current year financial statements.

A

REVIEW PERFORMING

27
Q

In a preparation are auditors required to make inquiries about the completeness of the information provided by management?

A

NO

28
Q

Under DOL independent rules if an audit actuary is working for an audit client is independence impaired?

A

NO

29
Q

True/false: financial penalties, suspension or revocation of PCAOB registration, and required CPE credits are sanctions that may be imposed by the PCAOB.

A

TRUE

30
Q

Critically reviewing those assisting with the audit is an example of what?

A

EXERCISING PROFESSIONAL DUE CARE

31
Q

True/false: the CPP profession promotes ethical standards and establishes measures for ensuring their observance because they believe the distinguishing mark of the profession is its acceptance of responsibility to the public.

A

TRUE

32
Q

Does an auditor assess internal controls in a review engagement of a non-public entity?

A

NO

33
Q

“We understand that a review consist principal and performing analog procedures and making inquiries about the interim financial information” is from what letter?

A

ENGAGEMENT LETTER

34
Q

Safeguards to threats to independence identified by GAGAS are not effective to mitigate what type of threat?

A

MANAGEMENT PARTICIPATION THREAT

35
Q

SSARS is over what type of engagements ?

A

REVIEW (NONISSUER ONLY), COMPILATION, & PREPARATION

36
Q

SSAE is over what type of procedures?

A

EXAMINATION, REVIEW (FOR ISSUERS), & AGREED-UPON PROCESURES

37
Q

Is SSAE over issuers or non-issuers?

A

ISSUERS

38
Q

Is SSARS over issuers or non-issuers?

A

NONISSUERS

39
Q

Who are over audits for issuers?

A

PCAOB

40
Q

Who are over audits for non-issuers?

A

SAS

41
Q

What must the financial expert serving on an audit committee have experience with?

A

INTERNAL CONTROLS

42
Q

An effect way to test whether unrecorded disposals ______ is to select certain items of equipment from the accounting records and locate them in the plant.

A

OCCURRED

43
Q

Are Board a members considered to be independent for the purpose of being on the audit committee?

A

YES THEY ARE INDEPENDENT

44
Q

When are modifications made to the standard review report?

A

ONLY WHEN THERE IS A DEPARTURE FROM GAAP

45
Q

Before reissuing a compilation report for prior years of a nonissuer, the account should _______ the prior year financial states with the current year.

A

COMPARE

46
Q

The DOL requires auditors to be independent when auditing and submitting annual financials to the ____

A

DOL

47
Q

The DOL requires auditor independence when providing a financial opinion sunbird to the _____

A

DOL

48
Q

Is independence impaired if the auditor owns municipal bonds that are not material to their wealth!

A

YES

Old Audit (6 decks)

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