A6

Question 1

PCAOB must conduct an inspection once every

Answer 1

Partner must rotate every 5 years
Three years for companies that issue 100 or fewer audit reports
Yearly of more than 100

Question 2

The PCAOB consists of

Answer 2

two CPAs and three non-CPAs.

Established by the Sarbanes-Oxley Act of 2002

Question 3

The Sarbanes-Oxley Act required companies to have an

Answer 3

Audit committee

Question 4

what does the audit committee do

Answer 4

They appoint an auditor, discuss compensation, and resolve disagreements between the auditors and management

Question 5

Preparation engagements(SSARS)

Answer 5

No
Independece
reports
assurance
review procedures

All you do is help out a company clean up their books and print out a balance sheet and a P&L

Question 6

Compilation(SSARS)

Answer 6

Independence required, but if not independent, disclose why
No audit or review procedures performed
NO asurance expressed
Report is required

Question 7

Review(SSARS)

Answer 7

Limited assurance
Perform inquiries and analytical procedures
report requierd

Question 8

Analytical procedures

Answer 8

We come up with an expectation and then we perform procedures to see if they align with our expectation

Question 9

A compilation will never compare

Answer 9

What is provides in comparison with an audit or any otehr type of report

Question 10

When an auditor is not independent from the client in a compilation where whould they disclose this

Answer 10

In the final paragraph of the compilation report

Question 11

When a compiled report from last year omits almost all GAAP disclosures and compilation for this year includes those disclosures then a comparative report

Answer 11

Cannot be made. (The issuance of two separate reports should are not be issued)