A6 Flashcards
Levels of Service (SSARS Engagements) highest to lowest
Review
Compilation
Preparation
which level has no assurance and is not an attest engagement nor need independence. does not require a report
preparation
which level has no assurance, is an attest engagement, requires independence but can disclose if not. and requires a report
Compilation
Which level has limited assurance, assurance and attest engagements, requires report and indpendence
Review
what should each page of FS for a preparation engagmenet incldue
that there is no assurance to the FS
What are the steps required in a Review engagment
U - understanding w client
L - learn entity business
I - Inquires with internal personnel
A - Analytical Procedures
R - Review other procedures
C - Client rep letter
P - Professional judgement
A - accountant communication
when are modifications made to a standard review report?
only when there are departures from GAAP
what is required if an unaudited FS is presented comparatively with a audited FS
status should be indicated and
report on prior period should be reissued or
report on current period should include separate explantory paragraph
what is the objective of an interim review of a public entity?
is to provide the accountant with a basis for reporting whether material modifications should be made to conform with GAAP
What are the principals of AICPA Code of professional conduct
responsibilities
public interest
integrity
objectivity and independence
due care
scope and nature of services
what serivces require objectivitty and integrity
all serivces rendered
what services require indpendence
attest services only (audit, special reports, examiation, agree upon procedures, reviews)
what rule is required by all types of members
acts discrediblte rule
what are the four general standrads rule
professional competence
due professional care
planning and supervision
sufficient relevant data
what are the exceptions for wen a memebr can give confidental information without client consent
1 - court subpoena or summons (dont have to mention to client)
2 - peer quality review (AICPA)
3 - response to inquiries from ethics /trial AIPCA or state disciplinary boards
4 - if client is suing us, can use for legal defense
when are contingent fees allowed
1 - it is fixed by courts or other public authorities or in tax matters
2 - for complications of FS expected to be used by third party only if hte member includes statement that of lack of independence
conceptual framework threats
adverse interest
advocacy
familiarity
management participation
self interest
self review
undue influence
What are the types of loans that do not impair independence
- Automobile loans
- loans of the surrender value under terms of an insurance policy
- borrowing fully collateralized by cash deposits at same financial institution
- CC and cash advances on checking accounts with aggregate unpaid balance of $10k or less
how often does the PCAOB inspect public acct firms less than 100 audits
every three years
how oftend does PCAOB inspect public acct firms more than 100 audits
every year
What does the PCAOB consist of
two CPAs
three non CPAs
What are the GAO ethical principals
serving public interest
integrity
objectivity
proper use of gov’t info, resources, and positions
professional behavior
what are the GAO General standards
independence
professional judgement
competence
quality control and assurance
what are the GAGAS conceptual framework threats
self interest
self review
bias
familiarity
undue
management participation
STRUCTURAL (different from AICPA)
What issued the GAGAS
GAO (gov’t Accountability office)
