Adaptive Drill Wrong Answers Flashcards
Under agreed upon procedures, the determination of the procedure’s sufficiency is…
Tasked to specified parties
Agreed upon procedures must…
Agreed upon by the practitioner and specified parties engaging
The practitioner
Under agreed upon procedures the practitioner should not report on…
Criteria to be used to determine findings
A scope limitation would be mentioned in…
Scope paragraph, explanatory paragraph proceeding opinion,
And opinion paragraph
The fourth standard of reporting requires the auditor’s report to contain either an expression of opinion regarding the financial statements taken as a whole or an assertion to the effect that an opinion cannot be expressed. The objective of the fourth standard is to prevent…
Misinterpretations regarding the degree of responsibility the
Auditor is assuming
If an auditor is retained to audit the financial statements of a company that is not his client the report is customarily addressed to…
The client and not to the directors or stockholder’s of the company
Whose FS are being audited
The user auditor should make inquiries into what of the service auditor?
Inquiries into the professional reputation of the service auditor
Government auditing standards include a general standard stating that each audit organization conducting government audits should…2
1 Have an appropriate internal quality control system in place
And
2 participate in external quality control review program
A CPA seeking to enter into a contract to perform an audit subject to government auditing standards should…
Provide the CPA’s most recent external quality review report
To the party contracting for the audit
Test data are auditor contrived transactions designed to…
Test controls that are imbedded in information technology
Processing programs
When auditing an entity’s computerized payroll transactions, an auditor would use test data to test controls concerning…3
1 determine calculation of hours worked
2 withholding of payroll taxes
3 identifying employee numbers
When auditing an entity’s computerized payroll transactions, an auditor would be least likely to use test data to test controls concerning entering dummy checks to determine control of unclaimed checks, because…
They can observe and inquire as to the whereabouts and
Disposition of actual checks
Other matter paragraphs involve communication of matter that is…
Not presented or disclosed in FS or notes
Management’s attitude towards monitoring risks, management’s attitudes and actions towards financial reporting and management’s
Emphasis on meeting financial and operating goals, these characteristics have…
Significant influence in control environment, particularly when
Management is dominated by one or a few individuals
For a Nonpublic company, When unaudited financial statements are presented in comparative form with audited financial statements, the financial statements that have not been audited should be clearly marked to indicate their status and…2
1 Either the report of the prior period should be reissued
Or
2 report on current period should include separate paragraph
On description of responsibility assumed for FS for previous period
