Assurance ACA Flashcards
What are the four things companies are required to post regarding sustainability?
Governance,
Strategy,
Risk management,
Metrics.
Where is the expectation gap closed?
The letter of engagement.
How is an audit obtained?
Through selection and engagement.
What does TRIMROT stand for and what is it for?
Technical competence
Resources
Independence
Money laundering
References
Outgoing auditors
Terms of engagement.
It helps auditors decide on whether or not to accept an engagement.
What does SARD stand for and what is it used for?
What does RAP stand for, when is it used and what % are associated with each letter?
Revenue, assets and profit.
What are the assertions for account balances?
Existence.
Right and obligations.
Completeness.
Accuracy, valuation and allocation.
Classification.
Presentation.
What are the assertions for transactions?
Occurrence.
Completeness.
Accuracy.
Cut-off.
Classification.
Presentation.
What are the key sources of information to gather audit evidence for liabilities?
payables ledger account and supplier statements.
Confirmation from suppliers.
Payments made post year ended to suppliers.
What do auditors do when evaluating representations?
Seem corroborative audit evidence.
Evaluate reasonableness and consistency with information.
Assess individuals making up the presentation.
What does the auditor need to consider when providing an opinion?
Whether sufficient appropriate evidence has been obtained.
Whether uncorrected misstatements are material.
What are the main ethical threats?
Self-interest.
Self-review.
Advocacy.
Familiarity.
Intimidation.
Management.
How often does an engagement partner need to be rotated and how long should they not return for?
5 years.
How often does an engagement quality reviewer need to be rotated and how long should they not return for?
7 years for rotation and 5 years until return.
When should a key partner be rotated and how long should they not return for following this?
7 years for rotation and 2 years until they can return.