Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

AUD > AUD 1 > Flashcards

AUD 1 Flashcards

1
Q

What word defines audit evidence?

A

Appropriate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Audits should be prepared with..

A

Professional skepticism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Reasonable assurance is defined as

A

A high but not absolute level of assurance to allow an auditor to detect a material misstatement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

To obtain reasonable assurance…

A

Auditors should plan the work properly and supervise any assistants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Audit requirements are in accordance with…

A

Both GAAS and government auditing standards GAGAS

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

GAAS provides guidance and measures the quality of the auditor’s performance. GAAP does what?

A

GAAP provides applicable financial reporting framework

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Qualified or adverse opinion

A

If FS fail to disclose info that is generally required by GAAP

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Adverse opinion

A

When mateial and persuasive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

When an auditor lacks independence…

A

a disclaimer of opinion should be issued

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Disclaimer of opinion is for

A

significant scope limitation
FS are not audited
auditor is not independent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Emphasis of matter paragraph is required to

A

describe a justified change in accounting principle that is material to the financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

CPA doesn’t have to be independent to perform what?

A

Compilation-since these do not provide assurance

They need to state they are not independent.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Decrease in tolerable misstatement means

A

Increase in sample size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

When is a disclaimer of opinion offered?

A

Significant scope limitation
Auditor is not independent
Financial statements are not audited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the most authoritative guidance?

A

General guidance provided by a Statement on Auditing Standards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Sound accounting policies is an implicit part of…

A

management’s responsibilities, not the auditor’s

17
Q

GAAS measures what?

A

The quality of the auditor’s performance and guides the auditor in a properly planned and executed audit

18
Q

Management not letting auditors use legal counsel results in what type of opinion?

A

Result in disclaimer of opinion or removal from the audit

19
Q

If material and persuasive, then issue what type of opinion?

A

Adverse

20
Q

With required supplementary information…

A

apply limited procedures and include “required supplementary information” as a section to the audit report

21
Q

If an auditor can’t get the F/S of a consolidated investee -

A

they cannot issue an unmodified opinion

22
Q

Omissions by SEC will be included where and what type of report is issued?

A

Other matter paragraph - unmodified report

23
Q

Lack of sufficient appropriate audit evidence and restrictions of the scope of the audit both can result in what type of opinions?

A

Qualified opinion

24
Q

Disclaimer of opinion means no opinion - one reason could be what?

A

Not enough audit evidence

25
Q

Audit of a nonissuer should conduct the audit according to what standards

A

ASB only is required but they may choose to follow PCAOB as well

26
Q

Inadequate disclosure of material information is a departure from GAAP and results in what type of opinion?

A

Adverse or qualified - depending on materiality

Adverse is material and persuasive

27
Q

Auditor decisions need to be made by the auditor - they cannot go to the audit committee of the client for advice on procedures. Instead, an auditor should..

A

exhibit professional judgement for the procedures

28
Q

An auditor should change the PY previous issued opinion when issuing comparative financial statements when…

A

the PY financial statements were restated

29
Q

If an auditor’s contract is up, and they discover a fact that could have changed the FS but they have already issued the report, the auditor is required to do what?

A

Required to determine whether the information is reliable

and whether the facts existed at the date of the report

30
Q

Emphasis of matter paragraph is required …

A

to describe a justified change in accounting principle that is material

31
Q

Adverse opinion is when

A

FS are represented not in accordance with GAAP

32
Q

When lacking independence, what type of opinion can be issued?

A

Disclaimer of opinion

33
Q

The opinion paragraph in an auditor’s report should include

A

identifying the applicable financial reporting framework and its origin

34
Q

Independence is not required for what type of report?

A

Compilation.

35
Q

When is the rep letter dated?

A

At the end of an audit report by management.

The audit report is signed before the rep letter is signed.

36
Q

Quick ratio

A

Current assets excluding inventory and prepaid expenses / current liabilities

AUD (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions