aud Flashcards
What should be included in the CAM section of an audit report for an issuer?
I - Identification of CAM
P - Principal consideration used to identify CAM
A - how the CAM was addressed
D - Disclosure reference/FSs accounts
Hierarchy of Sufficient Appropriate Evidence
A - AuditorKnowledge/Observation
E - External Evidence
I - Internal Evidence
O - Oral Evidence
What Functions of IC Must be Segregated
A - Authorization
R - Recordkeeping
C - Custody
Standard Audit Procedures
C - Confirmation(s)
F - Foot/Cross foot, Recalculation
I - Inquiry
V - Vouch
E - Examine/Inspecting
C - Cutoff
A - Analytical Procedures
R - Reperformance
R - Reconciliation
O - Observation
T - Tracing
W - Walkthrough
A - Audit related accounts together
R - Obtain Rep. Letter
S - Subsequent Event Review
Indicators of Substantial Doubt
F - Financial Difficulties
I - Internal Matters
N - Negative Trends
E - External Matters
Procedures Over Sub. Events
P - Post BS Transactions
R - Obtain Rep. Letter
I - Inquiry
M - BOD Minutes
E - Examine interim FSs and compared w/ issued FSs
Components of IC
C - Control Environment
R - Risk Assessment
I - Information and Communication
M - Monitoring
E - Existing Controls
Components of IC
C - Control Environment
R - Risk Assessment
I - Information and Communication
M - Monitoring
E - Existing Controls
Components of Existing Controls
P - Prenumbering of Documents
A - Authorization of Transaction
I - Independent Checks
D - Documentation
T - Timely/appropriate FS reviews
I - Information Processing Controls
P - Physical Controls for Safeguarding Assets
S - Segregation of Duties
Documentation of Understanding of IC
F - Flowchart
I - Internal Questionnaire
N - Narrative
D - Documentation From Client
Elements of QC
H - Human Resources
E - Engagement Acceptance/Continuance
L - Leadership (Tone-at-the-top)
P - Performance of the Engagement
M - Monitoring
E - Ethical Requirements
Types of Services Covered Under SSARS
C - Compilations (No Assurance)
P - Preparation (No Assurance)
R - Review (Limited Assurance)
Types of Services Covered Under SSARS
C - Compilations (
P - Preparation
R - Review
Standard Review Procedures
U - Establish Understanding With Client
L - Learn Client
I - Inquiry
A - Analytical Procedures
R - Review - Other procedures Performed
C - Client Rep. Letter Must be Obtained
P - Professional Judgement Should be Exercised
A - Accountant should issue report
What sections are modified when a Qualified Opinion is issued (Non-issuers) for both GAAS and GAAP issues?
1) Opinion
2) Basis for Opinion
What sections are modified when a Adverse Opinion is issued (Non-issuers)
1) Opinion
2) Basis for Opinion
3) KAM is omitted (REMEMBER KAM IS REPORTED WHEN WE ARE ENGAGED TO DO SO)
What sections are modified when a Qualified Opinion is issued (issuers) for both GAAS and GAAP issues?
1) Opinion
2) ADD Additional Paragraphs
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What sections are modified when a Adverse Opinion is issued (Issuers)
Same as modifications to a report where Qualified Opinion was issued.
What sections are modified when a Disclaimer of Opinion is issued (Non-issuers)
1) Opinion
2) Basis for Opinion
3) KAM is omitted (REMEMBER KAM IS REPORTED WHEN WE ARE ENGAGED TO DO SO)
4) Auditor Responsibities
What sections are modified when a Disclaimer of Opinion is issued (Issuers)
1) Opinion
2) ADD Additional Paragraphs
3) Basis for Opinion
4) CAM section is omitted
If the updated opinion differs from the previous opinion, the auditor should
1) Disclose the reasons in an explanatory/other matters paragraph (non-issuers) or explanatory paragraph (issuer). These paragraphs should include:
D - Date of the auditor's previous report O - Opinion type previously issued R - Reason for the prior opinion C - Changes that have occurred S - Statement that the opinion is different
What section does the auditor modify if he/she decides to not make reference to a component auditor?
Opinion section - we have to include a paragraph stating that we are not responsible for the component auditor’s section
P.S. Just because the component auditor issues a modified opinion, does not mean we should as well. We must assess how material their component is to the FSs as a whole.
Conditions for AUPs
I - Independent of the Practitioner
A - Agreement of the parties (must obtain engagement letter)
M - Measurability and consistency
S - Sufficiency of the Procedures
U - Use of report can be general or restricted
R - Responsibility of the Subject matter relies on client or 3rd party
What are the Rules set by the AICPA Code of Professional Conduct?
A - Acts Discreditable
A - Accounting Principles
A - Advertising and Other Forms of Soliciting
C - Client Confidentiality
C - Compliance w. Stdrds
C - Contingent Fees
C - Commissions & Referral Fees
I - Independence
I - Integrity and Objectivity
G - General Stdrds
F - Form of Organization & Name
What are the Types of Threats Identified as Part of any Conceptual Framework Used to Replace the Rules set by the AICPA Code of Professional Conduct?
U - Undue Influence
M - MGMT Participation
A - Advocacy Threat
A - Adverse Interest
S - Self Review
S - Self Interest
F - Familiarity Threat
What are the Types of Non-Attest Services That Impair Independence
F - Financial Information Systems Design & Implementation
A - Appraisal and Valuation Services
A - Actual or Threatened Litigation
T - Tax Services for Confidential or Aggressive Tax Positions
T - Tax Services for Corporate Officers or Family Members
M - MGMT or HR Services
I - Internal Audit
S - Services as Broker, Dealer, or Advisor
L - Legal Services
E - Expert Services
B - Bookkeeping
O - Overdue of Payment of Fees
C - Contingent Fees
A - Actuarial Services
S - Significant Gifts From Client
