AUD 2 Professional Responsibilities and Ethics 11 Flashcards
1
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities l__s,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
2
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the se_____ies laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
3
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily de____ed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
4
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
l___t frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
5
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous la_____s related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
6
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain t___s
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
7
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to n____y the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
8
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the ____ of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
9
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of non__________ with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
10
Q
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable l__s and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
11
Q
Private Securities Litigation Reform Act of 1995
Although the Pr_____ Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
12
Q
Private Securities Litigation Reform Act of 1995
Although the Private Se_____ies Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
A
Private Securities Litigation Reform Act of 1995
Although the Private Securities Litigation Reform Act of 1995 was primarily designed to
limit frivolous lawsuits related to the securities laws,
it imposes requirements on an auditor to perform certain tests
and to notify the SEC of noncompliance with applicable laws and regulations.
13
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit t___s to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
14
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related p\_\_\_y transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
15
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Go\_\_\_ concern do\_\_\_s.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
16
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o R\_\_\_ed party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
17
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o I\_\_\_\_\_\_ acts (noncompliance with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
18
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (non\_\_\_\_\_\_\_\_\_ with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
19
Q
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party t\_\_\_\_\_\_\_\_\_\_s.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
A
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts (noncompliance with Laws and Regulations)
o Going concern doubts.
20
Q
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (non__________ with laws and regulations) unless clearly inconsequential.
A
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
21
Q
Private Securities Litigation Reform Act of 1995
• Requires quick no___ of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
A
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
22
Q
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inc__________.
A
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
23
Q
Private Securities Litigation Reform Act of 1995
• Requires q____ notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
A
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
24
Q
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of d\_\_\_\_\_\_\_s within 1 business day.
A
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
25
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within _ business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
26
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o A_____ must inform board of directors within 1 business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
27
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor m___ inform board of directors within 1 business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
28
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify ___ by next business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
29
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by n___ business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
30
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must n____ SEC by next business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
31
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business ___.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
32
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o B____ must notify SEC by next business day.
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
33
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board f___s to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
34
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify ___ and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
35
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o A_____ must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
36
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor m___ resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
37
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must r_____ or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
38
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if b___ fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
39
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of n____
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
40
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be s__d privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
41
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for n______ effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
42
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of ___ notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
43
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's s______ies).
Private Securities Litigation Reform Act of 1995
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
44
Private Securities Litigation R____m Act of 1995
* Imposes requirements to include audit tests to detect (RIG):
* Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
45
Private Securities Litigation Reform Act of 1995
• Im____s requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
• R______s quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
46
Private Securities Litigation Reform Act of 1995
* Imposes requirements to include audit t___s to detect (RIG):
* Requires quick n____ of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
Private Securities Litigation Reform Act of 1995
• Imposes requirements to include audit tests to detect (RIG):
o Related party transactions.
o Illegal acts
(noncompliance with Laws and Regulations)
o Going concern doubts.
• Requires quick notice of illegal acts (noncompliance with laws and regulations) unless clearly inconsequential.
o Auditor must inform board of directors within 1 business day.
o Board must notify SEC by next business day.
o Auditor must resign or notify SEC within 1 business day after that, if board fails to notify SEC and provide auditor with proof of notice
(auditor cannot be sued privately for negative effect of SEC notice on the company's securities).
47
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and C______ Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
48
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of f_____.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
49
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has s_________ influence on the auditor’s professional environment concerning the detection of fraud.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
50
Corporate and Criminal Fraud Accountability Act of 2002
The ___ has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
51
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its m________ of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
52
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of p_____ companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Corporate and Criminal Fraud Accountability Act of 2002
The SEC has stepped up its monitoring of public companies under the Corporate and Criminal Fraud Accountability Act of 2002.
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
53
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are r_____ed to maintain all audit working papers for 7 years.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
54
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for _ years.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
55
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all a___ working p____s for 7 years.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
56
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• A______s are required to maintain all audit working papers for 7 years.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
57
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain ___ audit working papers for 7 years.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
58
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 _____s.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• Auditors are required to maintain all audit working papers for 7 years.
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
59
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a fe____ to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
60
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to k______ly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
61
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly d_____y
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
62
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or c______ documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
63
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create d________s (including a___ working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
64
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to im____, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
65
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, ob_____t or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
66
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or in________ any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
67
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or con_______ed federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
68
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal in__________.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
69
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence a__ existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
70
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working p____s)
to impede, obstruct or influence any existing
or contemplated federal investigation.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• It is a felony to knowingly destroy
or create documents (including audit working papers)
to impede, obstruct or influence any existing
or contemplated federal investigation.
71
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
This Act has significant influence on the auditor’s professional environment concerning the detection of fraud.
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
72
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of l_______ns on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
73
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on se______es fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
74
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is ex______ed to 5 years from the fraud,
or 2 years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
75
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to _ years from the fraud,
or 2 years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
76
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or _ years after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
77
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 ____s from the fraud,
or 2 ____s after the fraud was discovered.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
78
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was di_______ed.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• The statute of limitations on securities fraud claims is extended to 5 years from the fraud,
or 2 years after the fraud was discovered.
79
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower pr________
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
80
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended wh_________ protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
81
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the em_______ from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
82
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Em_______s of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
83
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of ___ firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
84
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would p______ the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
85
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against em______s.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
86
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Wh________ employees are also granted a remedy of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
87
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a re___y of special damages and attorney’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
88
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and at_____y’s fees.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Employees of CPA firms (and audit clients) are extended whistleblower protection
that would prohibit the employer from taking certain actions against employees.
Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
89
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• S______ies fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
90
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by ___’s (and audit clients) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
91
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is pu_______ of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
92
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in p_____.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
93
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 ____s in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
94
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to __ years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
95
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit c_____s) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
• Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
96
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* A______s are required to maintain all audit working papers for 7 years.
* It is a felony to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The statute of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* Auditors are required to maintain all audit working papers for 7 years.
* It is a felony to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The statute of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
97
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* Auditors are required to maintain all audit working papers for 7 years.
* It is a f_____y to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The statute of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* Auditors are required to maintain all audit working papers for 7 years.
* It is a felony to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The statute of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
98
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* Auditors are required to maintain all audit working papers for 7 years.
* It is a felony to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The st_____ of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
Corporate and Criminal Fraud Accountability Act of 2002
Provisions include:
* Auditors are required to maintain all audit working papers for 7 years.
* It is a felony to knowingly destroy or create documents (including audit working papers) to impede, obstruct or influence any existing or contemplated federal investigation.
* The statute of limitations on securities fraud claims is extended to 5 years from the fraud, or 2 years after the fraud was discovered.
* Employees of CPA firms (and audit clients) are extended whistleblower protection that would prohibit the employer from taking certain actions against employees. Whistleblower employees are also granted a remedy of special damages and attorney’s fees.
* Securities fraud by CPA’s (and audit clients) is punishable of up to 10 years in prison.
99
PCAOB Standards (AS)
As a result of numerous incidents involving f_________ financial reporting involving such companies as Enron, WorldCom, Global Crossing, and others, Congress passed the Sarbanes-Oxley Act.
One of the numerous provisions of Sarbanes-Oxley established the Public Company Accounting Oversight Board, or PCAOB.
PCAOB Standards (AS)
As a result of numerous incidents involving fraudulent financial reporting involving such companies as Enron, WorldCom, Global Crossing, and others, Congress passed the Sarbanes-Oxley Act.
One of the numerous provisions of Sarbanes-Oxley established the Public Company Accounting Oversight Board, or PCAOB.
100
PCAOB Standards (AS)
As a result of numerous incidents involving fraudulent financial reporting involving such companies as Enron, WorldCom, Global Crossing, and others, Congress passed the Sarbanes-Oxley Act.
One of the numerous provisions of Sarbanes-Oxley es_______ed the Public Company Accounting Oversight Board, or PCAOB.
PCAOB Standards (AS)
As a result of numerous incidents involving fraudulent financial reporting involving such companies as Enron, WorldCom, Global Crossing, and others, Congress passed the Sarbanes-Oxley Act.
One of the numerous provisions of Sarbanes-Oxley established the Public Company Accounting Oversight Board, or PCAOB.
101
PCAOB Standards (AS)
The PCAOB is a non____ corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
102
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Co_______ to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
103
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to o_______ the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
104
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to p_____ investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
105
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect i_______s and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
106
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public i_______ by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
107
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by p______ing informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
108
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting in________, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
109
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, ac______, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
110
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and in________ audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
111
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit r______s.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
112
PCAOB Standards (AS)
The ________ is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
113
Which organization established PCAOB?
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
114
Why Congress established PCAOB?
PCAOB Standards (AS)
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public entities, referred to as issuers, in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.
115
PCAOB Standards (AS)
As a prerequisite to performing an a___ of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
116
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must r_____ with the PCAOB.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
117
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm m___ register with the PCAOB.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
118
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs in_______s, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
119
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts in_________s and disciplinary proceedings of registered firms and sanctions firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
120
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and d_________y proceedings of registered firms and sanctions firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
121
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of r________ed firms and sanctions firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
122
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sa_______s firms, when necessary.
PCAOB Standards (AS)
As a prerequisite to performing an audit of an issuer, a public accounting firm must register with the PCAOB.
The PCAOB also performs inspections, conducts investigations and disciplinary proceedings of registered firms and sanctions firms, when necessary.
123
PCAOB Standards (AS)
The inspections include:
* Inspection and review of selected audit and review engagements.
* An evaluation of the suf_______y of the quality control system of the CPA firm, and how the system is documented and communicated.
PCAOB Standards (AS)
The inspections include:
* Inspection and review of selected audit and review engagements.
* An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
124
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the q_____y control system of the CPA firm, and how the system is documented and communicated.
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
125
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the ___ firm, and how the system is documented and communicated.
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
126
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is d_________ed and communicated.
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
127
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and co________ed.
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
128
PCAOB Standards (AS)
The inspections include:
• Perform other t___s of the audit, supervisory and quality control procedures as considered necessary.
PCAOB Standards (AS)
The inspections include:
• Perform other tests of the audit, supervisory and quality control procedures as considered necessary.
129
PCAOB Standards (AS)
The inspections include:
• Perform other tests of the audit, su_______y and quality control procedures as considered necessary.
PCAOB Standards (AS)
The inspections include:
• Perform other tests of the audit, supervisory and quality control procedures as considered necessary.
130
PCAOB Standards (AS)
The inspections include:
• An ev________ of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
PCAOB Standards (AS)
The inspections include:
• An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
131
PCAOB Standards (AS)
The inspections include:
• Inspection and re____ of selected audit and review engagements.
PCAOB Standards (AS)
The inspections include:
• Inspection and review of selected audit and review engagements.
132
PCAOB Standards (AS)
The inspections include:
• Inspection and review of selected audit and review en_________.
PCAOB Standards (AS)
The inspections include:
• Inspection and review of selected audit and review engagements.
133
PCAOB Standards (AS)
The ins_______s include:
* Inspection and review of selected audit and review engagements.
* An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
* Perform other tests of the audit, supervisory and quality control procedures as considered necessary.
PCAOB Standards (AS)
The inspections include:
* Inspection and review of selected audit and review engagements.
* An evaluation of the sufficiency of the quality control system of the CPA firm, and how the system is documented and communicated.
* Perform other tests of the audit, supervisory and quality control procedures as considered necessary.
134
PCAOB Standards (AS)
At the completion of the in________, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
135
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the ___ and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
136
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the re____ is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
137
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but q____y control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
138
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the is___s within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
139
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within __ months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
140
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 ______s.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
141
PCAOB Standards (AS)
At the completion of the inspection, a w_____ report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
PCAOB Standards (AS)
At the completion of the inspection, a written report is then sent to the SEC and any other appropriate regulatory agency.
The content of the report is made available to the public, but quality control system criticisms are not made public unless the firm doesn’t address the issues within 12 months.
142
PCAOB Standards (AS)
The PCAOB is re________ for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
143
PCAOB Standards (AS)
The PCAOB is responsible for s________s for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
144
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Q______ Control
* Ethics Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
145
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Au______
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
146
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* At________
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
147
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* E___cs Standards (independence) and (integrity and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
148
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (in_____y and objectivity).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
149
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and ob______y).
PCAOB Standards (AS)
The PCAOB is responsible for standards for issuers related to:
* Auditing
* Attestation
* Quality Control
* Ethics Standards (independence) and (integrity and objectivity).
150
PCAOB Standards (AS)
The PCAOB originally issued auditing standards, referred to as AS 1 through AS 18. They have since been codified and are organized as follows
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General Auditing Standards
1000 – General Principles and Responsibilities
1100 – General Concepts
1200 – General Activities
1300 – Auditor Communications
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Audit Procedures
2100 – Audit Planning and Risk Assessment
2200 – Auditing Internal Control Over Financial Reporting
2300 – Audit Procedures in Response to Risks – Nature, Timing, and Extent
2400 – Audit Procedures for Specific Aspects of the Audit
2500 – Audit Procedures for Certain Accounts or Disclosures
2600 – Special Topics
2700 – Auditor’s Responsibilities Regarding Supplemental and Other Information
2800 – Conducting Audit Procedures
2900 – Post-Audit Matters
Auditor Reporting
3100 - Reporting on Audits of Financial Statements
3300 – Other Reporting Topics
Matters Relating to Filings Under Federal Securities Laws
PCAOB Standards (AS)
The PCAOB originally issued auditing standards, referred to as AS 1 through AS 18. They have since been codified and are organized as follows
General Auditing Standards
1000 – General Principles and Responsibilities
AS 1001: Responsibilities and Functions of the Independent Auditor – Requires the auditor to comply with PCAOB standards and distinguishes between the auditor’s responsibilities and those of management.
AS 1005: Independence – Requires the auditor to be independent in mental attitude in all matters relating to the engagement.
AS 1010: Training and Proficiency of the Independent Auditor – Requires the auditor to have adequate technical training and proficiency as an auditor.
AS 1015: Due Professional Care in the Performance of Work – Requires the auditor to apply due professional care in the planning and performance of the engagement and in the preparation of the report.
1100 – General Concepts
AS 1101: Audit Risk – Requires the auditor to consider risk in both an integrated audit and in an audit of financial statements, consisting of audit risk, which is made up of the risk of material misstatement and detection risk (RMM and DR).
AS 1105: Audit Evidence – Describes what constitutes and requires the auditor to perform procedures to obtain sufficient appropriate audit evidence.
AS 1110: Relationship of Auditing Standards to Quality Control Standards – Requires the auditor’s firm to establish quality control policies and procedures to provide reasonable assurance that the firm will comply with applicable PCAOB standards in the performance of its audit engagements.
1200 – General Activities
AS 1201: Supervision of the Audit Engagement – Requires the auditor to supervise the engagement team to assure that work is performed as directed and that conclusions reached are supported.
AS 1205: Part of the Audit Performed by Other Independent Auditors – Indicates when an auditor may serve as a principal auditor and the effect on the auditor’s procedures and the report in circumstances when the auditor does and does not make reference to the other auditor in the report.
AS 1210: Using the Work of a Specialist – Provides guidance to auditors using a specialist when performing an audit under PCAOB standards.
AS 1215: Audit Documentation – Requires the auditor to establish a written record to support conclusions reached and all representations made by the auditor, including those in the audit report.
AS 1220: Engagement Quality Review – Requires that audit engagements, reviews of interim financial, and attestation engagements be subjected to an engagement quality review and concurring approval of issuance.
1300 – Auditor Communications
AS 1301: Communications with Audit Committees – Requires the auditor to communicate to the audit committee relevant information regarding the audit, including the overall strategy and timing, and obtain any information relevant to the audit from the audit committee.
AS 1305: Communications About Control Deficiencies in an Audit of Financial Statements – Requires the auditor to communicate all significant deficiencies and material weaknesses detected during the audit, in writing, to management and the audit committee prior to the issuance of the auditor’s report on the financial statements.
Audit Procedures
2100 – Audit Planning and Risk Assessment
AS 2101: Audit Planning – Requires the auditor to plan the audit so that it can be conducted effectively, including the establishment of an overall audit strategy and an audit plan that incorporates planned risk assessment procedures and planned responses to identified risks of material misstatement.
AS 2105: Consideration of Materiality in Planning and Performing an Audit – Requires the auditor to consider quantitative and qualitative factors in determining what constitutes a potential material misstatement to the financial statements and to plan and design audit procedures that are expected to be effective in detecting them.
AS 2110: Identifying and Assessing Risks of Material Misstatement – Establishes guidelines for the performance of risk assessment procedures, enabling the auditor to obtain an understanding of the entity and its environment, including its internal control, as a basis for designing and applying responses to identified risks of material misstatement.
2200 – Auditing Internal Control Over Financial Reporting
AS 2201: An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements – Establishes requirements for engagements in which the auditor is engaged to examine management’s assessment of internal control that is relevant to financial reporting.
2300 – Audit Procedures in Response to Risks – Nature, Timing, and Extent
AS 2301: The Auditor’s Responses to the Risks of Material Misstatement – Requires the auditor to design and implement appropriate responses to identified risks of material misstatement including responses that have an overall effect on how the audit is conducted and the effects on the nature, timing, and extent of audit procedures to be performed.
AS 2305: Substantive Analytical Procedure – Establishes guidelines for circumstances in which the auditor is using analytical procedures as substantive tests based on the nature of the assertion begin tested, the existence of predictable relationships among data, the availability of reliable information upon which to base expectations, and the precision of expectations developed by the auditor.
AS 2310: The Confirmation Process – Defines the confirmation process; discusses the relationship of confirmations to the assessment of audit risk; identifies factors affecting the reliability of confirmations; indicates alternative procedures to be applied when responses to confirmations are not received; addresses the evaluation of the results of confirmation procedures; and specifically addresses the confirmation of accounts receivable.
AS 2315: Audit Sampling – Provides guidance for the planning, performing, and evaluating of audit samples.
2400 – Audit Procedures for Specific Aspects of the Audit
AS 2401: Consideration of Fraud in a Financial Statement Audit – Establishes requirements and provides direction to address the auditor’s responsibility to obtain reasonable assurance that the financial statements are not materially misstated as it relates to fraud.
AS 2405: Illegal Acts by Clients – Establishes the auditor’s responsibility for considering the possibility of illegal acts by a client and guidance on the auditor’s responsibility when a possible illegal act is detected.
AS 2410: Related Parties – Establishes requirements for the auditor’s consideration of the client’s identification of related parties and related party transactions, as well as how they are accounted for and disclosed.
AS 2415: Consideration of an Entity’s Ability to Continue as a Going Concern – Establishes the auditor’s responsibility to evaluate whether there is substantial doubt as to an entity’s ability to continue as a going concern for a reasonable period of time, including auditing procedures to be performed and any reporting responsibilities.
2500 – Audit Procedures for Certain Accounts or Disclosures
AS 2501: Auditing Accounting Estimates – Establishes guidance regarding obtaining sufficient appropriate audit evidence to support significant estimates in the financial statements.
AS 2502: Auditing Fair Value Measurements and Disclosures – Establishes standards to be applied in regard to obtaining sufficient appropriate audit evidence related to the measurement and disclosure of assets, liabilities, and components of equity that are presented or disclosed at fair value.
AS 2503: Auditing Derivative Instruments, Hedging Activities, and Investments in Securities – Provides guidance to the auditor on planning and performing procedures related to the accounting for and reporting on derivative instruments and hedging activities, addressing the assertions of existence or occurrence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure.
AS 2505: Inquiry of a Client’s Lawyer Concerning Litigation, Claims, and Assessments – Requires the auditor to perform certain procedures to obtain evidence about litigation, claims, and assessments, including inquiries of client management; obtaining a description and evaluation of litigation, claims, and assessments from management; examining relevant documents; obtaining written assurance from management regarding disclosure of unasserted claims; and requesting that management send an inquiry letter to lawyers consulted or retained in relation to those matters.
AS 2510: Auditing Inventories – Indicates that the observation of inventories is a generally accepted audit procedure and places a burden on the auditor to justify the opinion expressed on the financial statements when inventory has not been observed.
2600 – Special Topics
AS 2601: Consideration of an Entity’s Use of a Service Organization – Provides guidance to auditors of entities that use service organizations that become part of its information system and for auditors that issue reports related to the processing of transactions by a service organization for use by the auditors of the entity using it.
AS 2605: Consideration of the Internal Audit Function – Provides guidance to the auditor on the consideration of the work of internal auditors in forming an opinion on the financial statements and for obtaining direct assistance from internal auditors in performing the audit in accordance with PCAOB standards.
AS 2610: Initial Audits – Communications Between Predecessor and Successor Auditors – Requires an auditor in an initial engagement to communicate with the predecessor auditor as a prerequisite for accepting the engagement and establishes guidance for communication with the predecessor when the auditor discovers misstatements in financial statements reported on by the predecessor.
2700 – Auditor’s Responsibilities Regarding Supplemental and Other Information
AS 2701: Auditing Supplemental Information Accompanying Audited Financial Statements – Requires the auditor to perform audit procedures in relation to supplemental information to support an opinion as to whether or not the supplemental information is fairly stated.
AS 2705: Required Supplementary Information – Provides guidance to auditors as to the nature of procedures to apply to supplemental information required by the FASB, GASB, or FASAB and indicates when the auditor is required to report on required supplemental information.
AS 2710: Other Information in Documents Containing Audited Financial Statements – Establishes requirement for auditor to read other information included in documents that include the financial statements, excluding registrations statements filed with the SEC, to make certain that there are no inconsistencies with information included in the audited financial statements.
2800 – Conducting Audit Procedures
AS 2801: Subsequent Events – Requires the consideration of subsequent events by management and evaluation by the auditor, including those representing conditions existing at the balance sheet date and requiring adjustment to the financial statements, and those representing conditions that came into existence after the balance sheet date and requiring disclosure.
AS 2805: Management Responsibilities – Requires the auditor to obtain written representations from management as a component of an audit performed in accordance with PCAOB standards, including guidance as to specific representations to be obtained.
AS 2810: Evaluating Audit Results – Provides guidance to the auditor in making a determination as to the appropriateness and sufficiency of audit evidence.
AS 2815: The Meaning of “Present Fairly in Conformity with Generally Accepted Accounting Principles - Requires the auditor to determine, based on the requirements of the SEC, the accounting principles applicable to the company under audit and requires the auditor to determine if the principles applied by the entity are generally accepted, are appropriate under the circumstances, and if the financial statements are informative in relation to matters that will affect the use of the financial statements.
AS 2820: Evaluating Consistency of Financial Statements – Requires the auditor to evaluate the consistency of the financial statements, provides guidance for the evaluation, and describes the effects of the evaluation on the auditor’s report.
2900 – Post-Audit Matters
AS 2901: Consideration of Omitted Procedures After the Report Date – Requires the auditor to evaluate whether the opinion expressed can be supported despite the omitted procedure and, if not, requires the auditor to perform the procedure or a satisfactory alternative. If unable to do so, the auditor should consult with legal counsel as to responsibilities and the best course of action. If performance indicates that facts existing at the financial statement date would have affected the report, the auditor should follow the guidance in AS 2905.
AS 2905: Subsequent Discovery of Facts Existing at the Date of the Auditor’s Report – Upon discovery of facts not known to the auditor at the date of the report that would have been investigated if known at the time, requires the auditor to determine if the information is reliable and if it existed as of the date of the report. If so, the auditor is further required to determine if the information would have affected the auditor’s report and if there are parties likely to be relying on the financial statements that would attach importance to the information. Requires the auditor, upon making such a determination, to work with the client and perform procedures to make certain that the report is not inappropriately relied upon.
Auditor Reporting
3100 - Reporting on Audits of Financial Statements
AS 3101: Reports on Audited Financial Statements – Provides guidelines for the preparation of a standard audit report, circumstances calling for a modified report, and guidelines as to how the report will be modified.
AS 3110: Dating of the Independent Auditor’s Report – Requires the auditor to date the report no earlier than the date on which sufficient appropriate audit evidence is obtained and provides guidance for reporting events occurring after the date of the report but before its issuance and the reissuance of a report.
3300 – Other Reporting Topics
AS 3305: Special Reports – Provides guidance for preparing reports related to financial statements prepared in accordance with a comprehensive basis of accounting other than GAAP; related to specified elements, accounts, or items of a financial statement; to compliance with aspects of contractual agreements or regulatory requirements; to presentations designed to comply with contractual agreements or regulatory provisions; and related to financial information presented in prescribed forms or requiring a prescribed form or report.
AS 3310: Special Reports on Regulated Companies – Requires reports on regulated companies to address whether the financial statements present fairly, in all material respects, the financial position of the entity as of the balance sheet date and the results of its operations and cash flows for the period then ended in conformity with accounting principles generally accepted in the United States of America unless statements are for filing with its supervisory agency.
AS 3315: Reporting on Condensed Financial Statements and Selected Financial Data – Provides guidance for reporting on condensed information presented by a public entity that I required to provide complete audited financial statements to a regulatory agency at least annually and for reporting on selected financial data derived from audit financial statements presented in a document containing audited financial statements.
AS 3320: Association with Financial Statements – Specifies that an accountant is associated with financial statements upon consenting to the inclusion of the auditor’s name in a report, document, or written communication containing the statements, whether audited or unaudited.
Matters Relating to Filings Under Federal Securities Laws
AS 4101: Responsibilities Regarding Filings Under Federal Securities Statutes – Establishes the auditor’s responsibility for financial representations in documents filed under federal securities statutes.
AS 4105: Reviews of Interim Financial Information – Establishes standards and provides guidance related to the nature timing, and extent of procedures that should be performed in a review of interim financial information.
Other Matters Associated with Audits
AS 6101: Letters for Underwriters and Certain Other Requesting Parties – Provides guidance for performing engagements to provide comfort letters to underwriters and others in relation to financial statements and financial information included in registration statements filed with the SEC.
AS 6105: Reports on the Application of Accounting Principles – Provides guidance to an accountant preparing a written report on the application of accounting principles to specified transactions, or the type of opinion that may be rendered on a particular entity’s financial statements or providing oral advice to be used by a principal to a transaction in determining how accounting principles apply to a specific transaction or the type of opinion that may be rendered on a particular entity’s financial statements.
AS 6110: Compliance Auditing Considerations in Audits of Recipients of Governmental Financial Assistance – Provides guidance to an auditor engaged to audit a governmental entity under PCAOB standards and to report on compliance with laws and regulations under Government Auditing Standards.
AS 6115: Reporting on Whether a Previously Reported Material Weakness Continues to Exist – Allows an auditor to report on whether a previously reported material weakness continues to exist if the auditor has audited the entity’s financial statements and internal control or has been engaged to do so.
151
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a ____ will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired,
certain engagements also require the accountant to comply with the requirements of a regulatory body.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired, certain engagements also require the accountant to comply with the requirements of a regulatory body.
152
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Co_____ in making a determination as to whether or not independence is impaired,
certain engagements also require the accountant to comply with the requirements of a regulatory body.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired, certain engagements also require the accountant to comply with the requirements of a regulatory body.
153
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not i__________ is impaired,
certain engagements also require the accountant to comply with the requirements of a regulatory body.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired,
certain engagements also require the accountant to comply with the requirements of a regulatory body.
154
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired,
certain e___________s also require the accountant to comply with the requirements of a regulatory body.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
While a CPA will follow the requirements of the AICPA Code of Professional Conduct in making a determination as to whether or not independence is impaired,
certain engagements also require the accountant to comply with the requirements of a regulatory body.
155
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of is_____s,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
156
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a ____ practices before the Securities and Exchange Commission (SEC) and performs audits of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
157
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs a____s of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
158
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the SEC and p______s audits of issuers,
the requirements of the PCAOB apply;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of issuers,
the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
159
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal g__________ agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
160
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonf______l governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
161
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving g__________ financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
162
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial as_______,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
163
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental f_______ assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
164
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving g_________ financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
165
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity r______ing governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
166
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the e_________ is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
167
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the e______ requirements of the Government Accountability Office Government Auditing Standards;
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
168
Nonfederal Governmental Agency
| GAGAS Auditing Standards
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance,
the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards;
169
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit p___s are required to comply with the independence requirements of the Department of Labor.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of Labor.
170
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of L___r.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of Labor.
171
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of e_______ benefit plans are required to comply with the independence requirements of the Department of Labor.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of Labor.
172
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the in_________ requirements of the Department of Labor.
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of Labor.
173
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• Audits of Issuers
PCAOB requirements
• Nonfederal Governmental Agency
GAGAS Auditing Standards
• Employee Benefit Plans
Independence requirements of the Department of Labor
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
* If a CPA practices before the Securities and Exchange Commission (SEC) and performs audits of issuers, the requirements of the Public Company Accounting Oversight Board (PCAOB) apply;
* If performing an audit of a nonfederal governmental agency or an entity receiving governmental financial assistance, the engagement is performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and must comply with the ethical requirements of the Government Accountability Office Government Auditing Standards; and
* An accountant performing audits of employee benefit plans are required to comply with the independence requirements of the Department of Labor.
174
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• Audits of Issuers
________ requirements
• Nonfederal Governmental Agency
G_______ Auditing Standards
• Employee Benefit Plans
Independence requirements of the Department of L____
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• Audits of Issuers
PCAOB requirements
• Nonfederal Governmental Agency
GAGAS Auditing Standards
• Employee Benefit Plans
Independence requirements of the Department of Labor
175
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• Audits of Is_____s
PCAOB requirements
• Nonf_______ Governmental Agency
GAGAS Auditing Standards
• Employee B______ Plans
Independence requirements of the Department of Labor
Securities and Exchange Commission (SEC)
Government Accountability Office (GAO) and
The Department of Labor (DOL)
• Audits of Issuers
PCAOB requirements
• Nonfederal Governmental Agency
GAGAS Auditing Standards
• Employee Benefit Plans
Independence requirements of the Department of Labor
176
The Securities and Exchange Commission (SEC)
“The m______ of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
177
The Securities and Exchange Commission (SEC)
“The mission of the ___ is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
178
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect i_______s, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
179
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient m_____s, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
180
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate c______ formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
181
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain f___, orderly, and efficient markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
182
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and ef______ markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
183
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, or____ly, and efficient markets, and facilitate capital formation.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
184
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital fo______.”
The Securities and Exchange Commission (SEC)
“The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.”
185
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of p_____y traded companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
186
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to p______ the public from potentially unscrupulous practices of publicly traded companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
187
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to
require publicly-held companies to issue audited financial statements, and o______ auditors of publicly-held companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
188
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to re_____ publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
189
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue a____ed financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
190
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee a_____s of publicly-held companies.
The Securities and Exchange Commission (SEC)
The Securities Act of 1933 and the Securities and Exchange Act of 1934 were designed to protect the public from potentially unscrupulous practices of publicly traded companies.
They established the SEC and gave it the authority to require publicly-held companies to issue audited financial statements, designate the acceptable basis or bases of accounting for publicly-held companies, and oversee auditors of publicly-held companies.
191
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate a______s of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
192
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to de_____ and maintain auditing standards applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
193
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and m_______ auditing standards applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
194
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing s_______s applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
195
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to re______ auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
196
The Securities and Exchange Commission (SEC)
The SEC has designated the _______ to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
197
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more res_______ than those imposed on auditors of nonpublic entities
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more restrictive than those imposed on auditors of nonpublic entities,
such as the prohibition against performing almost any nonassurance services for an audit client and the requirement to disclose audit and nonaudit fees earned.
198
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more restrictive than those imposed on auditors of non______ entities
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more restrictive than those imposed on auditors of nonpublic entities,
such as the prohibition against performing almost any nonassurance services for an audit client and the requirement to disclose audit and nonaudit fees earned.
199
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more restrictive than those imposed on auditors of nonpublic entities,
such as the prohibition against performing almost any nonas________ services for an audit client and the requirement to disclose audit and nonaudit fees earned.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In some cases, the requirements imposed are more restrictive than those imposed on auditors of nonpublic entities,
such as the prohibition against performing almost any nonassurance services for an audit client and the requirement to disclose audit and nonaudit fees earned.
200
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eli______ing as many differences between those requirements and those of the PCAOB as is reasonably possible.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, however, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eliminating as many differences between those requirements and those of the PCAOB as is reasonably possible.
201
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, however, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eliminating as many differences between those r___________s and those of the PCAOB as is reasonably possible.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, however, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eliminating as many differences between those requirements and those of the PCAOB as is reasonably possible.
202
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, however, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eliminating as many differences between those requirements and those of the P_____ as is reasonably possible.
The Securities and Exchange Commission (SEC)
The SEC has designated the PCAOB to regulate auditors of publicly-held entities and to develop and maintain auditing standards applicable to their audits.
In most cases, however, the Auditing Standards Board (ASB) of the AICPA has evaluated GAAS with the intention of eliminating as many differences between those requirements and those of the PCAOB as is reasonably possible.
203
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for in_______ing how the federal government spends taxpayer money.
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
204
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the fed____ government spends taxpayer money.
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
205
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxp____ money.
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
206
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of C_____ss responsible for investigating how the federal government spends taxpayer money.
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
207
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
It is also responsible for s___ing generally accepted government auditing standards (GAGAS), which are issued in a document referred to as the “Yellow Book.”
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
It is also responsible for setting generally accepted government auditing standards (GAGAS), which are issued in a document referred to as the “Yellow Book.”
208
GAO setting GAGAS
---
Government Accountability Office (GAO)
setting
Generally Accepted Government Auditing Standards (GAGAS) or “Yellow Book.”
Independence Standards of the Government Accountability Office (GAO)
The GAO is an agency of Congress responsible for investigating how the federal government spends taxpayer money.
It is also responsible for setting generally accepted government auditing standards (GAGAS), which are issued in a document referred to as the “Yellow Book.”
209
Independence Standards of the Government Accountability Office (GAO)
The Y_____ Book is broken down into sections that include:
* Government Auditing – Foundation and Ethical Principles
* Standards for Use and Application of GAGAS
* General Standards
* Standards for Financial Audits
* Standards for Attestation Engagements
* Fieldwork Standards for Performance Audits
* Reporting Standards for Performance Audits
Independence Standards of the Government Accountability Office (GAO)
The Yellow Book is broken down into sections that include:
* Government Auditing – Foundation and Ethical Principles
* Standards for Use and Application of GAGAS
* General Standards
* Standards for Financial Audits
* Standards for Attestation Engagements
* Fieldwork Standards for Performance Audits
* Reporting Standards for Performance Audits
210
Independence Standards of the Government Accountability Office (GAO)
The General S________s include the GAO’s separate, and somewhat more restrictive, independence requirements that apply when performing an engagement in accordance with GAGAS.
Independence Standards of the Government Accountability Office (GAO)
The General Standards include the GAO’s separate, and somewhat more restrictive, independence requirements that apply when performing an engagement in accordance with GAGAS.
