AUD 2014 Flashcards
incompatible duties
collection of A/R recepits and maintaining AR records)custody and recording of assets
compilation report
no assurance
letter to underwriter
comfort letter-negative assurance
audit of public co adhere to IAS
only opinion on FS (not IC)
parralel simulation
use auditors version of client system to process client data
review of nonpublic doesnt include
communication with related parties
tracing bills of lading to sales invoices
shipments to customers were invoiced
who promulgates GAS standards
GAO-Generel Acctg Office
check payable to cash
can be cashed by anyone-IC defeciency
floor to sheet
completeness
sheet to floor
existence
sales returns JE
DR Sales Returns CR A/R
auditing through the CPU
is not harder than auditing around the CPU
PPS Sampling Auditor can
control risk of incorrect acceptance by specifying the risk level when planning the sample
systematic selection
selections need not be pre-numbered, auditor will chose every nth one.
a/p in planning
high level, both financial and non-financial data
if CR max
no testing IC
auditor incurs a scope limitation (public co)on whether a previously reported material weakness continues to exist
disclaimer or withdraw
CPA not in public practice must be
objective; does not need to be independent
Type I Sub Event
existing on or before BS date-Adj to FS
Type II Sub Event
Non-recognized-existing after BS date-disclosure only
fin forecast vs fin projection
forecast-expected projection-hypothetical
compilation of prospective
has caveat that results may not be acheieved/prospective = FF and FP
ER
Proforma-MD&A
EA, C
Prospective(EAC), IC, Compliance
Proforma
future or kypothetical event by showing how it might have affect historical FS
acceptance and continuance policies
firms ability to meet deadlines/firms ability to staff engagement/independence/integrity of mgmt
covered member
on engagement team-significant influence-ex) PARTNER or personnel more than 10hours of non-attest(income taxes- no direct FI or material indirect FI
covered member rules for fam
immediate fam(spouse, dependent), close relatives
review of interim FS you consider
results of AP performed with respect to current years FS
GAS report on compliance with L&R should contain statement
negative assurance on items not tested and positive assurance on items tested for compliance
reviewing an interncal control questionnaire does not provide
discovery of illegal acts
agreed upon procedures
IAMSURE-no assurance
proforma
how it affect HISTORICAL info
MR
preparation and fair presentation of FS in accordance with the applicable financial reporting framework
MR in regards to IC
implementation, design, and maintenance
Unmodified opinion with emphasis of matter or other matter order of paragraphs
I-MR-AR-Opinion-Eofmatter-Other Matter
those charged with governance
board of directors and audit committee
examination
(audit type of examination) type of attestation engagement
example of clients accountign systems
Oracle
audit strategy
scope/reporting objectives/focus of audit
