AUD 2014

Question 1

incompatible duties

Answer 1

collection of A/R recepits and maintaining AR records)custody and recording of assets

Question 2

compilation report

Answer 2

no assurance

Question 3

letter to underwriter

Answer 3

comfort letter-negative assurance

Question 4

audit of public co adhere to IAS

Answer 4

only opinion on FS (not IC)

Question 5

parralel simulation

Answer 5

use auditors version of client system to process client data

Question 6

review of nonpublic doesnt include

Answer 6

communication with related parties

Question 7

tracing bills of lading to sales invoices

Answer 7

shipments to customers were invoiced

Question 8

who promulgates GAS standards

Answer 8

GAO-Generel Acctg Office

Question 9

check payable to cash

Answer 9

can be cashed by anyone-IC defeciency

Question 10

floor to sheet

Answer 10

completeness

Question 11

sheet to floor

Answer 11

existence

Question 12

sales returns JE

Answer 12

DR Sales Returns CR A/R

Question 13

auditing through the CPU

Answer 13

is not harder than auditing around the CPU

Question 14

PPS Sampling Auditor can

Answer 14

control risk of incorrect acceptance by specifying the risk level when planning the sample

Question 15

systematic selection

Answer 15

selections need not be pre-numbered, auditor will chose every nth one.

Question 16

a/p in planning

Answer 16

high level, both financial and non-financial data

Question 17

if CR max

Answer 17

no testing IC

Question 18

auditor incurs a scope limitation (public co)on whether a previously reported material weakness continues to exist

Answer 18

disclaimer or withdraw

Question 19

CPA not in public practice must be

Answer 19

objective; does not need to be independent

Question 20

Type I Sub Event

Answer 20

existing on or before BS date-Adj to FS

Question 21

Type II Sub Event

Answer 21

Non-recognized-existing after BS date-disclosure only

Question 22

fin forecast vs fin projection

Answer 22

forecast-expected projection-hypothetical

Question 23

compilation of prospective

Answer 23

has caveat that results may not be acheieved/prospective = FF and FP

Question 24

ER

Answer 24

Proforma-MD&A

Question 25

EA, C

Answer 25

Prospective(EAC), IC, Compliance

Question 26

Proforma

Answer 26

future or kypothetical event by showing how it might have affect historical FS

Question 27

acceptance and continuance policies

Answer 27

firms ability to meet deadlines/firms ability to staff engagement/independence/integrity of mgmt

Question 28

covered member

Answer 28

on engagement team-significant influence-ex) PARTNER or personnel more than 10hours of non-attest(income taxes- no direct FI or material indirect FI

Question 29

covered member rules for fam

Answer 29

immediate fam(spouse, dependent), close relatives

Question 30

review of interim FS you consider

Answer 30

results of AP performed with respect to current years FS

Question 31

GAS report on compliance with L&R should contain statement

Answer 31

negative assurance on items not tested and positive assurance on items tested for compliance

Question 32

reviewing an interncal control questionnaire does not provide

Answer 32

discovery of illegal acts

Question 33

agreed upon procedures

Answer 33

IAMSURE-no assurance

Question 34

proforma

Answer 34

how it affect HISTORICAL info

Question 35

MR

Answer 35

preparation and fair presentation of FS in accordance with the applicable financial reporting framework

Question 36

MR in regards to IC

Answer 36

implementation, design, and maintenance

Question 37

Unmodified opinion with emphasis of matter or other matter order of paragraphs

Answer 37

I-MR-AR-Opinion-Eofmatter-Other Matter

Question 38

those charged with governance

Answer 38

board of directors and audit committee

Question 39

examination

Answer 39

(audit type of examination) type of attestation engagement

Question 40

example of clients accountign systems

Answer 40

Oracle

Question 41

audit strategy

Answer 41

scope/reporting objectives/focus of audit