AUD Flashcards
1
Q
What are the different requirements regarding confirmations of accounts receivable under ISA, AICPA, & PCAOB?
A
ISA: Not required. It is an optional procedure based on auditor’s judgment
AICPA & PCAOB: Yes presumptively required unless accounts receivable are immaterial, the use of confirmations would be ineffective or the combined assessed level of inherent and control risk is low.
2
Q
Tainting percentage formula
A
(BV-AV)/BV
3
Q
Is a review an assurance engagement, attestation engagement, or both?
A
Both
4
Q
What is an attestation engagement?
A
when a CPA is engaged to issue or does issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about subject matter, that is the responsibility of another party.
