AUD 5

Question 1

PCAOB standards require the CPA firm to perform an integrated audit of an issuer, which “includes” audits of both the FS and effectiveness of ICs

Answer 1

PCAOB requires the same auditor to perform both

Question 2

PCAOB standards require the CPA firm to perform an integrated audit of an issuer, which “includes” audits of both the FS and effectiveness of ICs

Answer 2

PCAOB requires the same auditor to perform both

Question 3

Compilations are governed by SSARS

Answer 3

so are preparations, or review of historical FSs for nonissuers

Question 4

A compilation of prospective FS is not intended to provide assurance on the prospective FS or the assumptions underlying such statements

Answer 4

n/a

Question 5

Hypothetical assumptions are used in financial “projections”

Answer 5

Financial projections are “restricted use” reports, whose use is restricted to the responsible party and those third parties with whom the responsible party is negotiating directly

Question 6

Examination = Reasonable assurance

Answer 6

AUP = No assurance provided

Question 7

Examination = Reasonable assurance

Answer 7

AUP = No assurance provided

Question 8

The scope of the auditors testing of ICs is required to be included in the report on ICs and compliance with laws and regs in accordance with GAS (the yellow book)

Answer 8

q