AUD-Lesson 2

Question 1

When must independence be maintained?

Answer 1

ERAS

Examinations

Reviews

Agreed-upon procedure engagements leading to findings

Special Reports

Question 2

If a CPA is performing personal financial planning services, what requirements must it adhere to?

Answer 2

SSPFPS

Statements on Standards in Personal Financial Planning Services

Question 3

What are the five issues that are addressed by the SSPFPS?

Answer 3

POD-IM

Planning the engagement
Obtaining and analyzing information
Developing and communicating recommendations
Implementation engagement
Monitoring and updating engagements

Question 4

What law established the PCAOB?

Answer 4

Sarbanes-Oxley Act

Question 5

What does the Private Securities Litigation Reform Act of 1995 establish?

Answer 5

RIG

Tests to detect

Related Party Transactions

Illegal Acts

Going Concern Doubts

Question 6

For what standards is the PCAOB responsible?

Answer 6

Auditing
Attestation
Quality Control
Ethics Standards (Independence & Quality Control)

Question 7

Under AS 15, Audit Evidence, what are the procedures designed to support management’s assertions?

Answer 7

PERCV

Presentation and disclosure

Existence or occurrenc

Rights and obligations

Completeness

Valuation or allocation

Question 8

What are the audit procedures?

Answer 8

ICORRIIA

Inquiry

Confirmation

Observation

Recalculation

Reporformance

Inspection of tangible assets