Audit 4 Flashcards
Should a report on significant deficiencies be restricted?
Yes- to those of governance, management, etc
What is kiting?
When receipt date per bank is recorded in a diff period that disbursement date
What is a control procedure deficiency?
Either Operating or Design
When can an auditor report significant deficiencies?
During or after the audit - as long as it’s beofre the Audit Report Date
When is best to use Analytical Procedures?
Income Statement - bec. more predictable than Balance Sheet
Segregation of Duties:
Means to separate the different functions. 3 Categories are: Authorization, Custodial, and Record-Keeping
Substantive Tests is NOT used for:
Test of Controls
Authorization:
Sales order and Credit
Record Keeping:
Billing/AR/Accounting
Custody:
Warehouse and Shipping
Audit Committee
Volunteers that serve as bridge between Auditor and the board of directors, establish control environment
Audit Docs:
PCAOB - 7 years, 60 Days, AICPA - 5 years, 45 Days
Both significant deficiencies and material weaknesses should be told to mngmnt within:
60 days of report
Other items told to management should be:
Before release of report
When is contingent fees allowed?
By compilations if disclosed, and If CPA reps client in exam of tax return
