Audit

Question 1

Covered members or their firms that were independent when they first issued an audit report may reissue that report or consent to its incorporation by reference, even if they are no longer independent, so long as they do not perform new procedures that would require updating the _____ of the original report.

Answer 1

Date

Question 2

It would impair ______ for a covered member to agree to indemnify an attest client for losses resulting from the client’s own acts.

Answer 2

Independence

Question 3

A member in public practice may not sign a current-year audit report if it has ______ from the client for services provided more than one year prior.

Answer 3

Unpaid Fees

Question 4

If a covered member has or is committed to acquire any direct (whether material or not) or any material indirect financial interest in an attest client, independence is _____

Answer 4

Impaired

Question 5

Only if interests are both _____ and _____ is independence not impaired.

Answer 5

Indirect and Immaterial

Question 6

These rules about financial interests normally apply only to covered members; however, even if a partner or professional employee of a firm is not a covered member, that person (and his or her immediate family, or any group of such persons acting together) cannot own more than ___ of a client’s ownership interests without impairing independence.

Answer 6

5%

Question 7

If covered members receive or learn they will receive an unsolicited financial interest in an attest client (perhaps through gift or inheritance) that is either a direct interest or a material indirect interest, independence will not be impaired if they:

1) Dispose of the interest as soon as practicable but not later than _____ after having both knowledge of the interest and gaining the right to dispose of it; and
2) Do not participate on the attest engagement team after learning of the interest and before disposing of it.

Answer 7

30 days