Audit review notes SFC Flashcards
Issuer of an auditor
subject to PCOAB
objectives of an audit financial statement
obtain reasonable assurance that the financial statements are free from error.
Assertion: existence
assets, liabilities and equity interests
rights and obligations
entity holds or controls the right to assets and liabilities are the obligations of the entity.
completeness
everything that should’ve been recorded is recorded and all related disclosures
accuracy
amounts have been recorded properly
cutoff
transactions and events have been recorded in the correct accounting period
classification
transactions and events have been recorded in the proper accounts.
presentation
transactions and events are appropriate aggregated or disaggregated
SSAR review
provides limited assurance, is an attest engagement, does not need to have an understanding of internal controls
compliations
provides no assurance, is an attest engagement. auditor does not have to be independent
prep of financial statements
provides no assurance, is not an attest engagement, no independence needed
SSAE-examination
provides reasonable assurance that the subject matter is fairly presented, does not deal with historical financials
assestation of financial review
not a financial review statement
agreed upon procedures
performs procedures and reports findings based on the criteria set by the specified parties.
AICPA code of conduct
Cpa’s should be competent and help other Cpa’s out
Self interest threat
own financial interests will influence the auditor’s behavior
self review threat
if they audited previously, may not evaluate previous judgement services
bias threat
take a stance that is not political, ideological, social
familiarity threat
you know the person
unde influence threat
external pressures could result in error
management threat
taking on roles on behalf of management
structural threat
in conjunction with government
