Audit review notes SFC

Question 1

Issuer of an auditor

Answer 1

subject to PCOAB

Question 2

objectives of an audit financial statement

Answer 2

obtain reasonable assurance that the financial statements are free from error.

Question 3

Assertion: existence

Answer 3

assets, liabilities and equity interests

Question 4

rights and obligations

Answer 4

entity holds or controls the right to assets and liabilities are the obligations of the entity.

Question 5

completeness

Answer 5

everything that should’ve been recorded is recorded and all related disclosures

Question 6

accuracy

Answer 6

amounts have been recorded properly

Question 7

cutoff

Answer 7

transactions and events have been recorded in the correct accounting period

Question 8

classification

Answer 8

transactions and events have been recorded in the proper accounts.

Question 9

presentation

Answer 9

transactions and events are appropriate aggregated or disaggregated

Question 10

SSAR review

Answer 10

provides limited assurance, is an attest engagement, does not need to have an understanding of internal controls

Question 11

compliations

Answer 11

provides no assurance, is an attest engagement. auditor does not have to be independent

Question 12

prep of financial statements

Answer 12

provides no assurance, is not an attest engagement, no independence needed

Question 13

SSAE-examination

Answer 13

provides reasonable assurance that the subject matter is fairly presented, does not deal with historical financials

Question 14

assestation of financial review

Answer 14

not a financial review statement

Question 15

agreed upon procedures

Answer 15

performs procedures and reports findings based on the criteria set by the specified parties.

Question 16

AICPA code of conduct

Answer 16

Cpa’s should be competent and help other Cpa’s out

Question 17

Self interest threat

Answer 17

own financial interests will influence the auditor’s behavior

Question 18

self review threat

Answer 18

if they audited previously, may not evaluate previous judgement services

Question 19

bias threat

Answer 19

take a stance that is not political, ideological, social

Question 20

familiarity threat

Answer 20

you know the person

Question 21

unde influence threat

Answer 21

external pressures could result in error

Question 22

management threat

Answer 22

taking on roles on behalf of management

Question 23

structural threat

Answer 23

in conjunction with government