Audit Standards

Question 1

What is a compliance audit?

Answer 1

Audits performed to determine if entity is complying with applicable laws and regulations

Question 2

What is an operational audit?

Answer 2

Performed by internal auditors to determine is management’s policies are being followed and evaluate compliance with internal controls

Question 3

What is a financial statement audit?

Answer 3

Performed by CPAs and determine if F/S are fairly presented in accordance with applicable financial reporting framework

Question 4

What are examples of general purpose frameworks?

Answer 4

GAAP
IFRS
FFAS
GASB

Question 5

What are examples of special purpose frameworks?

Answer 5

Cash
Tax
Regulatory
Contractual

Question 6

What is an unconditional requirement?

Answer 6

“must be” or “is required to”

Question 7

What is a presumptively mandatory requirement?

Answer 7

“should”

Question 8

What are the 10 Generally Accepted Auditing Standards?

Answer 8

TIPPICANOE - measure quality of auditor's performance
1)  General Standards:
Training and proficiency
Independence
Professional care - due
2) Fieldwork Standards:
Planning and supervision
Internal controls
Corroborative audit evidence
3) Reporting Standards:
Accounting principles in conformity with US GAAP
No new accounting principles applies - consistency
Omitted informative disclosures - none
Expression of opinion

Question 9

What types of attestation engagements should an auditor be independent for?

Answer 9

CARES
Compilations (unless indicate lack of independence)
Agreed upon procedures
Reviews
Examinations
Special reports

Question 10

What types of engagements is independence not required?

Answer 10

Compilations (when lack of independence indicated)
Taxes
Consultations
F/S preparation
Bookkeeping or payroll