Auditing and Related Services Flashcards
PSRE 2400 (Engagements to Review Financial Statements) applies to…
Review of historical financial information by a practitioner other than the entity’s auditor
Inquiries and analytical procedures ordinarily form the basis for which type of engagement?
Review
The practitioner should accept an assurance engagement only if…
His conclusion is to be contained in a written report
A practitioner is associated with financial information when:
(1) the practitioner attaches a report to that financial information
(2) the practitioner consents to the use of his/her name in a professional connection
The overall objectives of the auditor in conducting an audit of F/S (2)
- To obtain reasonable assurance about whether the financial statements taken as a whole are free from material misstatement
- To report on the financial statements
Who has primary responsibility for the performance of an audit?
The partner in charge of the engagement.
What is the proper organizational role of internal auditing?
To serve as an independent, objective assurance and consulting activity that adds value to operations
A primary purpose of an operational audit is to provide…
A measure of management performance in meeting organizational goals
Governmental auditing often extends beyond examinations leading to the expression of opinion on the fairness of financial presentation, and includes audits of efficiency, economy, effectiveness, and also…
Compliance.
Which type of audit best describes the audit of a taxpayer’s return by a BIR auditor?
Compliance audit
(T/F) Consulting services do NOT ordinarily involve external reporting.
True.
An objective of a performance audit is to determine whether an entity’s
Specific operating units are functioning economically and efficiently
The internal auditing department’s responsibility for deterring fraud is to…
Examine and evaluate the system of internal control
What is the primary reason why internal auditors review the adequacy of the company’s internal control system?
To determine whether the internal control system provides reasonable assurance that the company’s objectives and goals are met efficiently and economically.
