Auditing Standard 8-15, 16,17,18

Question 1

the aicpa focuses on 13 assertions in three categories but the pcaob focuses on 5 assertions

Pcaob and AICPA are pretty similar in many things

Answer 1

existence 
completeness
rights and obligations
valuation or allocation
presentation and disclosure

Question 2

critical accounting estimate

Answer 2

an accounting estimate where A) the nature of the estimate is material due to the levels of subjectivity and judgement necessary to account for highly uncertain matters or the susceptibility of such matters to change and B) the impact of the estimate on financial condition or operating performance is material

Question 3

critical acc policies and practices

Answer 3

A company’s accounting policies and practices that are both most important to the portrayal of the company’s financial condition and results, and require management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain.

Question 4

matters to be communicated to the audit committee

Answer 4

appointment and retention-issues discussed with management

establish an understanding of terms of audit

obtaining info and communicating strategy-inquire about relevant matters to the audit

communicate audit strategy and significant risks

Question 5

communicating results of audit

Answer 5

acc policies, estimates, and unusual transactions

evaluation of quality of financial reporting

auditors responsibility for other info

difficult or contentious matters-where auditor consulted outside audit team

managemetn consultation with other cpas

going concern matters

corrected misstatements

departures from standard report

material written communications

disagreement with management even if resolved

difficulties encountered- delays, timing etc

matters that are significant to oversight of fin reporting function

Question 6

form

Answer 6

written
and oral unless otherwise specified
should be timely and before release date

Question 7

supplemental information

Answer 7

info that is ancillary to the audited financial statements
derived from company’s books and records
covered by an independent public acc report on that information in relation to the financial statements that are audited in accordance with pcaob standards

Question 8

audit procedures for supplemental info

Answer 8

understanding of purpose/criteria
methods used and consistency
inquire about significant assumptions
verify that info agrees to the f/s or other records
test completeness and accuracy of info
evaluate compliance with regulatory requirements
obtain management representation

may submit combined or separate

Question 9

if express a modified opinion on f/s then express a modified opinion on

Answer 9

supplementary info same with adverse or disclaimer

Question 10

auditors objective is to make sure

Answer 10

supplemental information is presented fairly in relationship to the f/s as a whole