Chapter 3 - Engagement Acceptance, Planning, and Risk Assessment Flashcards
1
Q
Timing of Audit Procedures
A
TYPE & SCOPE & WHEN
2
Q
Assertions made by management
A
COVERU
3
Q
Audit Risk Model
A
Risk that auditor will issue wrong opinion
4
Q
Audit Risk Formula
A
AR=IRCRDR
5
Q
Fraud Environment
A
Pressure & Opportunity & Rationalization
6
Q
Analytical Procedures are REQUIRED
A
Planning Stage & Final Review Stage
7
Q
NET
A
Nature & & Extent & Timing
8
Q
GAAP Issue
A
Except For OR Adverse
9
Q
GAAS Issue
A
Except For OR Disclaimer
10
Q
Substantive Procedures
A
Huh
11
Q
Risk Assessment & Analytical Procedures
A
ALWAYS necessary in F/S Audit
12
Q
COSO Framework
A
CRIME
- Control Environment
- Risk Assessment
- Information and Communication Systems
- Monitoring
- External Control Activities
13
Q
PAIDTIPS
- Prenumbering docs
- Authorization of trans
- Independent checks
- Documentation
- Timely and appr. perf. reviews
- Info and processing controls
- Physical controls for safeguarding
- Segregation of duties
A
Strong Internal Controls
14
Q
Documenting IC - FIND
A
Flowcharts
IC Questionnaire or Checklist
Narrative
Documentation from client
15
Q
Substantive vs. Control Testing
A
Read into more
16
Q
Test of Controls REQUIRED
A
IT
17
Q
Audit Evidence Hierarchy
A
- Auditor Knowledge
- External Evidence
- Internal Evidence
- Oral Evidence
