Day 13

Question 1

The function of Cash Receipts is part of the entity’s _______ department

Answer 1

Treasurer’s

Question 2

What reports are included with Attestation Engagements?

Answer 2

• Examination Report
• Review Report
• Agreed-Upon-Procedures Report

Question 3

Special Purpose FS: When to use an Emphasis-of-Matter paragraph?

Answer 3

Required when:

• FS are prepared in accordance with a special purpose framework
• Refers to a note in the FS that describes the framework
• States that the Special purpose Framework is a basis of accounting OTHER THAN GAAP

Question 4

What does an Other Matter paragraph do?

Answer 4

Restricts the use

Question 5

What is the format of Emphasis-of-Matter / Other Matter / Explanatory paragraph?

Answer 5

DORCS

Date of previous report
Opinion type previously issued
Reason for prior opinion
Changes that have occured
Statement the “opinion … is different”

Question 6

GAGAS: Basic elements of a Report on Compliance include what stmt?

Answer 6

Include a Stmt: the audit should be planned to obtain reasonable assurance about whether “Noncompliance could have a material affect on the programs audited”

Question 7

What is the most reliable way to identify a contingent liability?

Answer 7

Standard Bank Confirmation

Question 8

An entity appropriately changed the accounting for investments from cost method to equity method. This change had a material effect on the FS.

What should the auditor do?

Answer 8

Required to add: Emphasis-of-Matter paragraph

Question 9

True or false: Testifying as an expert witness in accounting and audit matters is covered under SSAE?

Answer 9

False

Question 10

Presumptively Madatory

Answer 10

SHOULD

Question 11

What authoritative body concerns the accountant with unaudited FS of an entity that is NOT required to file FS with an agency regulating the issuance of the entity’s securities?

Answer 11

Accounting and Review Services Committee

Question 12

What should Successor Auditor do when they discover possible misstatements in the client’s FS reported on by a predecessor auditor?

Answer 12

Ask the client to arrange a meeting with the predecessor auditor

Question 13

“In our opinion, because of the significance of the matter … the accompanying consolidated FS do not present fairly the financial position…”

What opinion?

Answer 13

Adverse

Question 14

TRACE = ?

Answer 14

Completeness

Question 15

Vouch = ?

Answer 15

Existence

Question 16

The auditor is planning to use AP Confirmations. The use of payable confirmations will test what assertion?

Answer 16

Existence and Completeness