Definitions

Question 1

What is SSARS?

Answer 1

Statements on Standards for Account and Review services. These are not GAAS.

Question 2

Define Financial Statement Auditing.

Answer 2

It is a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users

Question 3

What are SASs?

Answer 3

Statements on Auditing standards which are pronouncement of the Auditing Standards Board (ASB) and are authoritative interpretations of the 10 GAAS and departures therefrom must be justified.

Question 4

What is a review?

Answer 4

A review is an engagement undertaken to achieve, through the performance of inquiry and analytical procedures, limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with GAAP, if applicable, with a comprehensive basis of accounting other than GAAP.

Question 5

Define engagement

Answer 5

It is a situation wherein the practitioner renders professional services

Question 6

Define inquiry

Answer 6

It is the seeking of appropriate information from knowledgeable persons inside or outside the entity with the approval of mgmt.

Question 7

Define confirmation process

Answer 7

It is the inquiry that obtains a written response from independent parties to corroborate information contained in the accounting records