Ethics

Question 1

Audit - Provides

Answer 1

F/S presented fairly based on framework

Reasonable assurance fraud/material misst will be detected

Question 2

Purpose - Basic Element

Answer 2

Report on F/S; not IC assurance

Assess significant est made by mgmt

Question 3

Non Issuer Audit

Answer 3

ASB- clarified audit standards
GAAS
Free from material error

Question 4

Issuer Audit

Answer 4

PCAOB
GAAP
F/s opinion fair in all material aspects of Financial pos, ops & cash flow

Question 5

GAAP departure

Answer 5

Description
Effects of
Why GAAP misleading
Reason for departure

Question 6

Acct Principle change

Answer 6

New GAAP principle
Conforms to GAAP
Adequet disclosure
Justified change

Question 7

GAO (Yellow Book) reports

Answer 7

GAGAS
(Audit & IC) & Compliance
Single Audit

Question 8

GAO Principles

Answer 8

Govt resources
Objectivity
Public interest
Integrity
Avoid conflicts

Question 9

GAO Impairment

Answer 9

Personal
External
Organizational
24 CPE (2y)
External QC Report

Question 10

Reasonable Assurance & Responsibilty to detect

Answer 10

High level that material misst is detected

Procedues may/may not be extended if analysis indicates existence of fraud rick

Question 11

AICPA Code Conduct & Rules

Answer 11

Prof responsibility
Improve accountancy
Public confidence

Independence- direct & material indirect
Integrity
Objectivity

Question 12

Release of Client Info

Answer 12

CPA review
AICPA ethics
Subpheona
Review only- CPA firm buyers

Question 13

SEC Independence

Answer 13

Lisc
Independent & objective
No client investment in CPA firm
No Firm/Family investment <5% in client
Credit cards <10k
* 1 year cool off period

Question 14

PCOAB Independence

Answer 14

No tax svcs FROR
Tax & other svcs- Audit commit approval
No contingent fees
5% firm disc
2 year cool off
7 year doc retention

Question 15

Covered Members

Answer 15

Attest team
Position influence
Partner same office
Partners/managers < 10 hours no attest svcs

Question 16

IMF

Close relationship

Answer 16

Spouse
Dependent children

Parents
Siblings
Non dependent children

Question 17

Independence Threats

Answer 17

Financial- 3rd party immaterial OK
Family
Employment- POPS
Consulting internal
Safeguards

Question 18

MIPP

Answer 18

Family
Adverse impact
Advocacy
Self interest
Self review
Undue influence
Mgmt participation

Question 19

Assertions

Answer 19

Classes of Transactions-
  Classification
  Completeness
  Cutoff
  Accuracy
  Occurance

Presentation & Disc-
  Completeness
  Classification & Understad
  Accuracy & valuation
  Occurance, rights & obligations

Acct Balances (Performance)-
  Valuation & allocation
  Rights & obligations
  Existence
 Completeness

Question 20

SSARS Review

Answer 20

Independence
Limit assurance
Attest

Know industry
No IC
Inquiries
Rep letter
Analytics

Question 21

SSARS Review Report

Answer 21

Title & Address
Intro
Mgmt Reps
Accts Reps
Results
Sig & date

Question 22

SSARS Compilation

Answer 22

No assurance
No independence
Attest

Question 23

SSARS Compilation Report

Answer 23

1 paragraph- no audit
No procedures to support assumptions
No audit/opinion
Know industry

Question 24

SSARS Preparation

Answer 24

No assurance
No attest
No independence

Question 25

SSARS Preparation Report

Answer 25

Engagement letter
Mgmt & acct responsibility
No assurance

Question 26

SSAES

Answer 26

Examination- Reasonable assurance - opinion on subject

Attest Review- Limited assurance - Conclude if material modification, modified, withdrawn

Agreed Upon Procedures - describes procedures - Engagement let, limited distribution, No opinion

Question 27

CPA offer services that meet prof standards

Answer 27

Quality Control system