Ethics, Prof Resp, & Principles

Question 1

In drafting an engagement letter for a new audit client, what is a required element?

Answer 1

1. auditor responsibilities
   2.management responsibilities
2. material misstatement may not be detected because of inherent limitations
3. GAAS
4. financial reporting framework
5. expected form and content

Question 2

How is an issuer defined in Section 2 of SOX?

Answer 2

Those registered under section 12 of SEA 1934, required to file reports under 15d of SEA 1934, or filed under SA of 1933 that is not withdrawn.

Question 3

When is an auditor of a nonissuer required to issue a written communication to mgmt and TCWG related to internal control matters noted in the financial stm audit?

Answer 3

When the auditor issues an opinion or disclaims an opinion

Question 4

What element should be included in an engagement letter to prepare financial statements under SSARS?

Answer 4

We will conduct our engagement in accordance with SSARS.

Question 5

Audit documentation should be complete by PCAOB standards

Answer 5

no later than 45 days following the report release date

Question 6

Under SASs an auditor should retain documentation

Answer 6

5 years from report release date

Question 7

Which of the following most accurately defines an attest engagement under the AICPA Code of Professional Conduct?

Answer 7

Any engagement that requires independence

Question 8

What auditing standards and ethics and independence rules is used by the PCAOB?

Answer 8

has adopted its own rules

Question 9

Required to be included in Form AP, Auditor Reporting of Certain Audit Participants

Answer 9

the name of the engagement partner, the name location and extenet of participation of each other accounting firm participating in the audit whose work constituted at least 5% of total audit hours, and the # and aggregate extent of participation of all other accounting firms participating

Question 10

requirement of a review in accordance with SSARS

Answer 10

Perform inquiries and analytical procedures

Question 11

SSAE

Answer 11

Standards for Attestation Engagements-assertion-based examination, direct examination or review, agreed-upon procedures

Question 12

SSARS

Answer 12

Statements on Standards for Accounting and Review Services-compilation or review

Question 13

SAS

Answer 13

Statements on Auditing Standards-generally accepted auditing standards that an auditor is expected to follow

Question 14

SSCS

Answer 14

Standards for Consulting Services-consultation, advisory services, implementation, transaction, support, and product services

Question 15

Regulation D

Answer 15

Exempts certain sales of securities from registering with the SEC under the Securities Act of 1933