GAAS and PSQM Flashcards
General Standards (TIP)
- qualities to have
Adequate Technical Training and Proficiency
Independence
Professional Care
It is the cornerstone of the profession.
Independence
Auditor can give opinion even if fees from prior year audit have not been paid. True or False?
False
Standards of Fieldwork (PIE)
Planning and Supervision
Understanding of Internal control, entity and its environment
Sufficient Appropriate Evidence
Standards of Reporting (GCDO)
- which are explicit? implicit?
In accordance with GAAP (explicit)
Consistent application of GAAP (implicit)
Adequate Disclosures (implicit)
Opinion regarding the financial statement (explicit)
Opinion for FS is taken as a whole.
This is the interpretation of GAAS. Mandatory to follow.
PSA
Scope / Application of PSQM 1
applies to AASC engagement standards (PSA, PSRE, PSAE, PSRS)
Components of SQM (PERGRAMI)
Performance
Ethical Requirements + Independence
Risk Assessment Process
Governance and Leadership
Resources
Acceptance & Continuance of Engagements
Monitoring and Remediation
Information and Communication
Who has responsibility for SQM? for operation of SQM?
- CEO
- partner
What is the objective in acceptance & continuance of engagements?
To check for
- Client’s Integrity
- Firm’s Competence
There’s a change in auditor. I am the new audtor. I will directly communicate with the predecessor auditor to ask him the reason why there’s a change in auditor. Is this correct?
No (should be with management’s consent)
PSQM 2 (EQCR)
- EQCR is required for __ of __ companies
audit, listed
EQCR is someone who is not a part of the engagement team. He will perform the review on or before the date of report.
Yes
