Mod 1-6 Quiz Flashcards
Section 402 of SOX Title “Enhanced Conflict of Interest Provisions” dictates that…
It is unlawful for any issuer to extend or maintain credit in the form
Of a personal loan to or for any director or officer
To determine whether a particular assertion is relevant to a significant account balance or disclosure the auditor should evaluate…3
1 the nature of the assertion
2 the volume of transactions or data related to the assertion and
3 nature and complexity of systems (info technology), the entity processes and controls info supporting the assertion
When an auditor is asked to report on the fair presentation of financial statements prepared in conformity with a regulatory basis of accounting, the auditor is required to…2
1 Issue a standard report modified for the departures from GAAP
2 an additional paragraph is added to this report which expresses
Auditor’s opinion on if FS are presented in conformity with
Prescribed basis of accounting
Audit procedures least likely to be performed before the balance sheet date would be the procedure that is attempting to…
Verify dollar value of an asset or liability
An auditor would least likely perform…
A confirmation of accounts payable before the balance sheet date
The auditor’s engagement letter specifies…4
1 services auditor will perform
2 state any assistance or restrictions on the audit
3 informs client auditor can’t guarantee all acts of fraud will be discovered
4 management is responsible for maintaining effective internal
Control
An auditor’s engagement letter would likely include management’s…
Acknowledgement of its responsibility for maintaining effective
Internal control
When the prior period financial statements are presented in comparative format and the current year accountant has not compiled or reviewed those financial statements, either…2
1 the predecessor may reissue his report or
2 successor accountant should make reference to predecessor’s
Report in his report on current period FS
If a predecessor accountant reissues his or her compilation or review report, the predecessor should…3
1 read the current year’s FS and the successor’s report
2 compare prior period FS with those previously issued and those
Of current period
3 obtain letter from the successor accountant pertaining to
Knowledge of any matters having an effect on prior year’s FS
Before reissuing a compilation report on the financial statements of a nonissuer for the prior year, the predecessor accountant is required to…
Compare the prior year’s financial statements with those of the
Current year
ARSCs
Accounting and Review Services Committee
Accounting and Review Services Committee (ARSCs) issues the…
Statements on Standards of Accounting and Review Services
SSARS
SSARS govern the…
Performance of compilation and review engagements
SQCSs
2) What do they do?
Statements of Quality Control Standards
2) Establish standards and provide guidance on a firm’s system
Of quality control
AICPA members who perform compilation and review services are governed by…3
1 AICPA
2 SSARS
3 Statements of Quality Control Standards (SQCSs)
