Must knows

Question 1

what are the excpetions when you can release confidential client info?

Answer 1

subpoena or summons
quality review/peer review
inquiry made by ethics division of AICPA trial board
your defenswe team when being sued

Question 2

WHAT REPORT TYPES ARE ALLOWED FOR EACH OF THE SIX MAJOR ATTESTATION ENGAGEMENT TYPES?

Answer 2

AGREED UPON PROCEDES = A
PROSPECTIVE FS = ECA  
PRO FORMA FS = ER
MD&A = ER
I/C = EA
COMPLIANCE = EA

Question 3

principles under IFAC code of ethics

Answer 3

INTEGRITY

OBJECTIVITY

PROFESSIONAL COMPETENCE AND DUE CARE

CONFIDENTIALITY

PROFESSIONAL BEHAVIOR

Question 4

Do not take responsibility of component’s work with for an unmofidified opinion on the sub. Basically divide responsibility

Answer 4

“changes only AR pg and opinion pg

A division of responsibility affects the Auditor’s Responsibility Paragraph and the Opinion Paragraph, but does not require the inclusion of a Basis for Opinion Paragraph.”

Question 5

Part of understanding of clients business in a compilation engagement = STAFF stands for what?

Answer 5

Staff qualifications
Transaction types and frequency
Accounting basis used to prepare the FS
Form of the accounting records
FS form and content

Question 6

One of the greatest differences between GAAP and IFRS is that IFRS forces companies to use the first in first out (FIFO) form of accounting for their inventory. On the other hand, GAAP will allow a company to choose whether or not they want to use FIFO or the last in first out (LIFO) method. (Again, FIFO is allowed under GAAP methods, however, this article is also good for an understanding the difference between two US companies, one using LIFO and the other using FIFO). There are associated benefits and also risks by choosing one of the two methods, but it is important to actually see how the same company can be made to look otherwise better or worse just by which methods they use

Answer 6

GAAP

  Inventories are valued at cost or market, whichever is lower.

Question 7

A review of the interim financial information of a publicly held company is conducted in accordance with ________ standards.

Answer 7

A review of the interim financial information of a publicly held company is conducted in accordance with PCAOB standards.

AND JUST FYI,

A review of quarterly financial data included in financial statements of a nonissuer is performed under Statements on Auditing Standards, not under PCAOB standards.

Question 8

GAAS Standards = General

Answer 8

TIP =

Training and proficiency
Independence
Due professional care

Question 9

GAAS Standards = Fieldwork

Answer 9

PIE =

Planning and supervision
IC = understanding of ent including IC
E = SAAE (sufficient competent evidential matter)

Question 10

GAAS Standards = Reporting

Answer 10

CDOG =

Consistency = any instances where stds not applied
Disclosure = not any lacking disclosures
Opinion on compliance w/GAAP
GAAP = Whether FS per GAAP

Question 11

AICPA Code - General Standards

Answer 11

Professional Competence
Due Professional Care
Planning and Supervision
Sufficient Relevant Data