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Audit > Other Engagements > Flashcards

Other Engagements Flashcards

1
Q

Who is required to complete an audit over FS and operating effectiveness of IC?

A

Issuers

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2
Q

What are the three fraud risks?

A

Opportunity
Pressure
Rationalization

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3
Q

What is a top down approach used for?

A

Selecting controls to test

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4
Q

What is the top down approach?

A

FS Level - Accounts - Assertions

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5
Q

Entity level controls

A

Control environment, management override, company risk assessment, centralized processing

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6
Q

What kind of controls can you benchmark?

A

Automated

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7
Q

Audit of internal controls results in an opinion on internal control at a _______

A

point in time

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8
Q

Audit of internal controls results in an opinion on FS over ______

A

Period of time

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9
Q

When should control deficiencies be expressed in an integrated audit?

A

By report release date

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10
Q

When should control deficiencies be expressed in a financial statement audit?

A

60 days from report release date

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11
Q

What are the components of communication to management and TCWG over internal controls

A

Responsibility
Definitions of deficiencies
Restrict Use

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12
Q

Who and when should the following be communicated? (Nonissuer)
Control deficiency

A

Management
60 days after report release

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13
Q

Who and when should the following be communicated? (Nonissuer)
Significant deficiency

A

Management and TCWG
By report release

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14
Q

Who and when should the following be communicated? (Nonissuer)
Material weakness

A

Management and TCWG
By report release

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15
Q

Where is the reference to the opinion on internal control in a nonissuer report? (Separate)

A

Opinion paragraph

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16
Q

What paragraph concludes the opinion on internal controls in a nonissuer report? (Separate)

A

Inherent limitations

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17
Q

What kind of engagement is the following:
Examination

A

Attestation

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18
Q

What kind of engagement is the following:
AUP

A

Attestation

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19
Q

What kind of engagement is the following:
Review

A

Attestation

20
Q

What attest engagement can you NOT perform on Prospective FS

A

Review

21
Q

What attest engagement can you NOT perform on Compliance

A

Review

22
Q

What attest engagement can you perform a review on?

A

Pro forma and MD&A

23
Q

What rules do preparations, compilations, and reviews apply?

A

SSARS

24
Q

What rules to AUP, Prospective, Compliance, MD&A apply?

A

SSAE

25
Q

What do attest standards NOT reference

A

Historical FS or GAAP

26
Q

Attestation Risk

A

RMM * DR

27
Q

What does attestation risk not apply to?

A

AUP

28
Q

What kind of opinion does an examination provide?

A

Positive, high level of assurance

29
Q

How do you handle a scope restriction on a review?

A

Withdraw

30
Q

What are the components of an examination report?

A

Intro
Scope
Opinion

31
Q

What do you include in a report over the assertion for an examination?

A

We have examined management of XYZ company’s assertion

32
Q

What kind of opinion does a review have?

A

Limited assurance, conclusion

33
Q

What are the components of a review report?

A

Intro
Scope
Conclusion

34
Q

What kind of opinion does AUP have?

A

None, list of findings

35
Q

What are the conditions for AUP?

A

I AM SURE
Independence
Agreement
Measurability
Sufficient procedures
Use of report can be general or restricted
Responsibility is on client
Engagements must include a summary of significant assumptions

36
Q

Financial forecast

A

Expected financial results

37
Q

Financial projection

A

Hypothetical assumptions

38
Q

What prospective financial statement can be general use?

A

Forecast

39
Q

How can prospective financial statements be prepared?

A

preparation
compilation
examination
AUP

40
Q

What guidance does preparation of prospective FS use?

A

SSARS

41
Q

What guidance does compilation of prospective FS use?

A

SSARS

42
Q

Negative Assurance

A

Nothing came to the auditor’s attention that caused the auditor to believe an entity failed to comply

43
Q

SOC 1

A

evaluating impact that certain relevant controls at the service organization have on the FS of entity

44
Q

SOC 2

A

Give assurance to a broad range of users regarding the controls in place

45
Q

Type 1 report

A

Report on design and implementation of a service organization

46
Q

Type 2 report

A

Report on design, implementation, and operating effectiveness of a service organization’s controls

47
Q

Criteria for Compliance Examination

A

Risk assessment
design responses to risk assessment
obtain written representation
prepare report and documention

Audit (7 decks)

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