Overview Flashcards

1
Q

An engagment in which the CPA is engaged ot issue or does issue an examination, review, or an agreed-upon procedure report on subject matter or an assertion taht is the responsibility of another party

A

Attest engagement

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2
Q

A type of attestation engagement that involves historical financial statements and normally results ina positive opinion that provides reasonable assurance by selecting from all available evidence

A

Examination

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3
Q

An attestation engagement that is substantially less in scope than an audit and consists primarily of

  • the application of analytical procedures
  • making inquiries of managment
  • obtaining representations from management
  • -results in a report with limited (negative) assurance
A

Review

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4
Q

A type of attestation engagement that results in a report that describes the procedures performed and related findings–summary of findings

A

Agreed-upon procedures

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5
Q

A CPA service with the objective to presenting information that is the representation of management without expressing any assurance on the statements
CPA’s primary role in this type of service is to prepare hte financial statements so they must disclaim any opinion and give no assurance

A

Compilation

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6
Q

Tests performed to determine wehther key controls are properly designed and are operating effectively

A

Tests of controls

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7
Q

Procedures used to provide evidence as to whether actual account balances and disclosures are proper that can be derived from

  • analytical procedures
  • test of details
A

Substantive procedures

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8
Q

Substantive procedures used to obtain audit evidence about particular assertions related to account balances or classes of trnasactions–auditor gathers evidence about relationships amoung various accounting and nonaccounting data and compare to expectations

A

Substantive analytical procedures

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9
Q

Substantive procedures used to detect misstatements in the financial statements, specifically misstatements of relevant assertionsrelating to transactions, account balances, and disclosures

A

Test of details

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10
Q

The name for an unqualified report in the AICPA and internaional standards

A

“unmodified”

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11
Q

Auditing standards issued by hte Auditing Standards Board that are considred GAAS for the audits of nonissuers

A

Statements on Auditing Standards (SAS)

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12
Q

A SAS in whichthe auditor must comply with the requirement in all cases in which the circumstances exist–uses words must or required

A

Unconditional requirement

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13
Q

A SAS in which the auditor must comply, but in rare circumstances, may depart from such a requirement–uses “should”

A

Presumptively mandatory requirement

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14
Q

The applicable standards for attestation engagements on subject matter other tahn the financial statements

A

Statements on Standars for Attestation Engagements (SSAEs)

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15
Q

standards that provide the autoritative guidance on procedures and reporting of compilation and review engagements of nonissuer entity financial statements

A

Statements on Standards for Accounting and Review Services (SSARSs)

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16
Q

Standards that apply to the accounting and auditing practices (including all attest services) of all firms–used when evaluating a firm in a peer review

A

Satements on Quality Control Standards (SQCS)

17
Q

Authoritative body that issued the Statements on Auditing Standards (SAS) (AU)

A

Auditing Standards Board–part of AICPA

18
Q

Quality control standards related to the conduct of individual audits

A

GAAS (Generally Accepted Auditing Standards)

19
Q

Quality control standards that relate to the overall audit practice/firm

A

Quality Control Standards

20
Q

Auditing standards used in the audit of issuer companies

A

PCAOB auditing standards

21
Q

Type of relationship between audit risk and materiality at the individual account balance, class of transaction, or disclosure level

A

Inverse relationship

22
Q

The objective of these standards are to prevent misinterpretation fo the degree of responsibility assumed by the accountant when his/her name is associated with financial statements

A

Standards on Reporting

23
Q

The classification for statemetns that have not been audited–only applies to public companies because such statements would be considered “compiled, re iewed, or audited” under AICPA standards for nonissuers

A

Unaudited

  • -each page should say “unaudited”
  • -cannot express opinion (b/c not audited), but can make a disclaimer refering to a departure from GAAP
24
Q

financial and nonfinancial information (other than the financial statements and the auditor’s report thereon) that is included in a document containing audited financial statements and the auditor’s report htereon, excluding required supplementary information–auditor shoudl just read it

A

Other information

25
Q

Information outside the basic financial statements ( excluding required supplemetnry information) that is not considered necessary for the financial statements to be fairly presented in accordance withthe applicable finanical reporting framework

A

Supplementary information

26
Q

Issuer of the Government Auditing Standards (GAS) or GAGAS

A

Comptroller General of the United States, General Accounting Office