Overview

Question 1

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

Answer 1

Attest engagement

Question 2

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

Answer 2

Examination

Question 3

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

Answer 3

Review

Question 4

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

Answer 4

Agreed-upon procedures

Question 5

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

Answer 5

Compilation

Question 6

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

Answer 6

Tests of controls

Question 7

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

Answer 7

Substantive procedures

Question 8

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

Answer 8

Substantive analytical procedures

Question 9

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

Answer 9

Test of details

Question 10

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

Answer 10

“unmodified”

Question 11

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

Answer 11

Statements on Auditing Standards (SAS)

Question 12

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

Answer 12

Unconditional requirement

Question 13

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

Answer 13

Presumptively mandatory requirement

Question 14

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

Answer 14

Statements on Standars for Attestation Engagements (SSAEs)

Question 15

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

Answer 15

Statements on Standards for Accounting and Review Services (SSARSs)

Question 16

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

Answer 16

Satements on Quality Control Standards (SQCS)

Question 17

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

Answer 17

Auditing Standards Board–part of AICPA

Question 18

Quality control standards related to the conduct of individual audits

Answer 18

GAAS (Generally Accepted Auditing Standards)

Question 19

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

Answer 19

Quality Control Standards

Question 20

Auditing standards used in the audit of issuer companies

Answer 20

PCAOB auditing standards

Question 21

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

Answer 21

Inverse relationship

Question 22

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

Answer 22

Standards on Reporting

Question 23

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

Answer 23

Unaudited

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

Question 24

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

Answer 24

Other information

Question 25

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

Answer 25

Supplementary information

Question 26

Issuer of the Government Auditing Standards (GAS) or GAGAS

Answer 26

Comptroller General of the United States, General Accounting Office