Pass key 3 Flashcards
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of theissuer
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of theissuer
Auditor evaluating whether the nature of transactions and balances have been disclosed clearly in the financial statements is related to which assertion?
Classification and understandability
Auditor evaluating whether the nature of transactions and balances have been disclosed clearly in the financial statements is related to which assertion?
Classification and understandability
Review of interim fin info is presented in a registration statement. A prospectus about accountants involvement should include
Accountants review report is not a “part” of reg system of Sec Act 1933
If review report presented in Reg statement, prospectus should include statement
Accountant’s review report in not a part of reg statement of Sec Act 1933
Which statement would NOT normally be included to representation letter for a review of interim Fin info
We understand that review is consist principally of performing analytical procedures and inquiries
2 critical requirements to achieving audit efficiency and effectiveness with a computer are selecting
The appropriate audit tasks for the computer and appropriate audit software to perform them
When auditing presentation and disclosure of clients payroll reporting auditor reads footnotes and other info to determine if amount appropriate. Which assertion?
Valuation, allocation, accuracy
Which is correct regarding compliance with laws and regulations in audit under Yellow Book
In some circumstances auditor is required to report fraud and and illegal acts directly to external parties
The use of the ratio estimation sampling as compared to other sampling techniques is most effective then
The calculated audit amounts are approximately proportional to the client’s book amount
An auditor expressed a qualified opinion on prior year FS because of the luck of adequate disclosure. These FS are properly restated current year. The updated report on prior year FS should
Express an unmodified opinion on the restated FS of prior year
Which of the following disclaimers of liability in response to auditor’s request can auditor rely on
Info furnished as a matter of the cortesy
After performing risk assessment an auditor decided not to perform test of controls because
It would be inefficient to perform test of controls that would result in the reduction in planed substantive test
To ensure that the audit report for an issuer is prepared in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, the report must
Attest to and report on the internal control assessment made by the management of the issuer.
