Pass Key Flashcards
Auditor tests reasonableness of dividend income from investments by computing the amounts that should receved
From dividend record book produced by investment advisory services
Managements response to inquiry can be anyone except
Preparation of the summary of unadjusted differences
When Auditor tests a computerized accounting system what is true of test data approach
Test data processed by client’s comp programme under the auditor’s control
What is not Internal Control procedure designed to refuse billing errors
Reconsiling control totals for Sales invoices with AR sub ledger
What procedures perform during Compilation engagement?
Consider whether FS are free from obvious MM in application of accounting principles
Auditor searching for unrecorded AP would
Compare subsequent bank statements with the accounts payable listing
Auditor analyzez R&M account to obtain evidence in support to the audit assertion that
Expenditures for P&E havent been charged to expense
Audit program for examinations of retained earnings include
Authorization both cash and stock dividends
Which of the following activities accountant is NOT responsible for in review engagement perform in accordance with SSARS?
Developing understanding of internal control
Which is NOT the difference between FS audit and audit of IC for non issuer?
In FS audit communication of defficency should be made by report realise day, audit if IC within 60 days. Correct is vs vsa
Overtime hours comparing to overtime he prior year. What is the name of the test?
Reasonableness test
Embedded module not often used by auditor. Why?
A is required to be involved in system design of application
Comfort letters send to
Underwriters and securities (negative assurance on fin info)
Which limitation on response from attorney may result in qualified opinion?
Attorney’s refusal to respond when attorney has give subst attention to the matter
To obtain understanding of entities IC on account balances Auditor should
Review entities description of Control over the inventory
What is improper segregation of duties over purchase transactions
Purchasing department prepares prenumered requisition s and obtain all approvals (function of requisition department)
Auditor testing IC of obtaining credit vapprovals before shipping goods. Which management assertion is tested?
Valuation and allocation (AR will be collected)
Company management provides auditor with info regarding claims, litigation … Which is the auditor s primary mean of corraborating management info?
Inquiries of company outside consuel
Group considered sub group for board of directors to fulfil it’s oversight responsibilities
Audit committee
Which is true about CPA code of professional condact
It applies to compilations and reviews of the FS of nonissuers
If performing sub test of cash disbursement auditor was told original invoice was misplaced what should he do?
Reevaluate risk of fraud and design alternate tests for related transactions
What set of information does usually auditor confirm in one form
Cash in bank and collateral for loans
What set of information does usually auditor confirm in one form
Cash in bank and collateral for loans
When Auditing cash balance in the end of the year auditor uses bank confirmations and test bank recs auditor testing which assertion
Completeness, valuation and allowance
Which is the reason that properly designed internal control may fail to perform fraud detection
Inadequate segregation of duties may allow one person both to perpetrate and conceal fraud activities
Which is the reason that properly designed internal control may fail to perform fraud detection
Inadequate segregation of duties may allow one person both to perpetrate and conceal fraud activities
Report on FS on cash receipts and disbursement basis should include all except
The cash receipt and disbursement basis is not a comprehensive basis of accounting
Which auditor will Least like to consider with respect to fair values
The effect on fair value measurement and disclosures available subsequent to audit
According to AICPA SSAR public accounting firm should establish quality control policies to provide assurance about matter relating on agreed upon procedure engagement
A practitioner is independent from the client and other parties
Which of the following would make auditor to consider MM in FS
The results of analytical procedure disclosed unexpected differences
Which characteris distinguish computer processing from manual processing
Computer processing virtually eliminate computation errord
Presumptively mandatory requirements
Should
Control deficiency is a material weakness when magnitude of misstatement
Likelihood is reasonable and Magnitude is Material
