Review Final

Question 1

In an integrated audit of non-governmental entity, the discovery of deficiencies by IA require communication to TCWG an mgmt by what date

Answer 1

By the report release date

Question 2

When performing report on ICFR - in what circumstance is the auditor require to obtain sufficient appropriate evidence as to whether __ exists?

Answer 2

Material weakness ONLY

Question 3

What types of risk relate to Efficiency of the audit?

Answer 3

Risk of incorrect rejection and risk of assessing control risk too high

Question 4

What is risk of incorrect rejection?

Answer 4

Auditor incorrectly rejects an account balance as not being fairly presented when it is fairly presented –> lead to more audit work and would impact efficiency

Question 5

What is the risk of assessing control risk too high

Answer 5

Auditor would perform more substantive tests when less substantive tested would have been warranted. –> impact efficiency

Question 6

What is the risk of incorrect acceptance?

Answer 6

Relates to the effectiveness–> balance of account is incorrectly accepted as fairly presented when in fact it is not.

Question 7

If an audit firm performs more than 100 audits per year of a publicly traded companies, how often does the firm get inspected by the AICPA and PCAOB?

Answer 7

AICPA - selection basis, PCAOB - annually

Question 8

What opinion is given when mgmt fails to provide reasonable justification for a change in accounting principle?

Answer 8

Qualified or adverse

Question 9

What type of prospective financial statements would be given to potential stockholders?

Answer 9

Forecast

Question 10

According to the SSAE standards - what type of prospective financial information can an accountant perform?

Answer 10

Examination or AUP on prospective financial information. NOT REVIEW

Question 11

According to the SEC, what is required to be accompanied by an auditors report?

Answer 11

form 10-k (annual report)

Question 12

According to a non-issuer, when should the issue of written communication of internal control be noted in the audit no later than.

Answer 12

60 days after the report release date

Question 13

SOX prohibits registered public accounting firms from providing what non-audit services?

Answer 13

1. internal audit outsourcing services

Question 14

Define a preparation engagement (3)

Answer 14

1. Non-attest service
2. does not require a determination of whether the accountant is independent
3. FS may be historic or prospective