Review Notes for understanding

Question 1

The Audit Process

Answer 1

1. Engagement Acceptance
2. Assess Risk and Plan Response
3. Perform Procedures and obtain evidence
4. Form Conclusions
5. Reporting

Question 2

General Audit Principles

Answer 2

1. Overall objectives
2. Documentation
3. Communication
4. Quality control audit firm

Question 3

Compilation engagement

Answer 3

Accountant should compile FS and consider whether they are appropriate in form and free from obvious material errors

Question 4

Review report

Answer 4

Limited assurance that no material modification to FS are required for conformity with GAAP