Self Made AUD Flashcard
Audit opinion enhances what?
Degree of confidence that intended users place on the F/S
US GAAS Applies to what type of company? Public or Non Public?
Non Public
Does US GAAS address auditor responsibilities over legislation/law?
No. It is the responsibility of the auditor to ensure compliance
An audit accordance with GAAS means what for management and those charged w/ governance?
That they acknowledge their responsibilities that are fundamental to the audit
the auditor’s responsibility to express an opinion is the ____ sentence in the ____ paragraph?
1st sentence in the auditor responsibility paragraph
What is the role of US GAAS?
To contain objectives/requirements/applications that are designed to support the auditor to obtain assurance
Interpretive publications consist of: (4 items)
Auditing interpretations of US GAAS
Exhibits to GAAS
AICPA Audit & Accounting Guides
AICPA Auditing Statements of Position
Can management be apart of those charged with governance?
Yes: two situations
- Executive members of a governance board
- Owner-manager
PresumptivelyMandatory Requirement word:
Should
Relevant Assertion
F/S Assertion that contains a possibility of a misstatement
Does RMM exist independent of the audit?
Yes
Is RMM the risk of the auditor or the entity?
Entity
US GAAS is developed and issued in the form of _____
SAS - Statements on Auditing Standards
When preparing and presenting unaudited F/S to 3rd parties, what standard oversees this?
SSARS - Statements on Standards for Accounting And Review Services
Are Audit Standards the same as Audit Procedures?
No
What do audit procedures do?
Meet requirements of GAAS and gather audit evidence
What do audit standards do?
Provide objectives that audit procedures attain
Do audit standards vary from engagement to engagement?
Hell no
Can the auditor apply an AU section before the specified effective date?
Yes
Can an auditor conduct an audit in both US GAAS and
PCAOB
International Auditing Standards (ISA)
Government Auditing Standards?
Auditing Standards of a specific jurisdiction or country?
Yes. May need to perform additional audit procedures to comply w/ other auditing standards
Are Interpretive Publications recommendations or requirements?
Recommendations
Who issues Interpretive Publications?
AICPA’s ASB (AUidtng Standards Board)
What type of standards are intrepretive publications
They’re not standards
Preparation and fair presentation of the F/S in accordance with Applicable Financial Reporting Framework encompasses:
Selecting appropriate accounting policies
making reasonable accounting estimates
