Study PPT - 2

Question 1

Leadership responsibilities for quality within the firm (“tone at the top”)

-Balanced performance evaluation and compensation

-Develop and communicate quality control policies and procedures

Relevant Ethical Requirements
Independence, integrity, objectivity

Human Resources/Personnel management

Acceptance and continuance of clients

Engagement performance
Monitoring

Answer 1

The Quality Control Standard elements

Question 2

Except for one (limited) item, the financial statements present fairly ….

Answer 2

Qualified Audit Report

Question 3

The financial statements do not present fairly ….

Answer 3

Adverse Audit Report

Question 3

number of transactions examined

Answer 3

Sufficient relates to quantity-

Question 4

The financial statements present fairly the financial condition and operations of the company in conformity with U.S. GAAP.

Answer 4

Unqualified (PCAOB), Unmodified(ASB):

Question 5

Appropriate relates to quality (2 elements?)

Answer 5

(relevance, reliability)

Question 6

year end testing

Answer 6

High Risk

Question 6

The 3 Elements of DR (Detection Risk)?

Answer 6

Nature, Timing, and Extent

Question 7

interim testing

Answer 7

Low Risk

Question 8

based of that account how much risk is within it

Answer 8

Inherent Risk

Question 9

What is Risk of Material Misstatements composed of (2 elements)

Answer 9

RMM compromised of inherent risk and control risk