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Aud Exam > Study Review Part 2 Other Reports > Flashcards

Study Review Part 2 Other Reports Flashcards

0
Q

Cash basis tax basis regulatory basis contractual basis or a basis uses a definite set of logical reasonable criteria applied to the FS is a what type of framework

A

Special purpose framework

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1
Q

If statements on a comprehensive basis other than GAAP are not appropriately titled the auditor should

A

Disclose any reservations in an explanatory paragraph and qualify the opinion. Similar to GAAP departure

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2
Q

Regulatory basis financial statements intended for general use are the only special purpose financial statements that do not require an

A

Alert to readers in the emphasis of matter paragraph

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3
Q

Other matter paragraph should restrict the use of the report when it is used for

A

A contractual basis of accounting or a regulatory basis not intended for general use

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4
Q

A piecemeal opinion is when the auditor claims a adverse or disclaimer on the FS as a whole but trues to

A

Give a Unmodified opinion on one basic financial statement

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5
Q

When auditing a specific element of the FS that includes audited FS the audit must reference

A

The report on the audit FS and the type of opinion expressed

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6
Q

An auditor may express an opinion on a single financial statement if

A

He can obtain sufficient appropriate evidence as a reasonable basis of opinion

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7
Q

A report on controls in operation includes a description of he scope and nature of the procedures

A 
Identification of the party
Purpose of the engagement
Disclaimer on operating effectiveness
Opinion rendered
Inherent limitations
Identification of parties
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8
Q

An auditor cannot refer to a service auditors in their report because

A

The service auditor did not examine any portion of the financial statements under audit.

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9
Q

A type 1 service report is based on the service organizations

A

Suitability of design

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10
Q

A type 2 service report us based on an organizations

A

Suitability of the design and operating effectiveness of controls

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11
Q

A report on controls placed in operation should disclaim on

A

Operation effectiveness because the engagement does not include tests of control

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12
Q

Control objectives to be tested should cover a period of

A

6 months

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13
Q

Comfort letters are signed by the audit to pride what type of assurance

A

Negative assurance regarding the performance of limited procedures

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14
Q

Comfort letters give what type of assurances

A

Positive expression of opinion on audited FS and schedules comply to form with requ of the Act and SEC

Negative assurances on unaudited inf material modifications and changes to capital stock and long term debt

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15
Q

Comfort letters are usually dated

A

Shortly before the effective date of registration

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16
Q

When a entity receives govt financial assistance the auditor should assess if management

A

Has identified laws and regulations that have a direct material affect on the financial statements

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17
Q

When a performance audit is being conducted under govt audit standards the standards do not require a

A

Concurrent opinion on the FS taken as a whole

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18
Q

A subrecipient under give standards is a pass through entity that

A

Expends awards received from another entity to carry out a program

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19
Q

Materiality is considered for every federal program under

A

Govt auditing standards

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20
Q

When reporting on give compliance with laws and regulations the auditor should report only

A

Material instances of fraud and illegal acts discovered

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21
Q

A written report on the internal control structure is conducted for

A

Government auditing standards

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22
Q

Quality control review must be performed every for govt standards

A

3 years

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23
Q

In a compliance report the auditor should state that

A

The compliance is the responsibility of management

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24
Q

In a compliance audit the audit gives positive and negative assurance to

A

Items tested and not tested

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25
Q

In govt compliance auditing the auditor identifies subsequent events by performing procedures up to the

A

Date of the auditors report

26
Q

When preparing a working trial balance assisting in adjusting the books of account conducting on acct data preparing tax returns providing bookkeeping and data processing services and processing financial data to clients what standards does not apply

A

The statements on standards of accounting and review services

27
Q

Before reissuing a compilation report on the FS the auditor should

A

Compare the prior year to the current year
Read the FS of the current year
Obtain a letter from the successor accountant

28
Q

Compilation of FS lacking all disclosures may be conducted if

A

The omission is clearly identifies in the report

Not intended to mislead those who might reasonably be expected to use the complied statements

29
Q

In a compilation an auditor must obtain an understanding of the entity through

A

The nature of business transaction
The firm of acct records
Acct basis adopted for the FS
The firm and content of the FS

30
Q

The compilation report states that a compilation is limited to presenting in the firm of financial statements and

A

Info that us the representation of management

31
Q

In compiling a financial projection the client should be aware that

A

The engagement does not include an evaluation of the support for the assumptions underlying the projection

32
Q

What standards does not required an auditor to print a compilation report on the accountants letterhead or manually sign the report by the

A

sSARS

33
Q

Reproducing FS is not what type of engagement

A

Compilation

34
Q

In a review engagement if there is a material GAAP departure the auditor should

A

Disclose the departure from GAAP in a separate paragraph

35
Q

A review report would use the statement that the auditor is

A

Not aware of any material modifications that should be made to the FS

36
Q

In a review an auditor only modifies the report when

A

The auditor becomes aware of departures from GAAP that we’re not corrected.

37
Q

Procedures for recording classifying and summarizing transactions and accumulating info are normally performed in a

A

Review engagement

38
Q

A review is conducted by performing selected limited procedures intended to identify areas where the FS

A

May not be in accordance with GAAP

39
Q

Reviews on financial projections (prospective FS that present an entity’s financial position given hypothetical assumptions) are

A

Not allowed

40
Q

When the FS uses a special purpose framework the auditor should

A

State the fact and refer to the notes to the FS

41
Q

Unaudited personal FS omitting certain disclosures required by GAAp may be obtained if

A

The fluent agrees the FS are used solely for personal goals and not to obtain credit

42
Q

A CPA May not report on comparative FS when FS that both

A

Omit all disclosures and include necessary disclosures are included

43
Q

Per the SEC filing requirements the presentation of in auditing FS with audited FS should be

A

Marked as unaudited. The auditor is not required to hold until unaudited or mention on the auditors report

44
Q

If the output is in the form of FS the auditor should

A

Report on them

45
Q

Attestation engagement is when a CPA is engaged to issue or does issue

A

An examination review or agreed upon procedure report on subject matter or assertion about the subject matter

46
Q

Attestation standards do not require an understanding of

A

Internal control

47
Q

Disclosure requirements for prospective financial statements (financial forecasts of financial projections) include

A

Summaries of significant assumptions and significant accounting policies

48
Q

Attestation engagements apply to attest agreed upon procedures engagements compilations and examinations of

A

Financial forecasts projections, and pro forma, compliance and internal control engagements

49
Q

A report listing the procedures performed and the findings is included in a

A

Agreed upon procedures engagement

50
Q

The compilation report on a projection should in glued a description of the special purpose for which the projection was prepared along with

A

A separate paragraph to restrict the use of the report to the specified parties

51
Q

A engagement rated to a projection must be restricted if

A

The third party is unable to ask about the presentation. Third parties should be in negotiating contracts

52
Q

If there are several significant assumptions that do not provide a reasonable basis for a forecast the
Auditor should issue an

A

Adverse opinion

53
Q

A compilation of a projection would include

A

A statement that the compilation is limited in scope
A disclaimer of responsibility to update the report
A caveat that the prospective results may not be achieved
A description of the limitations of the presentation usefulness

54
Q

A compilation report on a financial forecast should include a statement that

A

There will be differences between forecasted and actual results

55
Q

Forecast represent

A

The predicted FS outcome

56
Q

Projections represents

A

The expected financial statement outcome based on certain specified hypothetical assumptions

57
Q

A review of pro forma financial info include a reference to the

A

Financial statements from which the historical financial into is derived and a statement as to whether such statements were audited or reviewed.
Modifications of the historical FS

58
Q

In pro forma statements the audit should express positive assurance on

A

Management assumptions reasonable basis for presenting significant effects
Adjustments reflect those assumptions
Pro forma column reflects the proper adjustments of the FS

59
Q

Pro forma financial info is

A

The significant effects on historical financial info that might have been had a transaction occurred at an earlier date

60
Q

Examples of pro forma info are

A 
Business combination
Disposal of significant segment of business
Changes in capitalization
Issuance of securities
Application of proceeds
61
Q

What are the four conditions that must be met for an auditor to examine internal control in an integrated audit.

A

Management must accept responsibility for the effectiveness of internal control
Management must evaluate the effectiveness of the entity’s internal control using suitable and available criteria
Management must support its assertion about the effectiveness of internal control with sufficient appropriate evidence
Management must provide it’s written assertion about the effectiveness of the entity’s internal control

62
Q

Professional standards prohibit a review on an engagement in connection with reporting on

A

Internal control

63
Q

Managements representation of internal control in an integrated audit can only b presented in

A

A separate report that would accompany brown report

Aud Exam (3 decks)

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