Unit 5 Flashcards
The top-down approach is an understanding the the overall risks of IC over financial reporting at the ______ level.
F/S
Significant deficiencies (do/do not) result in an adverse opinion of IC
Do NOT (only MM)
Significant deficiencies (should/shouldn’t) be reported to management, and (should/shouldn’t) be reported to the audit committee.
Should to Mgmt / Should NOT to AC (only MM)
Communication of deficiencies (does/doesn’t) require restrictive language
Does NOT
Review of Pro-Forma financial information should use a reference to what standards?
SSAE
SSAE (does/doesn’t) address advocation services for the client.
Does NOT
Compiling a clients financial projection based on a hypothetical course of action involves (SSAE/SARS).
SSAE
Agreed-upon procedures have (no/negative/positive/limited) assurance
No
Independence (is/isn’t) required for SSAE
Independence IS required
The practitioner’s report should refer to standards established by the (SSAE/SSARS/AICPA)
AICPA
A review of pro-forma financial information provides (no/negative/positive/limited) assurance.
Limited
If there is a legitimate reason for a change of engagement from an audit to any other procedure, a reference (should/shouldn’t) refer to the original engagement.
Should NOT
If there is a legitimate reason for a change of engagement from an audit to any other procedure, references can be made to procedure previously performed ONLY IF the engagement is going from an audit to _______
Agreed-Upon Procedures
Type 1 Report
Mgmt’s description of the IC system
Type 2 Report
Operating Effectiveness of IC + Type 1
