Who's Who (Players/Entities) Flashcards
1
Q
Who are the three entities under GAAP? (the Private Sector)
A
FASB
IASB
GASB
2
Q
What standards does the FASB use
A
ASC
3
Q
What standards does the IASB (previously IASC) use
A
IFRS (previously IAS)
4
Q
What are the 7 players under AICPA?
A
SAS (non-issuers) SSAE SSARS ET QC PFP CS
5
Q
What standards does SAS use
A
AU
6
Q
What standards does SSAE use
A
AT
7
Q
What standards does SSARS use
A
AR
8
Q
What does SAS stand for
A
Statements of Auditing Standards
9
Q
What does SSAE stand for
A
Statements on Standards for Attestation Engagements
10
Q
What does SSARS stand for
A
Statements on Standards for Accounting and Review Services (Compilations and Reviews)
11
Q
What does ET stand for
A
Ethics
12
Q
What does QC stand for
A
Quality Control
13
Q
What does PFP stand for
A
Personal Financial Planning
14
Q
What does CS stand for
A
Consulting Standards
15
Q
What are the 4 US Government entities?
A
SEC
SOX (PCAOB) - issuers
GAO
DOL
16
Q
What does GAO stand for?
A
Governmental Accountability Office
17
Q
What does PCAOB stand for?
A
Public Accounting Oversight Board
18
Q
What does DOL stand for?
A
Department of Labor
19
Q
What are the 2 entities under IFAC? (International Federation of Accountants)
A
IAASB (ISA)
IESBA
20
Q
What does IAASB stand for?
A
International Auditing and Assurance Standards Board
21
Q
What does ISA stand for?
A
International Standards on Auditing
22
Q
What does IESBA stand for?
A
International Ethics Standards Board for Accountants
23
Q
T/F
The Code of Professional Conduct under AICPA is applicable to all AICPA members, even if they are not in public practice
A
T
24
Q
IFAC issues the International Ethics Standards Board for Accountants (IESBA). What are the three parts to this code?
A
Part A: Framework applies to all professional accountants
Part B: Applies to professional accountants in public practice
Part C: Applies to professional accountants in business
25
Discuss GAAS. What does it stand for? How does it relate to SAS, ASB, AICPA, and PCAOB?
Generally Accepted Auditing Standards
auditor is responsible for the performance of a properly planned and executed audit
10 GAAS = criteria for an audit. Compliance with GAAS is mandatory on all audit engagements
AICPA's ASB (auditing standards board) issues SAS (Statements on Auditing Standards) which are interpretations of GAAS. These SASs are outlined in Section AU.
SAS appy to all audits of nonissuers (nonpublic entities) and to the audits of issuers (public companies) to the extent not superseded by PCAOB Auditing Standards
26
Discuss GAGAS. What does it stand for?
Generally Accepted Government Auditing Standards
Audits of government organizations, programs, activities, and of entities that receive government funds should be conducted in accordance with GAGAS
27
Discuss the PCAOB. What does it stand for?
Public Company Accounting Oversight Board
established by SOX in 2002
establishes auditing and related professional practice standards to be used in the preparation and issuance of audit reports for "issuers"
"Issuers" consist of entities subject to the rules of the SEC (primarily public companies)
Comprised of 5 full time members:
a. 2 members must be (or have been) CPAs, and the other 3 must not be (or have been) CPAs
b. a CPA can only act as the Chair of the Board if he/she has not practiced as a CPA for the past 5 years
c. no members of the Board can receive payments from a public accounting firm (other than fixed continuing payments, such as retirement payments)
Public accounting firms must register with the PCAOB in order to audit a public company. registered firms are subject to board inspection, disciplinary proceedings, and sanctions
PCAOB Auditing Standards (AS)
PCAOB adopted ASB standards but reviews each standard to evaluate whether it should be modified, repealed, replaced, or permanently adopted
PCAOB has issued several of its own AS which replace ASB standards for audits of issuers
Note: ASB retains the authority to set performance and reporting standards for audits of financial statements of nonissuers
28
Discuss IAASB. What does it stand for?
International Auditing and Assurance Standards Board (IAASB), a standard setting board of the International Federation of Accountants (IFAC)
establishes International Standards on Auditing (ISA)
ISAs don't override the local laws and regulations or national standards. over 100 countries are using or in the process of adopting ISAs into their national auditing standards or are using ISAs are the basis for preparing national auditing standards
US: ASB is working to converge its standards with the IAASB's standards
29
Discuss SSAE
issued by the AICPA
apply to attest engagements
outlined in Section AT of the AICPA Professional Standards
30
Discuss SSARS
Accounting and Review Services Committee was established by the AICPA - issues SSARS
establish standards for privately held companies not seeking audited statements
SSARS are applicable to unaudited F/S or unaudited financial information of a nonpublic entity
outlined in Section AR of the AICPA Professional Standards
31
_____ is the authoritative body designated to promulgate financial accounting standards
FASB
32
____ is not one of the bodies designated by the AICPA to promulgate technical standards.
GAO
33
___ is the authoritative body designated to promulgate statements on auditing standards
Auditing Standards Board
34
These are the measures of the quality of the auditor's performance
GAAS (Generally Accepted Auditing Standards)
35
The PCAOB is responsible for standards relating to:
A) Accounting
B) Attestation
C) Auditing
D) Quality Control
B, C, D
NOT responsible for standards relating to A
36
A PCAOB engagement that focuses on a selected quality control issue is referred to as a(n)
Inspection
37
____ establishes international auditing standards
International Federation of Accountants
38
T/F
International auditing standards do not require an audit of internal control
TRUE
39
T/F
International auditing standards do not allow reference to division of responsibilities in the audit report
TRUE
40
T/F
International auditing standards require obtaining an attorney's letter
FALSE
For international auditing standards, Obtaining an attorney's letter is only required if the auditors assess a risk of material misstatement
41
T/F
International auditing standards are based on a risk assessment approach
TRUE
42
What standards would you refer to when performing a review of a nonpublic company's annual financial statements?
SSARS
43
What standards would you refer to when deciding whether a contingent fee may be billed to a client?
ET
44
What standards would you refer to related to firm requirements of CPA firms that are enrolled in an AICPA-approved practice-monitoring system
Statements on Quality Control Standards (QC)
45
What standards would you refer to for an examination of a client's financial forecast
SSAE
46
What standards would you refer to relating to overall requirements when providing services for an advisory services engagement
Consulting Services (CS)
47
What standards would you refer to for the audit of a public company
PCAOB
48
What standards would you refer to for the performance of an interim review of the quarterly financial statements of a nonpublic audit client
AU-C
49
What standards would you refer to for reporting on client pro forma financial information
SSAE
50
What standards would you refer to on whether an investment of a CPA impairs her independence with respect to a client
ET
51
What standards would you refer to on performing a compilation of a nonpublic company's quarterly statements
SSARS
52
What guidance topic would you refer to for the following situation?
Possible Risk Factors related to misappropriation of assets
Fraud
53
What guidance topic would you refer to for the following situation?
The relationship between materiality used for planning versus evaluation purposes
Materiality
54
What guidance topic would you refer to for the following situation?
Client has transactions with the Corporation President's Brother
Related Parties
55
What guidance topic would you refer to for the following situation?
Comparing a client's unaudited results for the year with last year's audited results
Analytical Procedures
56
What guidance topic would you refer to for the following situation?
Auditing and reporting guidance on the possible need to reaudit previous year results due to the disbanding of the firm that performed last year's audit
Communications between Predecessor and Successor Auditors
57
What guidance topic would you refer to for the following situation?
Requirements relating to identifying violations of occupational safety and health regulations
Considerations of Laws and Regulations
58
What guidance topic would you refer to for the following situation?
The need to brainstorm among audit team members about how accounts could be intentionally misstated
Fraud
59
What guidance topic would you refer to for the following situation?
The importance of considering the possibility of overstated revenue through premature revenue recognition
Fraud
60
What Professional Standards addresses the following situation:
Nonpublic audit client is hoping to take the company public. He requests that in addition to your standard financial statement report you issue a report on internal control that he can make available to any individual or organization he desires. He would like to have two reports (like public companies do) - one for FSs and one for IC
AT
61
What Professional Standards addresses the following situation:
A nonpublic company has limitations of internal control. Professional Standards acknowledge that internal control has certain limitations that affect financial statement audits. Where are these limitations discussed?
AU-C
62
What Professional Standards addresses the following situation:
Your client, a nonpublic audit client, suggests to you that his previous auditor did not confirm A/R and you should not need to do so either
AU-C
63
T/F
Both the AIPCA and the SEC allow auditors to prepare financial statements
FALSE
The AICPA allows this
The SEC does not
64
T/F
Both the AIPCA and the SEC allow auditors to prepare source documents
FALSE
Neither the AICPA nor the SEC allow this
65
T/F
Both the AIPCA and the SEC allow auditors to record transactions
FALSE
Neither the AICPA nor the SEC allow this
