cpa audit ch1 review 3

Card Set Information

cpa audit ch1 review 3
2014-06-01 17:45:07
cpa audit ch1

cpa audit ch1 review 3
Show Answers:

  1. With regard to assignment of personnel to an engagement team, a CPA firm’s policies and procedures should include
    Consideration of the team’s understanding of similar engagements through training and participation.

    The quality control element of human resources requires assignment of appropriate personnel with the competence and capabilities to (1) perform engagements in accordance with professional standards and legal and regulatory requirements and (2) enable the firm to issue appropriate reports. The determination of team assignments and levels of supervision includes considering the team’s understanding of similar engagements through appropriate training and practical experience.
  2. The authoritative body designated to promulgate standards concerning an accountant’s association with unaudited financial statements of an entity that is not required to file financial statements with an agency regulating the issuance of the entity’s securities is the
    Accounting and Review Services Committee.

    The AICPA bylaws designate the Accounting and Review Services Committee as the senior technical committee authorized to issue pronouncements in connection with the unaudited financial statements or other unaudited financial information of a nonissuer.
  3. According to the AICPA, the CPA WebTrust seal may relate to the principles and criteria of
    WebTrust principles relate to security, privacy, availability, processing integrity, and confidentiality. Confidentiality criteria include providing for proper protection, e.g., encryption over transmission and encryption of storage of data. Availability criteria relate to assurance that electronic systems and data are available to meet the objectives of the entity and those depending on it. WebTrust is designed to help overcome the obstacles to mainstream consumer acceptance of electronic commerce.
  4. True or False ----An auditor’s responsibilities for audited financial statements are confined to the expression of the auditor’s opinion.
    True ----GAAS require the audit report to state whether the financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework