cpa audit review ch 1 review 2
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The audit work performed by each assistant should be reviewed to determine whether it was adequately performed and to evaluate whether the
Results are consistent with the conclusions to be presented in the auditor’s report.
According to AU-C 220, QC 10, and AS No. 10, a review considers whether, for example, (1) the work supports the conclusions and is properly documented, (2) the evidence is sufficient and appropriate to support the auditor’s report, and (3) the objectives of the procedures have been achieved.
Is Prior experience required to provide CPA ElderCare (PrimePlus) services?
No -- Prior experience is not required because ElderCare (PrimePlus) services are relatively new to the CPA market. Personal skills and knowledge of issues are fundamental to providing this service to the elderly.
A CPA in public practice is required to comply with the provisions of the Statements on Standards for Attestation Engagements (SSAEs) when
The SSAEs apply to attest engagements. An attestation engagement is one in which a practitioner is engaged to issue or does issue an examination, a review, or an agreed-upon procedures report on subject matter, or an assertion about the subject matter, that is the responsibility of another party. Litigation support services are transaction services, a category of consulting services. The Statement on Standards for Consulting Services applies.
Is the following statement true concerning an auditor’s responsibilities regarding financial statements?
An auditor may draft an entity’s financial statements based on information from management’s accounting system.
True ---- The independent auditor may make suggestions about the form or content of the financial statements or draft them, in whole or in part, based on information from management’s accounting system. However, the auditor’s responsibility for the financial statements (s)he has audited is confined to the expression of his/her opinion on them.
Within the context of quality control, the primary purpose of continuing professional education (CPE) and training activities is to provide a CPA firm with reasonable assurance that personnel within the firm have
The ability to fulfill assigned responsibilities and the qualifications for advancement.
According to QC 10, the firm should adopt policies and procedures to obtain reasonable assurance that personnel at all levels participate in general and industry-specific CPE and other professional development activities that enable them to fulfill responsibilities assigned and satisfy applicable CPE requirements of the AICPA and regulatory agencies. Furthermore, personnel chosen for advancement should “have the qualifications necessary for fulfillment of the responsibilities they will be called on to assume.”
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