CPA Audit Review module 2-2

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Joens1313
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294749
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CPA Audit Review module 2-2
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2015-02-03 13:24:39
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CPA Audit Review module
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CPA Audit Review module 2-2
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  1. Audit Planning situation:

    Noncompliance with a material effect on financial statements not properly disclosed.

    What is the Audit Report Effect?
    Audit Report Effect

    Departure from GAAP - qualified or adverse opinion.
  2. Audit Planning situation:

    Auditor is precluded by management or those charged with governance from obtaining sufficient appropriate evidence on whether noncompliance may have a material effect on the financial statements.

    What is the Audit Report Effect?
    Audit Report Effect

    Scope limitation - qualified opinion or disclaimer of an opinion.
  3. Audit Planning situation:

    Auditor unable to determine whether noncompliance has occurred due to limitations imposed by the circumstances

    What is the Audit Report Effect?
    Audit Report Effect

    Scope limitation - qualified opinion or disclaimer of an opinion.
  4. what should the successors inquires of the predecessor be?

    1. -----------------------------
    2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    3. communications to audit committee regarding fraud illegal acts and internal control related matters
    4. Predecessors understanding of the reasons for the change in auditors
    • 1. information bearing on integrity of management
    • 2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    • 3. communications to audit committee regarding fraud illegal acts and internal control related matters
    • 4. Predecessors understanding of the reasons for the change in auditors
  5. what should the successors inquires of the predecessor be?

    1. information bearing on integrity of management
    2. -------------------------------
    3. communications to audit committee regarding fraud illegal acts and internal control related matters
    4. Predecessors understanding of the reasons for the change in auditors
  6. 1. information bearing on integrity of management
    • 2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    • 3. communications to audit committee regarding fraud illegal acts and internal control related matters
    • 4. Predecessors understanding of the reasons for the change in auditors
  7. what should the successors inquires of the predecessor be?
    1. information bearing on integrity of management
    2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    3. ---------------------------
    4. Predecessors understanding of the reasons for the change in auditors
    • 1. information bearing on integrity of management
    • 2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    • 3. communications to audit committee regarding fraud illegal acts and internal control related matters
    • 4. Predecessors understanding of the reasons for the change in auditors
  8. what should the successors inquires of the predecessor be?

    1. information bearing on integrity of management
    2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    3. communications to audit committee regarding fraud illegal acts and internal control related matters
    4. --------------------------------
    • 1. information bearing on integrity of management
    • 2. disagreements with management as to accounting principles auditing procedures or other similarly significant matters
    • 3. communications to audit committee regarding fraud illegal acts and internal control related matters
    • 4. Predecessors understanding of the reasons for the change in auditors
  9. Preliminary engagement activities are ------------------------------------------
    Preliminary engagement activities are activities that are preformed to determine whether continuance of the client relationship is appropriate and to evaluate the auditors compliance with ethical considerations
  10. ---------------------------------- are activities that are preformed to determine whether continuance of the client relationship is appropriate and to evaluate the auditors compliance with ethical considerations
    Preliminary engagement activities are activities that are preformed to determine whether continuance of the client relationship is appropriate and to evaluate the auditors compliance with ethical considerations
  11. What does the overall audit strategy involve?

    1. ----------------------------------

    2. determining the reporting objectives of the engagement

    3. considering important factors what will determine the focus of the audit teams efforts.
    1. determining the characteristics of the engagement that define its scope

    2. determining the reporting objectives of the engagement

    3. considering important factors what will determine the focus of the audit teams efforts.
  12. What does the overall audit strategy involve?

    1. determining the characteristics of the engagement that define its scope

    2. ---------------------------------------

    3. considering important factors what will determine the focus of the audit teams efforts.
    1. determining the characteristics of the engagement that define its scope

    2. determining the reporting objectives of the engagement

    3. considering important factors what will determine the focus of the audit teams efforts.
  13. What does the overall audit strategy involve?

    1. determining the characteristics of the engagement that define its scope

    2. determining the reporting objectives of the engagement

    3. ---------------------------------------
    1. determining the characteristics of the engagement that define its scope

    2. determining the reporting objectives of the engagement

    3. considering important factors what will determine the focus of the audit teams efforts.
  14. What does the overall audit strategy involve?

    1. -------------------------

    2. --------------------------

    3. ------------------------------
    1. determining the characteristics of the engagement that define its scope

    2. determining the reporting objectives of the engagement

    3. considering important factors what will determine the focus of the audit teams efforts.
  15. a written audit program should be developed and used to implement the audit plan
    a written --------------------- should be developed and used to implement the audit plan
  16. a written audit program should be developed and used to implement the --------------------
    a written audit program should be developed and used to implement the audit plan
  17. list the risk assessment procedures

    1. -----------------------------
    2. observation and inspection
    3. analytical procedures
    4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
    • 1. inquires of management and others within the entity
    • 2. observation and inspection
    • 3. analytical procedures
    • 4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
  18. list the risk assessment procedures1. inquires of management and others within the entity
    2. ----------------------------
    3. analytical procedures
    4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
    • 1. inquires of management and others within the entity
    • 2. observation and inspection
    • 3. analytical procedures
    • 4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
  19. list the risk assessment procedures
    1. inquires of management and others within the entity
    2. observation and inspection
    3. ----------------------------------
    4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
    • 1. inquires of management and others within the entity
    • 2. observation and inspection
    • 3. analytical procedures
    • 4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
  20. list the risk assessment procedures
    1. inquires of management and others within the entity
    2. observation and inspection
    3. analytical procedures
    4. ------------------------------------------
    • 1. inquires of management and others within the entity
    • 2. observation and inspection
    • 3. analytical procedures
    • 4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
  21. list the risk assessment procedures

    1. -------------------------------
    2. ---------------------------------
    3. ---------------------------------
    4. -------------------------------------
    • 1. inquires of management and others within the entity
    • 2. observation and inspection
    • 3. analytical procedures
    • 4. other procedures, such as inquires of others outside the entity, and reviewing information from external sources such as analyst, banks, etc.
  22. ------------------------------ are evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data.
    analytical procedures are evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data.
  23. analytical procedures are -----------------------.
    analytical procedures are evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data.
  24. ------------------------- are representations by management explicit or otherwise that are embodied in the financial statements as used by the auditor to consider the different types of potential misstatements that may occur.
    assertions are representations by management explicit or otherwise that are embodied in the financial statements as used by the auditor to consider the different types of potential misstatements that may occur.
  25. assertions are --------------------------------.
    assertions are representations by management explicit or otherwise that are embodied in the financial statements as used by the auditor to consider the different types of potential misstatements that may occur.
  26. An ---------------------- is a description of the nature, timing, and extent of the audit procedures to be performed, it is part of the audit program
    An audit plan is a description of the nature, timing, and extent of the audit procedures to be performed, it is part of the audit program
  27. An audit plan is a --------------------------------
    An audit plan is a description of the nature, timing, and extent of the audit procedures to be performed, it is part of the audit program
  28. an audit program is a ------------------------.
    an audit program is a detailed listing of the specific audit procedures to be performed in the course of an audit engagement.
  29. an -------------------- is a detailed listing of the specific audit procedures to be performed in the course of an audit engagement.
    an audit program is a detailed listing of the specific audit procedures to be performed in the course of an audit engagement.
  30. Audit risk is the ------------------------------.
    Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
  31. ----------------- is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
    Audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
  32. control risk is the -------------------------------------.
    control risk is the risk that a misstatement that could occur in an assertion about a class of transaction, account balance, or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be detected or corrected on a timely basis by the entity's internal control.
  33. -------------------- is the risk that a misstatement that could occur in an assertion about a class of transaction, account balance, or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be detected or corrected on a timely basis by the entity's internal control.
    control risk is the risk that a misstatement that could occur in an assertion about a class of transaction, account balance, or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be detected or corrected on a timely basis by the entity's internal control.
  34. what is audit risk a function of?
    material misstatement and detection risk.
  35. detection risk is the ----------------------------------.
    detection risk is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material either individually or when aggregated with other misstatements.
  36. ----------------------- is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material either individually or when aggregated with other misstatements.
    detection risk is the risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material either individually or when aggregated with other misstatements.
  37. inherent risk is the ---------------------------------------------------------
    inherent risk is the risk that the susceptibility of an assentation about a class of transaction, account balance, or disclosure to a misstatement that could be material either individually or when aggregated with other misstatements, before consideration of any related controls
  38. ------------------ is the risk that the susceptibility of an assentation about a class of transaction, account balance, or disclosure to a misstatement that could be material either individually or when aggregated with other misstatements, before consideration of any related controls
    inherent risk is the risk that the susceptibility of an assentation about a class of transaction, account balance, or disclosure to a misstatement that could be material either individually or when aggregated with other misstatements, before consideration of any related controls
  39. substantive procedures are -----------------------------------------------
    substantive procedures are audit procedures that are designed to detect material misstatements at the assertion level
  40. -------------------------------- are audit procedures that are designed to detect material misstatements at the assertion level
    substantive procedures are audit procedures that are designed to detect material misstatements at the assertion level
  41. What are substantive procedures?

    1. tests of details
    2. substantive analytical procedures
    • 1. ------------------------
    • 2. ------------------------
  42. What are substantive procedures?

    1. tests of details
    2. substantive analytical procedures
    • 1. ------------------------
    • 2. substantive analytical procedures
  43. What are substantive procedures?

    1. tests of details
    2. substantive analytical procedures
    • 1. tests of details
    • 2. --------------------------

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