AUD 4.11 - Other Communications

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  1. Component auditors must be treated and meet the same obligations as _________________.
    Any other engagement employee

    • True / False: Component auditors do not need to meet the independence requirements.
    • False
    • Component auditors are treated as any other engagement employee and must meet the same standards
  2. The engagement partner is responsible to convey which information to the component auditor when starting the audit?
    • Ensure their team meets the same requirements (independence, professional competence) as any other employee
    • Explain how the group will use their work
    • Explain which FS are to be audited by the component
    • Provide guidelines as to the how the work is to be performed and the limits of the work
    • Provide materiality levels
  3. At the conclusion of the audit, or earlier if possible, the component auditor must provide
    • A report stating the component auditor’s compliance with the group engagement team’s requirements
    • Instances of noncompliance at the component that could give rise to a material misstatement of the group FS
    • Significant risks of material misstatement of the group FS due to fraud or error and the component auditor’s responses to such risks.
    • A list of corrected and uncorrected misstatements
    • Indicators of possible mgmt bias regarding estimates and the application of accting principles
    • Material weaknesses and significant deficiencies in internal control
  4. What are the circumstances in which the auditor would disclose noncompliance to parties other than management
    • In response to inquiries from an auditor to a predecessor auditor
    • In response to a court order
    • In compliance with audits of entities that receive federal financial assistance from a government agency
  5. What is the auditor’s opinion when noncompliance has a material effect on the FS and has not been adequately disclosed
    Modified or adverse due to noncompliance with GAAP
  6. What is the auditor’s opinion when the auditor is unable to obtain sufficient appropriate evidence of noncompliance
    Modified or disclaimer of opinion due to scope limitation of GAAS
  7. What is the auditor’s response should the client refuse to accept the auditor’s modified opinion
    Withdraw from the engagement
  8. True / False: The auditor shall not disclose any confidential client information without the specific consent of the client, except for certain special circumstances
  9. The auditor is a member of the AICPA and receives a subpoena regarding the client’s records. Is the auditor obligated to inform the client of the subpoena?
  10. Under what circumstances is the auditor allowed to disclose client confidential information without first obtaining management approval?
    • In response to a subpoena
    • As part of a quality review of the member’s professional practices
    • In response to any inquiry either made by the ethics division or the trial board of the AICPA, in response to an investigation by the CPA society, or under authority of state statutes.
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AUD 4.11 - Other Communications
2017-07-02 04:33:51
audit AUD

Becker Review 2017
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