Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
Who are those charged with governance?
|
Person(s) charged with overseeing strategic direction of entity as well as overseeing the financial reporting process. ex Board of Directors, audit committee
|
|
|
Who is considered management?
|
Those responsible for the financial statements, as well as those who implement policies and procedures to pursue the achievement of objectives
|
|
|
What MUST the auditor communicate to the governance body?
|
All matters relevant to the FS audit that are significant and relevant.
|
|
|
What 5 things SHOULD the auditor communicate to the governance body?
|
1) The purpose of communications
2) People on the audit team and on the governance body that will communicate about certain matters 3) Mutual communication understanding 4) Process for taking action on matters auditor reports 5) Process for taking action on matters by those charged with governance |
|
|
How often and in what form should the communication take place?
|
The communication should take place in writing on a timely basis.
|
|
|
What 3 matters should the auditor communicate with those charged with governance?
|
1) Auditor's reponsibilities under GAAS
2) Overview of planned scope and timing 3) Significant findings from the audit |
|
|
What "should" and "may" the auditor communicate in relation to his/her responsibilities?
|
should - auditor is responsible for forming opinion on fairness of FS and management/governing body still responsible
may - auditor will audit in accordance with GAAS to obtain reasonable, not absolute, assurance, and can include testing the effectiveness of internal controls |
|
|
What "should" and "may" the auditor communicate about the scope and timing of the audit?
|
should - overview of scope and timing
may - proposals for significant risks, approach to IC, concept of materiality, use of internal audit |
|
|
What "should" the auditor communicate about the significant findings?
|
should - auditor's view on qualititative aspects of the FS, difficulties encountered, uncorrected misstatements, disagreements with management, corrected misstatement
|
|
|
What 2 things should the auditor convey about his/her opinion on the entity's accounting principles?
|
1) Matter of consistency as well as clarity and completeness
2) Items that have an impact on representation, verifiability, consistency, and neutrality of the FS |
