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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Purpose of independent auditor
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to determine whether or not the f/s under exam are presented fairly in accordance with GAAP, audit is result of GAAS.
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What Constitutes GAAP?
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Technical principles, methods and proc's, both written and unwritten.
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3 General Standards of GAAS?
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1. Sufficient Tech Traing
2. Independence 3. Due Pro Care |
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3 Fieldwork Standards
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1. Planning & Supervision
2. Understanding of I/C 3. Evidential Matter |
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4 Reporting Standards
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1. GAAP
2. Consisitency 3. Disclosure 4. Opinion |
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Objectives of an audit?
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1. Ensure appr presentation & disclosure.
2. Proper valuation of items 3. Confire A & L 4. Timely recording of trans. 5. GAAP 6. Compliance 7. Determine existence of Assets 8. Determine Adequacy of I/C |
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What should be considered when planning an attestation engagement?
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1. Presentation Criteria
2. Attestation Risk 3. Materiality 4. Items like to req adj 5. Modification of attest proc's 6. Nature of Report |
CRIMMR
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Things that affect NTE?
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1. Auditor's familiarity with client & business
2. Size & Complexity of the company. 3. Past experience with the industry |
Fam SP
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3 types of audits?
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Financial, Compliance, Operational
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CFO
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What is a compilation engagement?
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presentation of managments financial info in the form of f/s.
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What proc's should an auditor follow when conducting a comp engagement?
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1. Understand accting principles
2. Understand the clients business trans & accting records. 3. Consider whether other pro svcs are needed. 4. Read the f/s 5. Consider whether a client rep letter should be obtained |
AACCR
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What is a review engagement?
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A process of conducting inquiry and analytical proc's for the purpose of providing limited assurance that f/s don't req mat'l modifications in order to comply with GAAP.
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What inquiries and analytical proc's should an auditor make when conducting a review engagement?
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1. Understand accting principles and industry practices.
2. Understand clients business 3. Review actions taken at meetings of the stkholders 4. Interview mnmgt 5. Read F/S to ensure consistent application of GAAP 6. Identify events occuring subsequent to the date of the f/s |
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Examples of attestation engagments and not attestation engagements.
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Attestation Engagements- audits, reviews, reports on I/C, supplementary financial info and certain compliance audits.
Not attestation - compilations, tax prep, consulting engagements providing constructive advice and disclosre consulting. |
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What conditions must be satisfied prior to accepting an agreed upon proc's engagement?
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1. Independence
2. Accountant and specified users must agree on procedures and basis of accting. 3. Specified users must take responsibility. 4. Subject matter must be able to be measured. 5. Evidential matter must exist. 6. Report must be restricted to use by the specified users. |
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