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37 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Representation made by the Auditee |
Assertions |
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Types of Audit |
Financial statement Audit, COMPLIANCE AUDIT AND OPERATIONAL AUDIT |
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Types of Auditors |
External Auditor, Internal Auditor and Government Auditor |
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What is the Responsibility of auditor? |
Mainly, To form and Express an opinion General principles 1. TO comply in Code of Ethics for CPA promulgated by BOA 2. To conduct audit in accordance with PSA 3. To plan or perform the Audit with the attitude of professional skeptism |
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What is the Responsibility of the Management? |
To prepare the financial statements in accordance with PFRS |
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What are the inherent limitations? |
1. THE USE OF TESTING OR SAMPLING RISK 2. ERROR IN APPLICATION OF JUDGMENT OR NON SAMPLING RISK 3. RELIANCE ON MANAGEMENT REPRESENTATION 4. INHERENT LIMITATIONS OF CLIENTS ACCOUNTING AND INTERNAL CONTROL SYSTEMS 5. NATURE OF EVIDENCE ( GENERALLY PERSUASIVE RATHER THAN CONCLUSIVE) |
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Complexity of information means what? |
Complicated |
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consequence in decisions means what? |
Important decisions |
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Remoteness of Information means what? |
Not easily accessible |
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Verifiable information means what? |
Two or more qualified individuals working together independently, reached each essentially similar conclusions |
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These are established to measure the quality of performance |
Standards |
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This is the minimum standards generally accepted and it measures the quality of auditor's performance |
GAAS (GENERALLY ACCEPTED AUDITING STANDARDS) |
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What are the General Standards of GAAS? |
Technical Training and proficiency Independence Professional Care |
TIP |
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What are the Standards of Fieldwork of GAAS? |
Planning Internal Control considerations E IDENTICAL MATTER |
PIE |
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What are the Standards of Reporting of GAAS? |
GAAP INCONSISTENCY DISCLOSURE OPINION |
GIDO |
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What is the meaning of AASC? |
Auditing and Assurance Standards Council who promulgate Auditing Standards, practices and procedures |
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What are the 3 assurance engagement under AASC pronouncement? |
Audit - PSA - PAPS REVIEW - PSRE - PREPS OTHER ASSURANCE ENGAGEMENT - PSAE - PAEPS |
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What are the 2 RELATED SERVICES under AASC PRONOUNCEMENT? |
Agreed upon procedures and Compilation - PSRS - PRSPS |
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What are the practice statements? |
Provide Practical assistance to the auditor while INTERPRETATIONS are designed resolve issues relating to standard |
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What are the ethical requirements? |
Professional competence and due care Objectivity Confidentiality Professional BEHAVIOR INTEGRITY |
Pocpi |
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What are the type of engagement performance? |
DIRECTION SUPERVISION REVIEW CONSULTATION ENGAGEMENT QUALITY CONTROL REVIEW DIFFERENCES OF OPINION |
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Who is the responsible for the audit engagement, it's Performance and for audit reports? |
Engagement partner |
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What are the three types of of Quality control policies and procedures? |
Monitoring Ethical requirements Engagement performance |
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Who is the body conducting the oversight of Quality of Audit of Financial Statements? |
Quality Review Committee or QRC |
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What are the Causes of Misstatements? |
Error Fraud Non Compliance with Laws and regulations |
EFN |
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What are the two types of Fraud? |
Management Fraud or Fraudulent Financial Reporting and EMPLOYEE FRAUD OR MISAPPROPRIATION OF ASSETS due to lack of control |
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What is Fraud? |
Motivation and perceived opportunity to do so |
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Types of Financial Statements assertions |
Eights and Obligation EXISTENCE COMPLETENESS VALUATION AND ALLICATION PRESENTATION AND DISCLOSURE |
RECVD |
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What are the types of Audit procedures? |
Confirmation OBSERVATION COMPUTATION ANALYTICAL PROCEDURES INSPECTION INQUIRY |
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PROCEDURES TO GATHER SUFFICIENT AND APPROPRIATE EVIDENCE |
Audit procedures |
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What is the Audit procedure where auditor look at the process? |
Observation |
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What is the Audit procedure where auditor checks the mathematical accuracy? |
Computation |
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What is the Audit procedure where auditor analyze the significant trend and analysis? |
Analytical procedure |
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What is the Audit procedure where auditor do the Examination? |
Inspection |
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What is the Audit procedure where auditor seeks information? |
Inquiry |
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What is the Audit process? |
1. ACCEPTING AN ENGAGEMENT - PRELIMINARY ACTIVITIES 2. AUDIT PLANNING - PRELIMINARY ASSESSMENT OF RISK AND MATERIALITY 3. CONSIDERING INTERNAL CONTROL - OBTAINING UNDERSTANDING OF CONTROL SYSTEMS AND ASSESSING THE LEVEL OF CONTROL RISK BY PERFORMING TEST OF CONTROL 4. PERFORMING SUBSTANTIVE TEST 5. COMPLETING THE AUDIT 6. ISSUING A REPORT |
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Who usually signs the engagement letter for an audit of a private company? |
Board of Directors Representative |
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