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12 Cards in this Set
- Front
- Back
How does the auditor control for the risk of incorrect acceptance in the context of sample size selection?
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1. Tolerable Error
2. Risk of incorrect acceptance 3. Number of errors allowed 4. Recorded amount of the population being accepted |
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What affects the sample size in an attribute sampling application?
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1. Allowable risk of assessing control risk too low
2. Tolerable deviation rate 3. Expected deviation rate |
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When is the use of ratio estimation most effective as a sampling technique?
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The calculated audit amounts are approximately proportional to the client's book amounts.
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What is the equation relating to the allowance for sampling risk?
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Upper Deviation Rate - Sample Deviation Rate = Allowance for Sampling Risk
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What is the primary objective of probability proportional to size (PPS)?
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PPS is a sampling method designed to estimate overstatement errors.
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What should an auditor consider when determining the sample size for a test of controls?
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1. Expected deviation rate
2. Tolerable deviation rate 3. Allowable risk of assessing control risk too low |
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What language is included in the scope paragraph of the standard auditor's report?
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1. audit prepared in acccordance with GAAP
2. audit was planned/performed to obtain reasonable assurance that F/S free from material misstatement. 3. audit included examing evidence on a test basis 4. assessing the accounting principles used and mgmt's estimates 5. the audit provides a reasonable basis for our opinion. |
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What are the going concern periods under IAS and GAAP?
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IAS = at least 12 months
GAAP = can't exceed 12 months |
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What is the auditor's responsibility for supplementary information required by the GASB?
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The auditor should apply limited procedures to the information (to ensure its consistency with the audited financial statements) and add an other-matter paragraph to the financial statement audit report.
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What are the different IT related duties within a client's IT system?
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C - Control Team
O - Operators P - Programmer A - Analyst L - Librarian |
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What is the relatioship between: (1) Audit risk of non-compliance, (2) risk of mat'l non-compliance, (3) detection risk
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Audit Risk of Non-compliance = [risk of mat'l non-compliance] * [detection risk]
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What are the audit partner rotation requirements for issues and non-issuers?
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Issuers = every five years
Non-issuers = no requirement exists |