Deck 2

Question 1

Disclaimer of opinion

Answer 1

1. Material and Pervasive
2. Auditor is unable to obtain sufficient appropriate evidence on which to base an opinion
3. Auditor does not express an opinion

Question 2

Quality control standards for a firm (LEAHEM)

Answer 2

1. Leadership- tone at the top
2. Ethical requirements
3. Acceptance and continuance of client relationships
4. Human Resources
5. Engagement performance
6. Monitoring

Question 3

What’s a data dictionary?

Answer 3

A file that contains definitions of data records and files and the list of programs used to process them.

Question 4

Steps to conceptual framework

Answer 4

1. Identity threats
2. Evaluate significance of threat
3. Apply safeguards
4. Continue to reassess ( included with framework for independence)

Question 5

Another name for limited assurance

Answer 5

Negative assurance

Question 6

Does the auditor rely on audit evidence that is merely pervasive or merely conclusive?

Answer 6

Merely pervasive Not conclusive

Question 7

How long does a cpa have to comply with a clients request for records?

Answer 7

45 days

Question 8

How often are PCAOB inspections?

Answer 8

PCAOB inspections are every 3 years
OR
every year for firms that do 100 or more issuer audits

Question 9

SAS promoted by ASB- auditing standards board

Answer 9

Generally accepted auditing standards are defined as SAS.