1-Purpose & premis of an audit 2-Personal responsibilities of the auditor 3-Auditor actions in performing the audit 4-Reporting Includes all the key concepts of GAAS in a more organized manner, also includes other concept not in GAAS like identifying the purpose of an audit and management responsibilities 2-13 List the 3 categories of GAAS, Discuss why the GAAS and the SAS are considered minimum standards of performance for auditors. 1-General Standards 2-Standards of Fieldwork 3-Standards of reporting Individual engagements may require the auditor to perform audit work beyond the specified in GAAS & SAS Professional Judgement must follow all standards 2-14 Why is independence such an important standard for auditors? How does auditor independence relate to the agancey If an auditor isn't independent of the client financial statement users may lose confidence in the auditor's ability to report objectively and truthfully; Also
relationships between owners and managers discussed in Chapter 1? management may not trust the auditor's work. 2-15 Which of the following is not a part of the role of internal auditors? Providing reports on the reliability of financial statements to investors and creditors 2-16 Operational auditing is oriented primarily toward Future umprovements to accomplish the goals of management 2-17 Which of the following would be considered an assurance service engagement? Expressing and opinion about the reliability of a client's financial statement 2-18 Which of the following best places the events of the last decade in proper sequence? Increased consulting services to audit clients, Enron and other scandals, SOX prohibition of most consulting work for audit clients, establishment of PCAOB 2-19 Which of the following statements best describes managemetns and the external auditor's respective levels of responsibility for a public company's financial statements? Management has the primary responsibility to ensure that the company's financial statemetns are prepared in accordance with GAAP, an auditor provides reasonable assurance that the statements are free of material misstatement 2-20 Which of the following best describes the relationship between business objectivies, strategies, processes, controls and transactions? To achieve its objectives, a business formulates stratiegies and implements processes which are carried out thru business transactions. The entity's information and internal control systems must be designed to ensure that the transactions are properly executed, captured, and processed 2-21 The Public Company Accounting Is a quasi-governmental organization that has legal authority to set auditing
Oversight Board (PCAOB) standards for audits of public companies 2-22 Which of the following is correct regarding the types of audits over which the ASB and the PCAOB respectively have standard setting authority in the US? Accounting Standard Board (ASB) - Non public Company Audits Public Company Accounting Oversight Board (PCAOB) - Public Company Audits 2-23 Which of the following best describes the general character of the 3 GAAS Classified as standards of field work? Criteria for audit planning & evidence gathering
You've reached the end of your free preview.
Want to read all 10 pages?
- Fall '08
- Auditor's report