Unit 1 outline
Quality control: Competent people, independence, training
Audit: attest and assurance
Assurance: auditor assuring the reader its okay
Attest: over looks everything, top of the umbrella, based on GAAS,
expressing opinion on historical financ
Under the IFACs Code of Ethics for Professional Accountants,
An accountant in public practice may accept an inconsequential gift from a client.
Which of the following is a basic tool used by the auditor to control the audit work
and review the progress of
Which of the following procedures relating to the examination of accounts payable could
the auditor delegate entirely to the clients employees?
A. Prepare a schedule of accounts payable.
1. The ultimate purpose of understanding the entity and its environment and assessing the risks of
material misstatement is to contribute to the auditors assessment of the risk that
Material misstatements may exist in the financial statements.
2. The risk
Computer Services Company (CSC) processes payroll transactions for schools. Drake, CPA, is engaged to
report on CSCs controls implemented as of a specific date. These controls are relevant to the schools
internal control, so Drakes report will
Which of the following comparisons would be most useful to an auditor in evaluating the results of an
Current-year revenue to budgeted current-year revenue.
An auditor most likely would limit substantive audit tests of sales transactio
Which of the following most likely would not be considered an inherent limitation of the potential
effectiveness of an entitys internal control?
Collusion among employees.
Which of the
Planning: continuous planning throughout the whole audit, these are to review and understand
Risk Assessment: put em on Score sheet by accounts and at the end of the day we score them to find if
its material, and to see if it needs further adjustme