Audit review 11/4/19

  1. In a review, the accountant should make inquiries documented by written representations from management. Specific representations include, among others, information about -------------------- events
    In a review, the accountant should make inquiries documented by written representations from management. Specific representations include, among others, information about subsequent  events
  2. compilations do not require the accountant to make ------------- or perform other procedures to -----------, ---------------, or ----------- information about events prior or subsequent to the date of the financial statements
    compilations do not require the accountant to make inquiries or perform other procedures to verify, corroborate, or review information about events prior or subsequent to the date of the financial statements
  3. compilations do not require the accountant to make inquiries or perform other procedures to verify, corroborate, or review information about events ---------------------------- to the date of the financial statements
    compilations do not require the accountant to make inquiries or perform other procedures to verify, corroborate, or review information about events prior or subsequent to the date of the financial statements
  4. Subsequent events procedures include (1) ---------------------------------------;
    (2) --------------------------------------;
    (3) ---------------------------------------;
    (4) --------------------------------------;
    (5)---------------------------------------
    (6) --------------------------------------------.
    • Subsequent events procedures include (1) reading the latest subsequent interim statements, if any;
    • (2) inquiring of management and those charged with governance about the occurrence of subsequent events and various financial and accounting matters;
    • (3) reading the minutes of meetings of owners, management, and those charged with governance;
    • (4) obtaining a letter of representations from management;
    • (5) inquiring of the entity’s legal counsel; and
    • (6) obtaining an understanding of management’s procedures for identifying subsequent events.
  5. ------------------- the recorded assets to insurance policies supports the rights assertion
    Vouching the recorded assets to insurance policies supports the rights assertion
  6. Vouching the recorded assets to insurance policies supports the rights ------------------
    Vouching the recorded assets to insurance policies supports the rights assertion
  7. Because of the pervasive effects of laws and regulations on the financial statements of governmental units, an auditor should obtain written management representations acknowledging that management has ----------------------------------------------------------------------------------------.
    Because of the pervasive effects of laws and regulations on the financial statements of governmental units, an auditor should obtain written management representations acknowledging that management has Identified and disclosed all laws and regulations that have a direct and material effect on its financial statements.
  8. An auditor who expresses an opinion that the financial statements of a nonissuer are presented fairly has determined that -------------- risk is acceptably low.
    An auditor who expresses an opinion that the financial statements of a nonissuer are presented fairly has determined that Audit risk is acceptably low.
  9. -------------------- is the risk of expressing an inappropriate opinion when the statements are materially misstated.
    Audit risk is the risk of expressing an inappropriate opinion when the statements are materially misstated.
  10. To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by dividing average inventory into ------------------------.
    To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by dividing average inventory into Cost of goods sold.
  11. To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by ---------------------------------------------------------------------.
    To measure how effectively an entity employs its resources, an auditor calculates inventory turnover by dividing average inventory into Cost of goods sold.
  12. In an auditor’s report on statements prepared using a special purpose framework, the auditor should include a -------------------------------------------------------- and, in some cases, a paragraph limiting use. The auditor’s report also generally includes a basis of accounting (emphasis-of-matter) paragraph
    In an auditor’s report on statements prepared using a special purpose framework, the auditor should include a paragraph expressing or disclaiming an opinion and, in some cases, a paragraph limiting use. The auditor’s report also generally includes a basis of accounting (emphasis-of-matter) paragraph
  13. In an auditor’s report on statements prepared using a special purpose framework, the auditor should include a paragraph expressing or disclaiming an opinion and, in some cases, a paragraph limiting use. The auditor’s report also generally includes a -------------------------------------------------------------------
    In an auditor’s report on statements prepared using a special purpose framework, the auditor should include a paragraph expressing or disclaiming an opinion and, in some cases, a paragraph limiting use. The auditor’s report also generally includes a basis of accounting (emphasis-of-matter) paragraph
  14. The control environment is the foundation for all other control components. It provides discipline and structure, sets the tone of the organization, and influences the control consciousness of employees. Its components include
    (1) ------------------------------
    (2) -------------------------
    (3) ----------------------------
    (4) -----------------------------------
    (5) ----------------------------
    (6) ---------------------
    (7)-----------------------
    • The control environment is the foundation for all other control components. It provides discipline and structure, sets the tone of the organization, and influences the control consciousness of employees. Its components include
    • (1) participation of those charged with governance,
    • (2) integrity and ethical values,
    • (3) organizational structure,
    • (4) management’s philosophy and operating style,
    • (5) assignment of authority and responsibility,
    • (6) human resource policies and practices, and
    • (7) commitment to competence.
  15. To safeguard the assets through effective internal control, accounts receivable that are written off should be transferred to -------------------------------------.
    To safeguard the assets through effective internal control, accounts receivable that are written off should be transferred to A separate ledger.
  16. Accounts receivable that are ------------------------- should be transferred to a separate ledger.
    Accounts receivable that are written off should be transferred to a separate ledger.
Author
Joens1313
ID
349395
Card Set
Audit review 11/4/19
Description
Audit review 11/4/19
Updated