An integrated audit is
required for all companies
required by the IAASB
Composed of financial statement audit and an audit of internal control over financial reporting
conducted according to audit standards of AICPA
Evidence
is composed of various items including underlying records of accounts and docs
must be in written form
includes records created by the auditor to document audit activities
includes only corroborating info obtained from outside the client
The PCAOB
is a not for profit entity
shares responsibility for standard setting with AICPA
creates audit standards that CPA firms must use in all audits
is independent of SEC oversight
The “highest” level of a CPA firm hierarchy is:
The shareholders.
The partners
The managers
Both a and b
Which of the following is NOT a “Big Four” firm?
PWC
Grant Thornton
Deloitte
EY
Which body regulates the audits of nonpublic companies in the United States?
PCAOB
AICPA
IFRS
SEC
The Securities and Exchange Commission:
is a govt. entity
authorizes all PCAOB standards before they become effective
Can reject company filings or suspend trading of company stocks
All of the above
The GASB:
Sets audit standards for auditors engaged in auditing not-for-profit entities.
Regulates state and local governments.
Set reporting standards for state and local government entities
Financial statements must be prepared:
in accordance with GAAP
in accordance with IFRS.
in accordance with OCBOA
Any of the above, depending on which set of standards the circumstances dictate as applicable.
The audit engagement team consists of:
more than one partner.
associates and seniors.
Managers
Which of the following organizations is considered to be a public company?
A firm whose privately held stock is owned exclusively by an individual.
A partnership of doctors.
A privately-held firm controlled by three family members
A firm whose stock is registered with the SEC
The auditor
prepares the financial statements after the client agrees to all adjustments.
writes the footnotes to the financial statements to ensure their accuracy.
performs work to reach an opinion on the ICFR and financial statements.
None of the above
To which of the following would AICPA attest standards not apply?
Standard for Accounting and Review Services (SSARS)
Elder Care
Loans under TALF
Internal Control for nonpublic company
