AUD CPA EXAM QUESTIONS AND ANSWERS
Given the standard, what is the body and description?
SAS - Answers :AICPA
nonissuers (private)
Given the standard, what is the body and description?
PCAOB AS - Answers :PCAOB
issuers (public)
Given the standard, what is the body and description?
GAGAS - Answers :GAO
government
Given the standard, what is the body and description?
SSAE - Answers :AICPA
attestation, not historical financial stmts
Given the standard, what is the body and description?
SSARS - Answers :AICPA
unaudited of nonissuers
objective of f/s audit - Answers :obtain reasonable assurance the f/s is free of material
mistmt whether due to error or fraud
objective of the audit of IC over financial reporting - Answers :opinion on effectiveness
of IC
plan and perform audit to obtain approp. evidence to obtain reas. assurance
GAAS vs GAAP - Answers :GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
unmodified vs unqualified - Answers :unmodified: private
unqualified: public
4 required sections of audit report (unmodified, nonissuer) - Answers :OBRA
-auditor's opinion
-basis for opinion
-responsibilities of management for the f/s
-auditor's responsibilities for the audit of the f/s
Key audit matter vs. critical audit matter - Answers :after the basis of opinion
- KAM = nonissuer
, - CAM = issuer
Where in the audit report would you say the audit is in accordance with two sets of
standards? - Answers :Basis of Opinion paragraph
Where to site GAAS in the audit report? - Answers :Basis of Opinion and Auditor's
Responsibilities paragraph
Where to site GAAP in the audit report? (nonissuer) - Answers :Opinion paragraph and
managements responsibility paragraph
KAM - Answers :-optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
3 required sections of audit report (unmodified, issuer) - Answers :OBA
-Opinion section
-Basis of opinion section
-Critical audit matters
CAM - Answers :-generally after O&B
-doesn't alter opinion
-only info publically aware
-usually required (except broakers, invest. etc.)
document CAM
IPAD - Answers :For each CAM, audit report to include
-Identification of CAM
-desc. of Principle consideration for auditor to determine was a CAM
-desc. how the CAM was Addressed
-reference to relevant f/s accounts or Disclosures
Where to site PCAOB AS in the audit report? - Answers :Basis of Opinion section
Where to site GAAP in the audit report? (issuer) - Answers :opinion on the f/s
When to file form AP? - Answers :by 35th day after audit report filed with SEC or 10
days if in a registration statement
Where is the framework discussed (issuer and nonissuer) in the audit report? - Answers
:Issue: opinion
Nonissuer: opinion and resp. of mgt for f/s
Given the standard, what is the body and description?
SAS - Answers :AICPA
nonissuers (private)
Given the standard, what is the body and description?
PCAOB AS - Answers :PCAOB
issuers (public)
Given the standard, what is the body and description?
GAGAS - Answers :GAO
government
Given the standard, what is the body and description?
SSAE - Answers :AICPA
attestation, not historical financial stmts
Given the standard, what is the body and description?
SSARS - Answers :AICPA
unaudited of nonissuers
objective of f/s audit - Answers :obtain reasonable assurance the f/s is free of material
mistmt whether due to error or fraud
objective of the audit of IC over financial reporting - Answers :opinion on effectiveness
of IC
plan and perform audit to obtain approp. evidence to obtain reas. assurance
GAAS vs GAAP - Answers :GAAS: guidelines how to perform audit
GAAP: if transactions reported fairly
unmodified vs unqualified - Answers :unmodified: private
unqualified: public
4 required sections of audit report (unmodified, nonissuer) - Answers :OBRA
-auditor's opinion
-basis for opinion
-responsibilities of management for the f/s
-auditor's responsibilities for the audit of the f/s
Key audit matter vs. critical audit matter - Answers :after the basis of opinion
- KAM = nonissuer
, - CAM = issuer
Where in the audit report would you say the audit is in accordance with two sets of
standards? - Answers :Basis of Opinion paragraph
Where to site GAAS in the audit report? - Answers :Basis of Opinion and Auditor's
Responsibilities paragraph
Where to site GAAP in the audit report? (nonissuer) - Answers :Opinion paragraph and
managements responsibility paragraph
KAM - Answers :-optional
-not a separate opinion
-if it changes your opinion then not a KAM
-cant communicate a KAM if adverse or disclaimer
-document required
3 required sections of audit report (unmodified, issuer) - Answers :OBA
-Opinion section
-Basis of opinion section
-Critical audit matters
CAM - Answers :-generally after O&B
-doesn't alter opinion
-only info publically aware
-usually required (except broakers, invest. etc.)
document CAM
IPAD - Answers :For each CAM, audit report to include
-Identification of CAM
-desc. of Principle consideration for auditor to determine was a CAM
-desc. how the CAM was Addressed
-reference to relevant f/s accounts or Disclosures
Where to site PCAOB AS in the audit report? - Answers :Basis of Opinion section
Where to site GAAP in the audit report? (issuer) - Answers :opinion on the f/s
When to file form AP? - Answers :by 35th day after audit report filed with SEC or 10
days if in a registration statement
Where is the framework discussed (issuer and nonissuer) in the audit report? - Answers
:Issue: opinion
Nonissuer: opinion and resp. of mgt for f/s
