- Study guides, Class notes & Summaries

Indications of noncompliance - ANSWER 1) Investigation by governmental agency 2) Violations cited by regulators 3) Unusually large payments made in cash 4) Unexplained payments of gov't officials 5) Improperly recorded transactions 6) Purchasing prices significantly above/below market 7) Adverse media comment 8) Payments to registered tax havens What steps should an auditor take when noncompliance is identified or suspected? - ANSWER 1) Obtain understanding of the nature of the act and...

-

88 pages

Written in 2023/2024

Grade A+

KenAli

How is Information Relevant to Auditing? - ANSWER The financial statements that are audited are comprised of information. The audit report is also info itself. Reduces info asymmetries and info risk. What does it mean to be an audit professional? - ANSWER To be ethical, inquisitive, and professionally skeptical. Expectations are to protect the public interest and be knowledgeable/competent.

-

57 pages

Written in 2023/2024

Grade A+

KenAli

an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to fraud or error, and a critical assessment of audit evidence; includes questioning contradictory audit evidence and considering sufficiency and appropriateness of audit evidence obtained - ANSWER Define professional skepticism. What does it include? -questioning mind -suspension of judgment (neutral mindset) -search for knowledge -interpersonal understanding (what is the ...

-

20 pages

Written in 2023/2024

Grade A+

KenAli

which of the following audit committee activities is of the greatest benefit to internal audit activity? a. review and endorsement of all internal auditing engagement communications prior to their release b. assurance that the external auditor will rely on the work of the internal audit activity whenever possible c. review and approval of engagement work programs d. determine whether scope limitations impede the ability of the internal audit activity to execute its responsibilities - ANS...

-

17 pages

Written in 2023/2024

Grade A+

KenAli

planning the audit, how does materiality play a role? - ANSWER materiality is a matter of professional judgement, determine materiality for financial statements as a whole, provides basis for: nature and extent of risk assessment procedures, ID risks of material misstatement, determine procedures how to determine materiality - ANSWER start with a firm provided benchmark, adjust for qualitative concerns

-

14 pages

Written in 2023/2024

Grade A+

KenAli

Why is the PCAOB's audit documentation retention requirement longer than AICPA & ISA? - ANSWER It takes longer for litigation to form for public companies, so PCAOB wanted the longer time frame in order to have the documentation when needed. Report Release Date - ANSWER date auditor grants permission to use the auditor's report

-

6 pages

Written in 2023/2024

Grade A+

KenAli

ACC 550 EXAMS BUNDLE | Questions with 100% Correct Answers)

-

7 items

QUINTER

accrual base of accounting - ANSWER Accounting basis in which companies record, in the periods in which the events occur, transactions that change a company's financial statements, even if cash was not exchanged. cash basis of accounting - ANSWER Reporting income when the cash is received and expenses when the cash is paid.

-

4 pages

Written in 2023/2024

Grade A+

QUINTER

ACC 550 Final Exam| Questions Solved 100% Correct | Verified What are some takeaways from Cynthia Cooper? - ANSWER 1. Ask questions until you're comfortable 2. What do you want your "dash" to stand for? 3. Is loyalty to superiors an appropriate value? 4. David Myers told his wife that if CC asked, he would tell the truth. Lesson: ask questions! 5. You have the power of choice. You can give it away but nobody can take it from you. How do you effectively resolve an ethical dilemma? - A...

-

14 pages

Written in 2023/2024

Grade A+

QUINTER

Three Conditions that Can Lead to Financial Statement Fraud (CAQ Video) - ANSWER 1. Pressure/incentive 2. Opportunity 3. Rationalization Fraud triangle! Why does AU-C 240 Focus on Testing Journal Entries? - ANSWER They're the best way to reveal mgmt override. The majority of sig F/S fraud involves senior mgmt, so have to test JEs for mgmt override.

-

64 pages

Written in 2023/2024

Grade A+

QUINTER

Assurance Services - ANSWER independent professional services that improve the quality of information, or its context for decision makers; used when people have to make decisions, improve information used in decision process attestation services: -audits -reviews - ANSWER What are some examples of assurance services

-

19 pages

Written in 2023/2024

Grade A+

QUINTER

what is the most costly type of fraud - ANSWER financial reporting fraud Can fraud be eliminated? - ANSWER no how does one distinguish between error and fraud? - ANSWER Intent who is responsible for preventing and detecting fraud - ANSWER management and those charged with governance

-

14 pages

Written in 2023/2024

Grade A+

QUINTER

Widely Held Perception of Accounting - ANSWER "Bean counting." Public perception is narrow. They perceive accting as a mechanical, black-or-white, right-or-wrong process. In reality, accting plays a critical role is supporting a prosperous society. This is represented by the pathways vision model. Says that economic activity goes into gray areas that lead to accting judgments (critical thinking) to provide useful info that leads to good decisions and a prosperous society. Good decisions h...

-

57 pages

Written in 2023/2024

Grade A+

QUINTER

Given that internal audit engagements must be performed with proficiency and due professional care, which of the following is true? a. all internal auditors must be proficient in all necessary competencies b. the internal audit activity need not decline an engagement because it lacks the needed competencies c. an internal auditor should have the expertise of a specialist in fraud detection d. an internal auditor should have the expertise of a specialist in IT auditing - ANSWER B? not A

-

21 pages

Written in 2023/2024

Grade A+

QUINTER

What is the most costly type of fraud? - ANSWER Financial Reporting Fraud What is the distinguishing factor between fraud and error? - ANSWER "...whether the underlying action that results in the misstatement of the financial statements is intentional or unintentional" Are auditors responsible for the detection of fraud? - ANSWER "An auditor conducting an audit in accordance with ISA's is responsible for obtaining reasonable assurance that the financial statements taken as a whole are ...

-

88 pages

Written in 2023/2024

Grade A+

QUINTER

Financial Reporting Fraud -theft (misappropriation of assets) - ANSWER Which is the most costly type of fraud? What is the most common type of fraud? -revenue recognition -improper disclosures -manipulation of expenses - ANSWER What fraud schemes are the most common (i.e. which accounts)?

-

34 pages

Written in 2023/2024

Grade A+

QUINTER

Purpose of Audit Documentation - Biggest Reason - ANSWER evidence of the auditor's basis for a conclusion evidence the audit was planned and performed in accordance with GAAS & applicable legal & regulatory requirements Additional purposes of audit documentation - ANSWER assist in planning and performing engagement assist in engagement review and supervision demonstrate accountability for work performed retain record matters for future audits enable quality control reviews enable exte...

-

5 pages

Written in 2023/2024

Grade A+

QUINTER

although all the current members of an internal audit activity have good records of performance, the manager is not sure if any of the members are ready to assume a management role. which of the following is an advantage of bringing in an outsider rather than promoting from within? a. management training costs are reduced when a qualified outsider is hired b. the manager can be sure that the new position will be filled by a competent employee c. bringing in an outsider is a less expensive ...

-

17 pages

Written in 2023/2024

Grade A+

QUINTER