Term
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Definition
How many days after year end do large accelerated filers have to file with the SEC? (greater than $700 million market cap) |
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Term
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Definition
How many days after year end do accelerated filers have to file with the SEC? (greater than $75 million, less than $700 million market cap) |
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Term
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Definition
How many days after year end do non accelerated filers have to file with the SEC? (less than $75 million market cap) |
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Term
1. attorney letter 2. mgmt rep letter 3. audit opinion 4. mgmt letter 5. audit committee communications |
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Definition
major documents at year end |
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Term
revenue and expense accounts attorney letters management representations audit documentation review subsequent events |
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Definition
activities between end of year and last day of fieldwork |
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inquiry of clients minutes of meetings review contracts/loan agreement review taxing/governmental agencies guarantees from bank confirmations legal services documentation |
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Definition
procedures for contingent liabilities, hidden liabilities, litigation, claims and assessments |
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Term
cannot issue audit opinion unless you have management representations letter |
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Definition
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Term
audit report date (aka audit completion date) |
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Definition
what is the date of the management representations letter? |
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Term
alleviates liability on auditors, shows management responsibility for the fairness of the financial statements and fraud program and controls |
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Definition
purpose of the management representations letter? |
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Term
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Definition
considers the current period income effects of misstatement |
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Term
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Definition
considers the aggregate effect of the adjustments on the entity's balance sheet |
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Term
review latest interim financial statements inquire officers/other executives read minutes of meetings obtain attorney letters obtain mgmt representations letter |
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Definition
procedures in subsequent period |
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Term
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Definition
provide new information about conditions existing at balance sheet date |
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Term
adjust financial statmenets to reflect new information |
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Definition
What do you do with Type I subsequent events |
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Term
Type II Subsequent Events |
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Definition
involve events occurring after balance sheet date |
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Term
disclose in financial statements (if extreme, prepare pro forma financial statements) |
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Definition
What to do with Type II subsequent events |
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Term
Type II subsequent events |
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Definition
non-recognized subsequent events |
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Term
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Definition
recognized subsequent events |
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Term
subsequent discovery of facts omitted procedures communication with audit committee management letters |
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Definition
activities following issuance of auditor's reports |
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Term
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Definition
a control deficiency that adversely affects the accounting and reporting function such that there is more than a remote likelihood that a more than inconsequential F/S misstatement will not be prevented or detected |
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Term
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Definition
significant deficiency that results in more than a remote likelihood that a material F/S misstatement will not be prevented or detected |
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Term
management letters are NOT required under GAAS |
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Definition
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Term
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Definition
provide recommendations to client for improving effectiveness and efficiency of operations, delivered by auditor to client following audit engagement |
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Term
subseuent discovery of facts omitted porcedures communication with those charged with governance management letters |
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Definition
review following audit report release date |
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Term
within 60 days of report release date |
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Definition
documentation completion date for ALL audits (public and private) |
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Term
1. all audit documentation is reviewed 2. F/S prepared (and footnotes) 3. signed mgmt rep letter by CEO/CFO |
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Definition
3 requirements for the earliest the opinion date can be |
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Term
test basis materiality significant estimates |
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Definition
specific references in the scope paragraph of the standard report |
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Term
unqualified opinion adverse opinion (material weakness) disclaimer |
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Definition
types of internal control opinions |
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Term
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Definition
issued when departure from GAAP is material but not pervasive |
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Term
circumstance imposed scope limitation |
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Definition
situation in which matters beyond auditors' and client's control limit procedures performed by the auditor |
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Term
client imposed scope limitation |
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Definition
situation in which client specifically limits auditors procedures (use disclaimer) |
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Term
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Definition
issued when scope limitation material, but not pervasive |
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Term
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Definition
issued when pervasive scope limitation (usually client imposed) |
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Term
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Definition
if serious going concern uncertainty, issue |
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Term
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Definition
allows for unqualified opinions on FS that are not in conformity with GAAP if GAAP would be misleading |
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Term
financial relationships management relationships |
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Definition
two general types of relations that can compromise auditors independence |
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Term
qualified unqualified disclaimer adverse |
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Definition
4 types of audit opinions |
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Term
1. assess fraud risk 2. design the audit to detect fraud 3. report findings to appropriate persons |
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Definition
3 SAS 99 activities that must be performed |
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Term
nature of audit procedures |
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Definition
effectiveness of tests; type of procedures preformed; quality of evidence |
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Term
timing of audit procedures |
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Definition
when the procedures are performed |
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Term
extent of the audit procedures |
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Definition
how many procedures are performed; quantity |
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Term
early planning stages and wrap up |
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Definition
when are analytical procedures required during audit engagements? |
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Term
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Definition
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effective internal controls; increase detection risk |
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Definition
what can lower assessment of control risk? how does this impact detection risk? |
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Term
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Definition
are all transactions recorded? moving forward from original source documents to see if recorded in general ledger/FS |
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Term
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Definition
what management assertion is associated with tracing? |
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Term
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Definition
taking the accounts/transactions and looking back to determine their original source |
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Term
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Definition
management assertion associated with vouching |
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Term
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Definition
auditors' mental attitude and impartiality with respect to the client |
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Term
independence in appearance |
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Definition
the extent to which others perceive auditors to be independent |
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Term
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Definition
the risk that the audit team's procdres will fail to detect a material misstatement |
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Term
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Definition
the probability that material misstatement will not be prevented or detected on a timely basis by the entity's internal controls |
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Term
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Definition
the probability that a material misstatement will occur |
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Term
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Definition
unintentional misstatements or omissions |
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Term
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Definition
knowingly making material misrepresentations of fact with the intent of inducing someone to believe the falsehood and act on it and thus suffer loss or damage |
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Term
schedules and analysis to be prepared by the client's employees |
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Definition
an audit engagement letter should normally included what matters of agreement between the auditor and the client |
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Term
identifying related parties |
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Definition
would be performed during planning |
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Term
1. attempt to contact the predecessor auditors 2. evaluate the integrity of management 3. assess the firm's resources to ensure that they are sufficient to permit them to accept the engagement |
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Definition
prior to accepting a new audit engagement, a public accounting firm should: |
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Term
performing tests of controls |
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Definition
major stage of the audit that is closely related to attributes sampling |
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Term
the expected population deviation rate with probability equal to the risk of over reliance that the population deviation rate is higher |
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Definition
the interpretation of the upper limit rate of deviation in an attributes sampling application |
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Term
use attributes sampling in selecting purchase orders for indication of proper authorization |
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Definition
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Term
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Definition
primary benefit of using non statistical sampling |
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Term
examine sample items and determine the sample estimate |
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Definition
step normally performed last in a sampling application |
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Term
provide objective basis for quantitatively evaluating sampel risk |
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Definition
an advantage of statistical sampling over non statistical sampling methods is that statistical methods: |
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Term
Compliance Efficiency and effectiveness Reliability |
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Definition
The COSO provides a definition of internal controls which includes the following 3 categories from most important to least important |
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Term
Observation Inquiry Document examination Reperformance |
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Definition
There are several phases to the auditor’s evaluation of a client’s internal controls. Phase 3 requires that auditors perform tests of controls and reassess risk of material misstatement rely on 4 different testing methods. What are they? |
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Term
Custody Authorization Recording Reconciliation |
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Definition
List 4 different separation of duties |
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Term
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Definition
Primary PCAOB assertion for each of the 2 cycles? (Revenue and Collection) |
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