In which type of service does the CPA assemble the financial statements but provide no assurance to third parties? Audit Compilation Review Bookkeeping
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In which type of service does the CPA assemble the financial statements but provide no assurance to third parties?
Audit
Compilation
Review
Bookkeeping
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- Which is NOT the function of an auditor? a. To give a true and fair view b. To ensure compliance to statutory acts applicable c. To do independent examination of books of accounts d. To prepare financial statementsWhich of the following is not part of audit evidence? Information gathered by the auditors from stock exchange Information contained in the accounting records Confirmation from third parties Audit firm quality control procedure for client acceptance and continuationWhat is the main purpose of information presented in notes to the financial statements? • To provide disclosures required by generally accepted accounting principles. To correct improper presentation in the financial statements. To provide recognition of amounts not included in the totals of the financial statements. To present management's responses to auditor comments.
- Which of the following is NOT an example of externally generated evidence sent directly to the auditor? O supplier invoices O bank confirmations O payable confirmations responses to legal lettersThe audit documentation are the connecting link between the client's accounting records, financial statements, and the auditor's report. TRUE OR FALSE? WHY?Which of the following is not an assurance engagement?* Tax services Financial statement audit Information reliability services Examination of internal control
- What is the purpose of an audit in accounting? How does it differ from other forms of accounting services such as consulting or tax preparation?why would an auditor ensure that all revenue-related disclosures are made in the financial statementsWhich of the following may not be the possible sources of obtaining information in respect of client's business for the purpose of preparation of an audit plan? O a. Minutes of directors and shareholders of entity's competitors O b. Discussion of audit matters with an internal auditor OC. Discussions with client's lawyers O d. Predecessor auditor's working papers
- A CPA audits the financial statements of an issuer. Which statement relating to CAMs is TRUE? a. If the auditor determines that no CAMs existed, the audit report includes a paragraph defining CAMs and stating that no Cams existed. b. CAMs are not required to be communicated to the TCWG (Audit Committee). c. CAMs usually alter the opinion on the financial statements. d. CAMs involve matters of most significance to the audit. e. The paragraph discussing a discovered CAM should not include how the CAM was addressed in the audit.What are the auditor’s responsibilities to communicate information to the audit committee under PCAOB standards? If the auditor discovers that the audit committee routinely ignores such communications especially when they are critical of management’s use of GAAP in the financial statements, what step(s) might the auditor take at this point?Which of the following types of audit evidence is the least persuasive? a. Bank statements obtained from the client. O b. O c. Prenumbered purchase order forms. O d. Correspondence from the client's attorney about litigation. Test counts of inventory performed by the auditor.
