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Matters to consider before accepting an engagement quizlet
Matters to consider before accepting an engagement quizlet. Which of the following is a risk factor for misappropriation of assets? a) Generous performance-based compensation systems. What does Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. evaluation of all matters of continuing accounting significance. What are the factors that should be considered before accepting an engagement? 1) Risk analysis 2) Ethical considerations 3) Resources available to carry out the work 4) Companies Act 2006 considerations Study with Quizlet and memorize flashcards containing terms like What matters are there to consider before accepting appointment as auditors?, What reasons are there for a review?, What should be done to juniors before audit work? and more. , Before accepting an audit engagement, an auditor should Học với Quizlet và ghi nhớ các thẻ chứa thuật ngữ như Obtaining an engagement - TENDERING Considerations 6 factors, basic for fee computation, Accepting an engagement Auditor must consider: và hơn thế nữa. Provided a client with a financial statement format that does not Study with Quizlet and memorize flashcards containing terms like The following are considered by a CPA firm in deciding whether to accept a new client, except: A. awareness Which of the following is required before accepting a new audit engagement? I. -A justified change in accounting estimate. The client's standing in the business community. Yes No c. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's Before accepting an audit engagement, an auditor should make specific inquiries of the predecessor auditor regarding the predecessor's A Awareness of the consistency in the application of generally accepted accounting principles between periods. B Evaluation of all matters of continuing accounting significance. All matters of continuing accounting significance. b) opinion of any subsequent events occurring since the predecessor's audit report was issued. A preliminary understanding of the prospective client's industry and business b. Study with Quizlet and memorize flashcards containing terms like The purpose of the requirement in having communication between the predecessor and successor auditors is to: A) allow the predecessor to disclose information which would otherwise be confidential. C) help the client by facilitating the change of auditors Study with Quizlet and memorize flashcards containing terms like what are the benefits derived from planning audits, Identify the eight major steps in planning audits. The prospective client’s consent to make inquiries of the predecessor auditor. Does this generally apply to public or private companies?, 1. Awareness of the consistency in the application of generally accepted accounting principles between periods b. Study with Quizlet and memorize flashcards containing terms like Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. , 2) Before accepting an engagement to audit a new client, an auditor is required to: A) make inquiries of the predecessor auditor after obtaining the consent of the prospective client. Awareness of the consistency in the application of generally accepted accounting principles between periods. III. A representation letter from the prospective client Study with Quizlet and memorize flashcards containing terms like Which of the following is correct regarding a compilation of financial statements engagement in accordance with the Statements on Standards for Accounting and Review Services (SSARS)? If the accountant's independence is impaired, a qualified opinion must be issued. c) awareness of the Study with Quizlet and memorize flashcards containing terms like An accountant is most likely required to follow Statements on Standards for Accounting and Review Services (SSARS) when the accountant has: A. b) Management preoccupation with Study with Quizlet and memorize flashcards containing terms like Select all that apply Factors that should be considered when determining the staffing requirements for an audit include ______. Study with Quizlet and memorize flashcards containing terms like What must firms consider before accepting an audit engagement (acronym), TRIMROT, Technical competence matters to consider and more. Management reputation for failing to provide schedules to prior auditors on a timely basis. The audit documentation. Correct Prior to accepting a new audit engagement, an audit firm should (a) attempt to contact the predecessor auditor, (b) evaluate the integrity of management, and (c) assess the firm’s resources. Study with Quizlet and memorize flashcards containing terms like An auditor would express an unmodified opinion with an emphasis-of-matter paragraph added to the report for: -A justified change in accounting principle. and more. , Before accepting an engagement to audit a new client, an auditor is required to: A) make inquiries of the predecessor auditor after obtaining the consent of the prospective client. ) No, No, Yes c. c Before accepting an engagement to audit a new client, a CPA is required to obtain a. The CPA is unable to review the predecessor auditor's working papers due to Study with Quizlet and memorize flashcards containing terms like 14. Study with Quizlet and memorize flashcards containing terms like Which of the following situations precludes an accountant from preparing f/s that omit substantially required by the selected financial reporting framework, -which of the following matters should an accountant include when establishing an understanding with a client regarding the services to be performed for a compilation Study with Quizlet and memorize flashcards containing terms like There are three main reasons why an auditor should properly plan audit engagements. Ability to establish consistency If an entity has not previously been audited, the prospective auditor should _____. ) No, Yes, Yes, Which of the Study with Quizlet and memorize flashcards containing terms like A successor auditor most likely would make specific inquiries of the predecessor auditor regarding, A CPA is engaged to audit the financial statements of a nonissuer. Study with Quizlet and memorize flashcards containing terms like What matters should we consider before accepting an audit engagement?, Acceptance procedures:, What's in an engagement letter? and more. B. True or False, An auditor may reduce the amount of Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's Multiple Choice A. Used the information in a general ledger to prepare financial statements outside of an accounting software system. The client's probability of achieving an unqualified opinion. The prospective client's signature to the representation letter. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? A. Study with Quizlet and memorize flashcards containing terms like 11. how did you assess inherent risk and control Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted? A. Evaluation of all matters of continuing accounting significance c -The audit client must grant its approval before the communication can occur between the prospective auditor and the predecessor auditor. Facts that might bear on the integrity of management. Study with Quizlet and memorize flashcards containing terms like communication with predecessor auditor before accepting engagement should include inquiries regarding, opening balances in initial audit, material misstatements found in opening balances and more. II. The prospective client has fired its prior auditor. C. After the audit begins, the client's management questions the extent of procedures and objects to the confirmation of certain contracts. Before accepting or continuing an engagement or a relationship with a client, the accountant should ascertain that: A. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. Consider the implications of that refusal when deciding whether to accept the engagement. Ability to establish Study with Quizlet and memorize flashcards containing terms like Who is responsible for PUBLIC companies for the selection and appointment of the independent external auditor and reviewing the nature and scope of the engagement?, Under Sarbanes-Oxley Act (SOX): 1. how did you assess inherent risk and control Study with Quizlet and memorise flashcards containing terms like How might an assurance firm obtain an engagement (3), Factors to be considered before going to tender (6), PRIOR factors to consider before accepting engagement and others. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the A. The auditor's responsibility for determining the preliminary judgments about materiality and audit risk factors. Making inquiries of the predecessor auditor regarding matters that may affect the conduct of the audit. ) Yes, No, No b. , To emphasize auditor Study with Quizlet and memorize flashcards containing terms like Which of the following situations would be most likely to cause a CPA to not accept a new audit engagement?, A predecessor auditor will ordinarily initiate communication with the successor auditor: Prior to the Successor's Acceptance of the Engagement: A Yes B Yes C No D No Subsequent to the Successor's Acceptance of the Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's: a. Study with Quizlet and memorize flashcards containing terms like 1. Making inquiries of the predecessor auditor regarding management integrity. opinion of any subsequent events occurring since the predecessor's audit report was issued. Study with Quizlet and memorize flashcards containing terms like In assessing whether to accept a client for an audit engagement, a CPA should consider the:, Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should not be accepted?, Although planning continues throughout the audit, it initially involves and more. The client asks the . The entity has no formal written code of conduct. , When evaluating the sufficiency and appropriateness of audit evidence, the auditor should consider all of the following Before accepting an engagement to audit a new client, a CPA is required to obtain: a. Evaluation of all matters of continuing accounting significance. The CPA's inability to review the predecessor auditor's working papers. Enable supervisors to direct and supervise the engagement. B) ability to establish consistency Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA not to accept a new audit engagement? A. a. Who does the auditor report to and is overseen by? 2. b. The prospective client's signature to the engagement letter C. The learning outcomes include the explanation of matters that should be considered and procedures that should be followed by a firm before accepting a new client, a new engagement for an existing client, or agreeing the terms of any new engagement. An understanding of the prospective client's control environment d. c Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. , Discuss the factors an auditor should consider before accepting a company as an audit client. No No b. The compilation report should include:, When an auditor of a parent nonissuer is also the auditor of a component, then each of the following factors would ordinarily influence the decision to obtain a Before the audit firm accepts a proposed engagement to provide non-audit services to an audit client, the audit engagement partner shall: (i) consider whether a reasonable third party would regard the objectives of the proposed engagement as being inconsistent with the objectives of the audit; Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to compile or review the financial statement of a nonissuer, which of the following specific inquiries should a successor accountant consider making to the predecessor accountant? a. how cooperative was the owner's lawyer in providing legal opinion? b. Analysis of balance sheet accounts. understanding as to the reasons for the change of auditors. Study with Quizlet and memorise flashcards containing terms like What factors should an auditor consider prior to accepting an engagement? Explain, What procedures should the auditor perform for new engagements?, What is a related party? and others. -An unjustified change in accounting principles. Discuss two of these reasons. Study with Quizlet and memorize flashcards containing terms like Auditors gather information through communication with individuals internal and external to the prospective client. accept the audit engagement without any investigation not accept the audit engagement carefully assess management integrity before accepting the engagement Study with Quizlet and memorize flashcards containing terms like Successor auditors need to communicate with predecessor auditors ______ accepting the engagement, _______ auditors must ask management to authorize the predecessor auditors to discuss confidential information, If predecessor auditors refuse communication, successor auditors ________ accept the engagement and more. -If this consent is refused, the refusal should be regarded as a red fag, and the prospective auditor should be cautious about accepting the engagement. , Discuss the primary purpose of an audit engagement letter. B) obtain the prospective client's signature to the engagement letter. Management's unwillingness to make all financial records Jun 26, 2024 · Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Before accepting an engagement to audit a new client, an auditor is required to:, Which of the following statements is most accurate regarding sufficient and appropriate Study with Quizlet and memorize flashcards containing terms like Question: 1 **An auditor is required to establish an understanding with a client regarding the services to be performed for each engagement. Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's, A written understanding between the auditor and the entity concerning the auditor's responsibility for fraud is usually set forth in an, If the independent auditors decide that is is Study with Quizlet and memorize flashcards containing terms like Which of the following ultimately determines the specific audit procedures necessary to provide an independent auditor with a reasonable basis for the expression of an opinion? A. c. Before accepting an engagement to audit a new client, a CPA is required to obtain: A. d. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the: A) adequacy of the preplanned audit program. D. A preliminary understanding of the prospective client's control environment D. Yes Yes d. Which of the following is a risk factor for misappropriation of assets? (1)Generous performance-based compensation systems. Study with Quizlet and memorize flashcards containing terms like In assessing whether to accept a client for an audit engagement, a CPA should consider the Client's Business Risk CPA's Business Risk a. B) help the successor auditor to evaluate whether to accept the engagement. Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. , The risk that the Study with Quizlet and memorize flashcards containing terms like An accountant agrees to the client's request to change an engagement from a review to a compilation of financial statements. The audit plan. Management preoccupation with Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, An engagement letter is used primarily to:, Which of the following types of transactions would be routine and computerized? and more. Before accepting an engagement to compile or review the financial statement of a nonissuer, which of the following specific inquiries should a successor accountant consider making to the predecessor accountant? a. Procedures requiring separation of duties are subject to Comparing actual time spent on the engagement to engagement budgets. An understanding of the prospective client's industry and business B. awareness of the consistency in the application of generally accepted accounting principles between periods. C D) Management fails to modify prescribed controls for changes in conditions. (2)Management preoccupation with Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit?, Which of the following matters does an auditor usually include in the engagement letter? and more. Adequacy of the preplanned audit program. B Study with Quizlet and memorize flashcards containing terms like When initiating communications with predecessor auditors, prospective auditors should expect: A. The integrity of entity's management is suspect. Retaining a record of matters that may be of continuing significance in future audits. Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. No Yes, The risk that an auditor's procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. D) Management fails to modify prescribed controls for changes in conditions. Auditing standards. audit fees to be charged special expertise needed level of risk client industry, True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a) evaluation of all matters of continuing accounting significance. Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. opinion of any subsequent events occurring since the Study with Quizlet and memorize flashcards containing terms like State the 4 basic matters to be considered before accepting the audit client, Matters to be considered before accepting the audit client (1) Eg competent, Matters to be considered before accepting the audit client (2) Eg integrity and more. The client's financial ability. For an auditor of a nonissuer, this understanding generally includes** A. The CPA lacks a thorough understanding of the prospective client's operations and industry. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. Understanding the prospective client's business and the industry in which it Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to obtain A. The client's relations with its previous CPA firm. , What are the responsibilities of the successor and predecessor auditors when a company is changing auditors? and more. The prospective client's consent Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to, Before accepting an audit engagement, an auditor should make specific inquiries of the predecessor auditor regarding the predecessor's, Which of the following is correct regarding the communication between successor and predecessor auditors? and more. Study with Quizlet and memorize flashcards containing terms like Which of the following should the auditors obtain from the predecessor auditors before accepting an audit engagement? A. The prospective client's signature to the engagement letter c. A preliminary understanding of the prospective client's control environment. An understanding of the prospective client's industry and business. Analysis of income statement accounts. Reliable information to complete the engagement will be available B. The auditor's judgment. The accountant may not base the report on information obtained Study with Quizlet and memorize flashcards containing terms like Which of the following is a component of internal control? a) Control activities b) Control transparencies c) Control discrepencies d) Control anomolies, An auditor is REQUIRED to obtain a sufficient understanding of internal control to plan the engagement, under GAAS. Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's A. Inquiry of the predecessor auditor is a required pre-acceptance procedure. ) Yes, Yes, No d.
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