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AUDIT A2
Engagement Quality and Acceptance, Planning and Internal Control
| Term | Definition |
|---|---|
| Nonissuer Audit Documentation Retention Requirements | Retained for a period of 5 years from the REPORT RELEASE DATE |
| Acceptable reasons for a change in engagement | Change in client requirements or misunderstanding as to the nature of the service to be rendered |
| Unacceptable reasons for a change in engagement | The engagement would uncover errors or fraud or the client is attempting to create misleading or deceptive F.S. |
| Components of a System of Quality Management | R - Resources E - Engagement Performance A - The Firm's Risk Assessment Process L - Leadership M - Monitoring I - Info and Communication C - Continuance and Acceptance E - Ethics |
| Can a peer review be used as a substitute for an engagement inspection? | Yes if performed in accordance with AICPA standards |
| Quality Control Framework for Issuers | 1.) Independence, Integrity and Objectivity 2.) Personnel Management 3.) Acceptance and Continuance 4.) Engagement Performance 5.) Monitoring |
| Documentation Retention for Nonissuers | 5 Years from report release date |
| Documentation Retention for Issuers | 7 years from the report release date |
| Documentation Completion Date Nonissuers | 60 days following the report release date |
| Documentation Completion Date Issuers | 14 days following the report release date |
| Entity Objectives | 1.) Reliability of Financial Reporting 2.) Effectiveness and efficiency of operations 3.) Compliance with Laws and Regulations |
| COSO Internal Control Components | C - Control Environment R - Risk Assessment I - Information and Communication M - Monitoring Activities E - Existing Control Activities |
| Control Environment | E - Ethics/Integrity B - Board Independence O - Org Structure C - Competence Commitment A - Accountability |
| Risk Assessment | S - Specify Objectives A - Assess & Identify Changes F - Fraud Potential Considerations R - Risk Identification and Analysis |
| Information and Communication | O - Obtain and Use Info I - Internally Communicate E - Externally Communicate |
| Monitoring Activities | S - Separate and O - Ongoing Evaluations D - Deficiency Communication |
| Existing Control Activities | C - Control A - Activities T - Tech Controls P - Policies and Procedures |
| Control Activities in a Strong I/C System | P - Prenumbering of Docs A - Authorization of Transactions I - Independent Checks D - Documentation T - Timely and Appropriate Financial Performance reviews I - Information Processing Controls P - Physical Controls S - Segregation of Duties (ARC) |
| Audit Risk Model | Audit Risk = Inherent Risk x Control Risk x Detection Risk OR DR = Audit Risk / Inherent Risk x Control Risk |
| Quality Control HELP ME | H - Human Resources E - Engagement Acceptance & Continuance L - Leadership Responsibilities P - Performance of the Engagement M - Monitoring E - Ethical Requirements |
| IA Cannot | Help with Assessments, Materiality and Estimating Accounts |
| Is a copy of applicable law or regulation or portion therof violated when noncompliance is identified included in audit documentation | No |
| Description of an auditor's concern in regard to ICFR | design, implementation, and maintenance of the entity's internal control that is relevant to the preparation and fair presentation of F.S. that are free from MMS, whether due to error or fraud |
| Can you perform a portion of the audit of a continuing client at interim? | Yes. Initial engagements cannot be performed as interim dates |
Created by:
amabwalt