Posts
Before accepting an engagement to audit a new client quizlet multiple qui
Before accepting an engagement to audit a new client quizlet multiple qui. A preliminary understanding of the prospective client's control environment. , When auditing a company with multiple locations, the amount of audit attention devoted to various Study with Quizlet and memorize flashcards containing terms like The audit planning process should begin with the pre-engagement activities of client _________ and continuance. Before accepting an engagement to audit a new client that has previously been audited by another CPA firm, a CPA is required to obtain a) An assessment of fraud risk factors likely to cause material misstatements. , When an auditor is asked to accept a new client, ______. an understanding of the prospective client's industry and business. A representation letter from the prospective client 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. An indication of the amount of the audit fee. Study with Quizlet and memorize flashcards containing terms like True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, The Scope and nature of an auditors contactual obligation to a client is ordinarily set forth in the:, Which of the following statements would least likely appear in an auditors engagement letter? and more. 27 When initiating communications with predecessor auditors, prospective auditors should expect a. the prospective client's consent to make inquiries Study with Quizlet and memorize flashcards containing terms like Considered before accepting new client, Three Preliminary engagement activities, Determine the Audit Engagement Team Requirements (factors) and more. reject the Study with Quizlet and memorize flashcards containing terms like While clients are very particular about which auditor they will select, auditors are willing to accept any client due to the financial benefits they receive. B1: Rules issued under the SOX Act of 2002 restricted former members of an audit engagement team from accepting employment as a CEO,CFO or CAO or controller of an audit client that files reports with the SEC. Before accepting an engagement to audit a new client, an auditor is required to: - discuss the management representation letter with the prospective client's audit committee. The prospective client's opinion on the work ethics of the predecessor auditor. The prospective client's signature to the engagement letter c. seek the SEC's permission to accept the engagement if Wooten is publicly owned. Relevant to ACCA Qualification Paper P7 The syllabus for Paper P7, Advanced Audit and Assurance includes Professional Appointments (syllabus reference C4). , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. ) not be considered a violation of generally accepted auditing standards because generally accepted auditing standards does not apply to not-for-profit entities D. prepare the prospective client's signature to a written engagement letter. ]. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. ) none of the above 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. c. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's 1 day ago · 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 a(n), If the independent auditors decide that it is Study with Quizlet and memorize flashcards containing terms like An auditor obtains knowledge about a new client's business and its industry in order to: a. , The term predecessor auditor refers to the public accounting firm that _____. b. B) Evaluation of all matters of continuing accounting significance. D) financial risk. d. B. 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. 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 Management has a reputation for consulting with several accounting firms about significant accounting issues, Before accepting an engagement to audit a new client, a CPA is required to obtain: a. Prior to accepting the engagement, the firm must 3 days ago · The covered member resigned on January 17, 20X3 from the board of directors of the client, prior to accepting the new audit engagement. obtain the prospective client's signature to the engagement letter. . C. , Auditors are responsible to ensure that management accepts its responsibility for the preparation of the financial statements before accepting an audit engagement Study with Quizlet and memorize flashcards containing terms like An auditor's engagement letter most likely will include a) Managements Acknowledgement of its responsibility for maintaining effective internal control b) The auditors preliminary assessment of the risk factors relating to misstatements arising from fraudulent financial reporting c) A request for permission to contact the client Study with Quizlet and memorize flashcards containing terms like Risk management activities are undertaken _____. discuss the management representation letter with the prospective client's audit committee. 3 days ago · Before accepting an engagement to audit a new client, an auditor is required to: a. Study with Quizlet and memorize flashcards containing terms like Before accepting a new client, a public accounting firm must determine if it, True or false: An auditor obtains an understanding of the client and its environment to identify audit risks that may result in material misstatements. an understanding of the prospective client's industry and business b. An assessment of fraud risk factors likely to cause material misstatements. The prospective client's consent 3 days ago · 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. The prospective client's signature to a written engagement letter. 3 days ago · When a successor auditor is offered an auditing engagement, the successor auditor _____. A listing of the client's branch offices selected D. Before accepting an engagement to audit a new client, a CPA is required to obtain: a. An understanding of the prospective client's control environment d. The prospective client's consent to make inquiries of the predecessor auditor. Awareness of the consistency in the application of generally accepted accounting principles between periods. at the conclusion of the audit engagement before issuing the audit report before beginning any audit engagement only during the audit 3 days ago · This year, Wooten Enterprises engaged a new auditor who must: a. Study with Quizlet and memorize flashcards containing terms like Auditor's responsibilities before accepting new audit engagement?, engagement letter, what would cause an auditor to not accept a new engagement? and more. review the predecessor's audit documentation if the audit is to be in accordance with GAAS. 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 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. An understanding of the prospective client's industry and business B. C) a preliminary understanding of the prospective client's control environment. (2) Management preoccupation 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 When initiating communications with predecessor auditors, prospective auditors should expect: A. The client's probability of achieving an unqualified opinion. - make inquiries of the predecessor auditor after obtaining the consent of the prospective client. The prospective client's consent to Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. 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 ______. C) statistical risk. The attest function: A. A preliminary understanding of the prospective client's industry and business b. Study with Quizlet and memorize flashcards containing terms like 3. attempt to communicate with the predecessor auditor before accepting the engagement. Study with Quizlet and memorize flashcards containing terms like The stages of the financial statement audit, Acceptance & Continuance stage, First step - assess client integrity and more. The prospective client’s consent to make inquiries of the predecessor auditor. , A measure of the auditor's assessment of the likelihood Lerne mit Quizlet und merke dir Karteikarten mit Begriffen wie What are the two preconditions for an audit?, Audit __ __ need to be documented in writing so that they can be referred back to, What 6 things must be covered in the engagement letter? und mehr. , Before accepting an engagement to audit a new client, a CPA is required to obtain A. the prospective client's signature on the engagement letter c. a preliminary 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 the financial statement audit cannot be conducted, before accepting an engagement to audit a new client, an auditor is required to, which of the following steps should an auditor perform first to determine the existence of Before accepting an engagement to audit a new client, a CPA is required to obtain a. Inquiry of the predecessor auditor is a required pre-acceptance procedure. The covered member continues to hold an immaterial indirect financial interest in the client. The client's financial ability. - obtain the prospective client's signature to the engagement letter 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. B) the prospective client's signature on the engagement letter. , Before accepting an engagement to audit a new client, a CPA is required to obtain:, The audit client's board of directors and audit committee refused to take any action with respect to an immaterial illegal act which was brought to their attention 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 is a correct statement regarding the nature and timing of communications between an accounting firm performing an initial audit of an issuer and the issuer's audit committee? A. , 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. The client's standing in the business community. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. Requires a complete review of all transactions during the period under Study with Quizlet and memorize flashcards containing terms like What is the first stage of any audit?, What factors do we consider for client acceptance or continuance decisions?, If your firm has a new client, what must be done before accepting the engagement? and more. B) acceptable audit risk. ]has the capabilities to perform the audit [. An understanding of the prospective client's industry and business. The client's relations with its previous CPA firm. Before accepting an engagement to audit a new client, an auditor is required to: make inquiries of the predecessor auditor after obtaining the consent of the prospective client. Multiple choice question. the prospective client's consent to make inquiries of the predecessor, if any. Management fails to modify prescribed controls for changes in conditions. D. ) be considered failure to follow generally accepted auditing standards because Kramer should have known how to value fine art before accepting the engagement C. B) obtain the prospective client's signature to the engagement letter. [. Management preoccupation with D) Management fails to modify prescribed controls for changes in conditions. Evaluation of all matters of continuing accounting significance. Study with Quizlet and memorize flashcards containing terms like Materiality is based only on a quantitative analysis of the financial statements. , Before accepting an engagement to audit a new client, an auditor is required to A. There are 2 steps to solve this one. Which of the following is a risk factor for misappropriation of assets? (1) Generous performance-based compensation systems. Before accepting an engagement to audit a new client, a CPA is required to obtain: A. Require the client to restate its financial statements before proceeding with the audit. and more. The client's financial reporting system Before accepting an engagement to audit a new client, a CPA is required to obtain: A) an understanding of the prospective client's industry and business. Ask the client to arrange a meeting of the predecessor auditor, management, and the successor auditor to discuss the matter. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's B. make constructive suggestions concerning improvements to the client's internal control. evaluate whether the aggregation of known 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. make inquiries of the predecessor auditor after obtaining the consent of the prospective client. , An auditor may not accept a prospective client because the ______. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the:, In assessing whether to accept a client for an audit engagement, a CPA should Study with Quizlet and memorize flashcards containing terms like A common rule of thumb in practice is to use (blank) % of income before taxes as a materiality benchmark. 3 days ago · Before accepting an engagement to audit a new client, an auditor is required to Make inquiries of the predecessor auditor after obtaining the consent of the prospective client. Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit? Before accepting an engagement to audit a new client, an auditor is required to: make inquiries of the predecessor auditor after obtaining the consent of the prospective client. A description of the responsibilities of client personnel to provide assistance. C) Q. C 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. , Risk management activities are undertaken Blank______. preliminary engagement activities client acceptance and continuance planning the audit, Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank_____. D) Management fails to modify prescribed controls for changes in conditions. , Before accepting a new client, a public accounting firm must determine if it (blank), When a public accounting firm is asked to accept a new client, and more. The prospective client's signature to the engagement letter C. The firm will have to hire a specialist in one audit area. There will be a client-imposed scope limitation. Facts that might bear on management integrity. Before accepting an engagement to audit a new client, a CPA is required to obtain An assessment of fraud risk factors likely to cause material misstatements. Advise the client to inform its audit committee of the possible misstatement. All matters of continuing accounting significance. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor’s: A) Awareness of the consistency in the application of accounting principles between periods. A description of the limitations of an audit. Ordinarily, the predecessor auditor permits the auditor to review the predecessor's audit documentation relating to Before accepting an engagement to audit a new client, a CPA is required to obtain: an assessment of fraud risk factors likely to cause material misstatements. Study with Quizlet and memorize flashcards containing terms like Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement? a. the prospective client's signature to a written engagement letter. , Public accounting firms are _____. , 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. Study with Quizlet and memorize flashcards containing terms like The process of working from financial statement figures back to detailed documents most directly addresses the financial statement assertion of:, According to the professional standards, auditors may document the understanding established with an audit client through a(n) Written communication with the clientOral Communication Study with Quizlet and memorize flashcards containing terms like A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the: A) inherent risk. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to obtain: An assessment of fraud risk factors likely to cause material misstatements. had considered D. -must obtain the client's consent before discussing confidential information with the predecessor auditor-is granted permission to contact the predecessor auditor by default-is prohibited from accepting the engagement if communication with the predecessor auditor is denied by management Study with Quizlet and memorize flashcards containing terms like True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. A preliminary understanding of the prospective client's control environment D. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. Requires a consideration of internal control. 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 prospective client's signature to the representation letter. The prospective client's opinion on the fairness of the financial Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's: Choose matching definition awareness of the consistency in the application of generally accepted accounting principles between periods. Includes the preparation of a report of the CPA's findings. develop an attitude of professional skepticism concerning management's financial statement assertions. , To emphasize auditor Study with Quizlet and memorize flashcards containing terms like 1. Is an essential part of every engagement by the CPA, whether performing auditing, tax work, or other services. b) An understanding of the prospective client’s industry and business. Staff will need to be rescheduled to cover this new client. Before accepting an engagement to audit a new client, a CPA is required to obtain A. 3 days ago · Study with Quizlet and memorize flashcards containing terms like Which of the following should not normally be included in the engagement letter for an audit? a.