Matters to consider before accepting an engagement quizlet

Matters to consider before accepting an engagement quizlet. c 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. A representation letter from the prospective client Study with Quizlet and memorize flashcards containing terms like Which of the following is the most likely first step the auditors would perform at the beginning of an initial audit engagement? Tour the client's facilities and review the general records. The prospective client's signature to the engagement letter C. , To emphasize auditor Study with Quizlet and memorize flashcards containing terms like How to use analytical procedures when reviewing interim financial information, Lack of bank reconciliation - recommendation and consequence, What should audit firm consider before accepting engagement? and more. 4. inherent risk and detection risk. The CPA's inability to review the predecessor auditor's working papers. 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. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the A. Sep 30, 2020 · Every Audit firms must ensure that all the above procedures have been complied with before accepting the audit engagement to mitigate the audit risk at certain level. Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. 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. Study with Quizlet and memorise flashcards containing terms like what methods may an assurance firm obtain an engagement?, what is a tender process?, what are the other important things considered in the tender process (by the client)? and others. 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 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:, Hill, CPA, has been retained to audit the financial statements of Monday Co. d. 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 c. Inquiry of the predecessor auditor is a required pre-acceptance procedure. 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. Yes No c. -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. awareness of the consistency in the application of GAAP between periods b. Which of the following matters do the auditor and management agree upon at this time?, Which of the following is required before accepting a new audit engagement? 1) Making inquiries of the predecessor auditor Study with Quizlet and memorize flashcards containing terms like as part of the pre-acceptance phase of the engagement, the auditor should consider and document compliance with the firm's quality control policies and procedures related to client acceptance and continuance. C. -A justified change in accounting estimate. No No b. 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. Before accepting such an engagement, the audit firm should consider: the intended use of the information. The prospective client’s consent to make inquiries of the predecessor auditor. 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 ______. 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. (3) Correspondence with the audit client’s attorney will reveal all legal action by vendors for nonpayment. Staff will need to be rescheduled to cover this new client. Explore quizzes and practice tests created by teachers and students or create one from your course material. , Discuss the primary purpose of an audit engagement letter. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. An understanding of the prospective client's control environment d. Study with Quizlet and memorize flashcards containing terms like What if the successor believes that the financial statements covered by the predecessor's report require revision?, What if the auditor is unable to observe the beginning inventory?, Preconditions for an Audit and more. evaluation of all matters of continuing accounting significance. opinion of any subsequent events occurring since the predecessor's audit report was issued. II. ) Yes, No, No b. a. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the: A) adequacy of the preplanned audit program. communicate with the predecessor auditor about whether there were an disagreements accounting principles, audit procedures or similar significant matters. Monday's predecessor auditor was Post, CPA, who has been notified by Monday that Post's services have been 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. Understanding the prospective client's business and the industry in which it 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. An understanding of the prospective client's industry and business B. Retaining a record of matters that may be of continuing significance in future audits. Matters to consider before accepting an engagement to report on prospective financial information. , When evaluating the sufficiency and appropriateness of audit evidence, the auditor should consider all of the following Quiz yourself with questions and answers for Audit HW 3: Chapter 3: Audit Planning, Types of Audit Tests, and Materiality , so you can be ready for test day. Before accepting an engagement to audit a new client, a CPA is required to obtain: A. The accountant should obtain a written management representation letter. Yes Yes d. b. , 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. B 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. Awareness of the consistency in the application of generally accepted accounting principles between periods. requirements of an audit, and other services required by client (close expectations gap) 3. C) Procedures requiring separation of duties are subject to Study with Quizlet and memorize flashcards containing terms like Audit Committee, "those charged with governance", Acceptance of engagement near or after year-end and more. C) help the client by facilitating the change of auditors Study with Quizlet and memorize flashcards containing terms like How to use analytical procedures when reviewing interim financial information, Lack of bank reconciliation - recommendation and consequence, What should audit firm consider before accepting engagement? and more. 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. 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. how cooperative was the owner's lawyer in providing legal opinion? b. c. Procedures requiring separation of duties are subject to Before accepting an engagement to audit a new client, a CPA is required to obtain a. Employing strong client acceptance procedures — the process by which a prospective client is evaluated before undertaking any services. Management's unwillingness to make all financial records 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. The entity has no formal written code of conduct. Lake's financial statements are prepared in conformity with the cash basis of accounting. If Lake's Study with Quizlet and memorize flashcards containing terms like 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 separate engagement letter from the component, except, An auditor is required to establish an understanding in writing with a client regarding the services to be 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. The client's relations with its previous CPA firm. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. 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 When initiating communications with predecessor auditors, prospective auditors should expect: A. 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. Enable supervisors to direct and supervise the engagement. Adequacy of the preplanned audit program. The prospective client's signature to the engagement letter c. Study with Quizlet and memorize flashcards containing terms like Which of the following statements is correct concerning both an engagement to compile and an engagement to review a nonissuer's financial statements? A. Evaluation of all matters of continuing accounting significance c Study with Quizlet and memorize flashcards containing terms like ISAs relevant to pre-engagent, What does ISA 210 prohibit an auditor from doing?, What are the pre conditions set out by para 6(b)? and more. awareness of the consistency in the application of generally accepted accounting principles between periods. C 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 ISQC 1 Elements of a firms quality control system, Leadership should encourage what to ensure quality?, ISQC list of aspects HR should consider with staff and more. The client's financial ability. Awareness of the consistency in the application of generally accepted accounting principles between periods b. ) No, No, Yes c. 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. A preliminary understanding of the prospective client's control environment D. 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. selling points of the firm (experience, personnel etc) Study with Quizlet and memorize flashcards containing terms like The objective of a review of interim financial information (IFI) of a nonissuer is to provide an auditor with a basis for reporting whether, West, CPA, is engaged to compile the financial statements of Lake Co. A representation letter from the prospective client In the audit risk model, audit sampling applies to: a. 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_____. Study with Quizlet and memorize flashcards containing terms like Predecessor auditor responsibilities under GAAS, Can predecessor disclose confidential client information, difference between SQCS and GAAS and more. Used the information in a general ledger to prepare financial statements outside of an accounting software system. The auditor's responsibility for determining the preliminary judgments about materiality and audit risk factors. opinion of any subsequent events occurring since the 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 steps should an auditor perform first to determine the existence of Study with Quizlet and memorize flashcards containing terms like Who does the auditor report to and who is he overseen by?, What must the auditor perform if the client is an issuer?, What should auditor consider before accepting engagement? and more. B 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. Making inquiries of the predecessor auditor regarding management integrity. 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. 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. 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. Study with Quizlet and memorize flashcards containing terms like There are three main reasons why an auditor should properly plan audit engagements. control risk and detection risk. The accountant expresses no assurance on the financial statements. detection risk. It states that fees should be determined with reference to: and more. opinion of any subsequent events 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 Comparing actual time spent on the engagement to engagement budgets. inherent risk and control risk Which of the following is required before accepting a new audit engagement? I. Management preoccupation with Study with Quizlet and memorize flashcards containing terms like 14. B) help the successor auditor to evaluate whether to accept the engagement. B) The integrity of entity's management is suspect. how did you assess inherent risk and control Study with Quizlet and memorize flashcards containing terms like How can we get new appointments?, What should be considered when advertising ?, A firm may describe itself as a firm of chartered certified accountants if: and more. The client's standing in the business community. ) No, Yes, Yes, Which of the Study with Quizlet and memorize flashcards containing terms like 1. awareness 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. 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 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. 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. The client's financial reporting system 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) The entity has no formal written code of conduct. True or False, An auditor may reduce the amount of Study with Quizlet and memorize 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 more. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. Management reputation for failing to provide schedules to prior auditors on a timely basis. Making inquiries of the predecessor auditor regarding matters that may affect the conduct of the audit. The accountant need not obtain an Study with Quizlet and memorize flashcards containing terms like what should a successor auditor ask the predecessor auditor to provide after accepting an audit engagement? before accepting an audit engagement?, if the predecessor auditor refuses to give the current auditor of a nonissuer access to the documentation, what should the current auditor do?, in assessing the objectivity of internal 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. Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT a required expert witness disclosure for witnesses testifying in US Federal courts?, Prior to accepting a litigation-related engagement, the forensic accountant should consider whether they or their firm is professionally competent, objective and free of conflicts of interest with respect to the 1. Required: *The objective and scope of the audit *The responsibilities of the auditor *The responsibilities of management *A statement that because of the inherent limitations of an audit some misstatement may not be detected *Identification of the applicable financial reporting framework *Reference to the expected form and content of any reports Other: *Elaboration of the scope *The form of . The accountant may not base the report on information obtained 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. A preliminary understanding of the prospective client's industry and business b. evaluation of all matters of continuing accounting significance c Study with Quizlet and memorize flashcards containing terms like what methods may an assurance firm obtain an engagement?, what is a tender process?, what are the other important things considered in the tender process (by the client)? and more. 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. , Discuss the factors an auditor should consider before accepting a company as an audit client. The accountant may not base the report on information obtained Study with Quizlet and memorize flashcards containing terms like ISAs relevant to pre-engagent, What does ISA 210 prohibit an auditor from doing?, What are the pre conditions set out by para 6(b)? and more. how did you assess inherent risk and 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. III. Discuss two of these reasons. how did you assess inherent risk and control 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. c 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 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 prospective client's consent 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; Before accepting an engagement to audit a new client, a CPA is required to obtain a. Prepare a rough draft of the financial statements and of the auditors' report. For an auditor of a nonissuer, this understanding generally includes** A. Does this generally apply to public or private companies?, 1. B Evaluation of all matters of continuing accounting significance. . Who does the auditor report to and is overseen by? 2. There will be a client-imposed scope limitation. B) obtain the prospective client's signature to the engagement letter. 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. While client acceptance is no crystal ball, sound client acceptance procedures can help CPA firms identify potential problem clients before they cause trouble. 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. The firm will have to hire a specialist in one audit area. Provided a client with a financial statement format that does not 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. Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. The client's probability of achieving an unqualified opinion. amounts and basis of fee 2. 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 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. B. 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. ) Yes, Yes, No d. Study with Quizlet and memorize flashcards containing terms like An assurance firm may obtain an engagement by:, Clients will have to consider the following during tenders, The Code of Ethics suggests that the basis for fee computation should be disclosed to and discussed with the client as soon as possible. Determine if the firm is independent of Study with Quizlet and memorize flashcards containing terms like Prior to commencing fieldwork, an auditor usually discusses the general audit strategy with the client's management. What does D) Management fails to modify prescribed controls for changes in conditions. 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. 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 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) ability to establish consistency 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. Specifically the auditor should assess the following:, preconditions for an audit, engagement letter should include and more. This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. understanding as to the reasons for the change of auditors. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's -The audit client must grant its approval before the communication can occur between the prospective auditor and the predecessor auditor. Evaluation of all matters of continuing accounting significance. All of the other replies are incorrect because they represent information that the successor may wish to obtain after accepting the engagement. Consult with and review the work of the predecessor auditors (2) Accounts payable balance at the balance sheet date may not be paid before the audit is completed. Study with Quizlet and memorize flashcards containing terms like what things should be considered prior to the engagement?, what are the two methods for obtaining an engagement?, factors to consider before accepting the engagement? and more. Ability to establish If an entity has not previously been audited, the prospective auditor should _____. -An unjustified change in accounting principles. Before accepting an engagement the possible successor should ask questions about the integrity of management, disagreements with management, and the reasons for the change in auditors. Multiple choice question. 3. awareness of the consistency in the application of generally accepted accounting principles between periods b. Study with Quizlet and memorize flashcards containing terms like Engagement Letters include all of the following except, Which of the following is not an audit procedure that is commonly used in performing tests of controls?, Although planning continues throughout the audit, it initially involves and more. The integrity of entity's management is suspect. Which of the following is required before accepting a new audit engagement? I. consider whether the prospective client has any circumstances that will require special attention or that may represent unusual or audit risks 5. 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 nonissuer. oodc tswzqke jyjhfk lcsdn elb yrtg ptlpvyq jhidcau avlk xjuvcp