Before accepting an engagement to audit a new client quizlet multiple. Consultation with the appraiser in this case would A.
- Before accepting an engagement to audit a new client quizlet multiple [. An understanding of the prospective client's industry and business B. d. Multiple choice question. Discuss the management representation letter with the prospective client's audit committee. A preliminary understanding of the prospective client's control environment D. an understanding of the prospective client's industry and business b. A thorough 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 engagement to audit a new client, a CPA is required to obtain: A. B) an understanding of the prospective client's industry and business. develop an attitude of professional skepticism concerning management's financial statement assertions. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's 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. Which of the following factors most likely would cause a CPA to not accept a new audit engagement? a. Become a 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. A preliminary understanding of the prospective client's control environment. - obtain the prospective client's signature to the engagement letter D. An understanding of the prospective client's control environment d. 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 The first phase of the audit process that relates to audit planning is ______. a preliminary Study with Quizlet and memorize flashcards containing terms like Which of the following matters generally is included in an auditor's engagement letter?, A successor auditor should request the new client to authorize the predecessor auditor to allow a review of the predecessor's: Engagement letter Working papers, Each of the following identifies one of the principal purposes of an auditor's This year, Wooten Enterprises engaged a new auditor who must: a. -A listing of the client's branch offices selected for testing. audit working papers. Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan D. the predecessor's assessments of inherent risk and judgments about materiality. 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. C) Procedures requiring separation of duties are subject to 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. ]has the capabilities to perform the audit [. Before accepting an engagement to audit a new client, an auditor is required to a. , When a public company changes auditors ______. The client's financial reporting system a. The prospective client's consent 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. evaluation of all matters of continuing accounting significance. , When the prospective client has previously been audited, auditing standards require that the successor auditor make certain inquiries of the predecessor auditor before accepting the engagement. The prospective client's signature to a written engagement letter. The prospective client's consent to make inquiries of the predecessor auditor, if any. The firm will have to hire a specialist in one audit area. , With few exceptions, the Code of Professional Conduct does not allow an auditor Study with Quizlet and memorize flashcards containing terms like Which of the following would be considered an analytical procedure? Multiple Choice a. Require the client to restate its financial statements before proceeding with the audit. Before accepting an engagement to audit a new client, a CPA is required to obtain: A) an assessment of fraud risk factors likely to cause material misstatements. , 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. and When a significant event occurs. Staff will need to be rescheduled to cover this new client. Performing a search for unrecorded liabilities d. Study with Quizlet and memorize flashcards containing terms like To reduce the risk of accepting a new client, auditing standards require a prospective auditor to, When a public company changes auditors, it must, T/F: A prospective auditor must obtain information from the predecessor auditor to accept the client. -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. Before accepting an engagement to audit a new client, a CPA is required to obtain Evaluate the severity of the deficiency on the auditor's control risk assessment for that assertion. to connect interviews with the partner and manager in charge of the predecessor public accounting firm's 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. Identifying related parties, Prior to accepting a new audit engagement, a public accounting firm should a. Before accepting an engagement to audit a new client, a CPA is required to make inquiries of the predecessor auditor obtaining the consent of the prospective client obtain the prospective client's signature to the engagement letter Study with Quizlet and memorize flashcards containing terms like Materiality is based only on a quantitative analysis of the financial statements. (2) Management preoccupation Study with Quizlet and memorize flashcards containing terms like 1. , 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 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 engagement to audit a new client, a CPA is required to obtain A. Be considered a failure to follow generally accepted auditing standards because Kramer should have known how to value fine art before accepting the engagement. , During the planning stage of an audit, the auditors establish an understanding with their client as to the nature of services to be provided and the responsibilities of the ______. Testing purchasing Before accepting an engagement to audit a new client, a CPA is required to obtain a. At or near the completion of the audit. the degree of cooperation the 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. 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. b. 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. prepare Before accepting an engagement to audit a new client, an auditor is required to: a. Reporting internal control deficiencies to the audit committee c. c. The successor should specifically inquire about the predecessor's: Understanding as to the reasons for the change of auditors. 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_____. , An auditor may not accept a prospective client because the ______. an assessment of fraud risk factors likely to cause material misstatements. Is an essential part of every engagement by the CPA, whether performing auditing, tax work, or other services. , Which of the following is correct concerning requirements about auditor Before accepting an engagement to audit a new entity, an auditor is required to A. 26. Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. , True or false. 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Oct 2, 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:, When applying analytical procedures during an audit, which of the following is the best 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. , When an auditor is asked to accept a new client, ______. preliminary engagement activities planning the audit client acceptance and continuance, Before accepting a new client, a public accounting firm must determine if it ______. , The risk of loss or injury to the auditors' reputation by association with a client 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. A successor auditor ordinarily should request to review the predecessors audit documentation relating to contingencies and internal control. 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. d) Completely detailed audit plan. There will be a client-imposed scope limitation. prepare a memorandum setting forth the staffing requirements and documenting the preliminary Study with Quizlet and memorize flashcards containing terms like The first phase of audit planning is risk assessment. Study with Quizlet and memorize flashcards containing terms like 3. Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. 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The prospective client's signature to the representation letter. , The Code of Professional Conduct does not allow an auditor to disclose This year, Blakeney Enterprise engaged a new auditor who must: (A) attempt to communicate with the predecessor auditor before accepting the engagement. opinion of any subsequent events occurring since 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 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 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. the predecessor's evaluation of matters of continuing accounting significance. Attempt to contact the predecessor auditors b. obtain the prospective client's signature to the engagement letter c. The prospective client's consent to make inquiries of the predecessor auditor. B) obtain the prospective client's signature to the engagement letter. When the prospective client has previously been audited, auditing standards require that the successor auditor make certain inquiries of the predecessor auditor before accepting the engagement. false, Auditors are expected to contact the prior year's auditor, but before doing so are required to obtain management's permission. , During the second stage of the audit process, auditors must obtain an understanding 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, 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 The auditors' understanding established with a client should be confirmed through a(an): a) Oral communication with the client. , Before accepting an engagement to audit a new client, a CPA is required to obtain A. , Risk management activities are undertaken Blank______. Requires a complete review of all transactions during the period under Before accepting an engagement to audit a new entity, an auditor is required to: make inquiries of the predecessor auditor. An assessment of fraud risk factors likely to cause material misstatements. Ask the client to arrange a meeting of the predecessor auditor, management, and the successor auditor to discuss the matter. understanding as to the reasons for the change of auditors. B) The integrity of entity's management is suspect. D) Management fails to modify prescribed controls for changes in conditions. B To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's engagement Study with Quizlet and memorize flashcards containing terms like A public accounting firm that has been terminated or has voluntarily withdrawn from an audit engagement is known as the:, With respect to a predecessor auditor, a perspective auditor ______. 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, a CPA is required to obtain A. (C) seek the SEC's permission to accept the engagement if Blakeney is publicly owned. true b. only obligated to provide services for clients the firm has audited in the past obligated to provide services for any 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 1. Reconciling physical counts to perpetual records and general ledger balances. the prospective client's Study with Quizlet and memorize flashcards containing terms like Which of the following will most likely indicate the existence of related parties? 1) writing down obsolete inventory prior to year end 2) failing to correct deficiencies in the client's internal control 3) an unexplained increase in gross margin 4) borrowing money at a rate significantly below the market rate, Which of the . attempt to communicate with the predecessor auditor before accepting the engagement. The prospective client's opinion on the work ethics of the predecessor auditor. A successor auditor should request the new client to authorize the predecessor auditor to allow a review of the predecessor's: a. and more. B) the prospective client's signature on the engagement letter. When a new client is accepted or when an audit engagement continues from year to year, an engagement letter should be prepared. , 1. , When auditing a company with multiple locations, the amount of audit attention devoted to various Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new entity, an auditor is required to? A. Explore quizzes and practice tests created by teachers and students or create one from your course material. - make inquiries of the predecessor auditor after obtaining the consent of the prospective client. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to a. 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 3. review the client's financial information before accepting the engagement If an entity has not previously been audited, the prospective auditor should ______. Awareness of the consistency in the application of generally accepted accounting principles between periods. Consultation with the appraiser in this case would A. Not be considered a violation of generally accepted auditing standards because generally accepted auditing standards does not apply to not-for-profit entities. Prior to accepting the engagement, the firm must 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. 21. the CPA is unable to review the predecessor auditor's working papers due to a major fire that destroyed both hard and soft copy documentation d Which of the following should not normally be included in the engagement letter for an audit?-A description of the responsibilities of client personnel to provide assistance. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. obtain the prospective client's signature on the engagement letter. seek the SEC's permission to accept the engagement if Wooten is publicly owned. the prospective client's signature on the engagement letter c. B) The prospective client's signature to the representation letter. 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 prospective client's signature on the engagement letter. Which of the following is true about appointing the external auditor after year-end? Quiz yourself with questions and answers for Audit - Quiz 2, so you can be ready for test day. 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 Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's a. Comparing inventory balances to recent sales activities. make inquiries of the predecessor auditor after obtaining the consent of the prospective client b. Which of the following is a risk factor for misappropriation of assets? (1) Generous performance-based compensation systems. to take responsibility for obtaining the client's consent for the predecessor to give information about prior audits b. A preliminary understanding of the prospective client's industry and business b. Make inquiries of the predecessor auditor B. tell the company whether or not the auditor is willing to issue a "clean" opinion. a. B. 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. obtain the prospective client's signature to the engagement letter. the prospective client's signature to a written engagement letter. The prospective client's consent to Study with Quizlet and memorize flashcards containing terms like 1. 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. C) a preliminary understanding of the prospective client's control environment. 27 When initiating communications with predecessor auditors, prospective auditors should expect: a. With few exceptions, the Code of Professional Conduct does not allow an auditor to disclose confidential client information 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. Management fails to modify prescribed controls for changes in conditions. had considered Study with Quizlet and memorize flashcards containing terms like The audit planning process should begin with the pre-engagement activities of client _________ and continuance. The prospective client's signature to the engagement letter C. an understanding of the prospective client's industry and business. ) not be considered a Professional standards require auditors to reach a mutual understanding with clients concerning engagement requirements and expectations and to document this understanding, usually in the form of a written letter. , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. An understanding of the prospective client's industry and business. , 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. , Before accepting an engagement to audit a new client, an auditor is required to A. at the conclusion of the audit engagement before issuing the audit report before beginning any audit engagement only during the audit 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 awareness of the consistency in the application of generally accepted accounting principles between periods. 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 1. C. Make inquiries of the predecessor auditor. b) Written communication with the client. the CPA lacks a thorough understanding of the prospective client's operations and industry c. discuss the management representation letter with the prospective client's audit committee. make inquiries of the predecessor auditor after obtaining the consent of the prospective client. D. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's 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 Kramer, CPA, consulted an independent appraiser regarding the valuation of fine art for a not-for-profit museum. C Before accepting an engagement to audit a new client, a CPA is required to obtain A. The attest function: A. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding a. A successor auditor should always make inquiries of the predecessor auditor before accepting an audit engagement. -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 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. reject the 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. The prospective client's signature to the engagement letter c. Before accepting an engagement to audit a new client, an auditor is required to: A. There are 2 steps to solve this one. Study with Quizlet and memorize flashcards containing terms like This year, Wooten Enterprises engaged a new auditor who must:, Which of the following communications is most likely to be written before the balance-sheet date?, Which of the following is not a benefit claimed for the practice of determining materiality in the initial planning stage of an audit? and more. opinion of any subsequent events occurring since the C. Study with Quizlet and memorize flashcards containing terms like When initiating communications with predecessor auditors, prospective auditors should expect A To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. Requires a consideration of internal control. When a successor auditor is offered an auditing engagement, the successor auditor _____. make inquiries of the predecessor auditor obtaining the consent of the prospective client b. Study with Quizlet and memorize flashcards containing terms like The probability that the firm could issue a clean, unmodified opinion when in fact a modified opinion should have been issued is referred to as___, Public accounting firms are ______. , The Code of Professional Conduct does not allow an auditor to disclose Study with Quizlet and memorize flashcards containing terms like Materiality depends on the _____ and the _____ of the item, During the planning stage of an audit, the auditors establish an understanding with their client as to the nature of services to be provided and the responsibilities of the ______. Advise the client to inform its audit committee of the possible misstatement. All matters of continuing accounting significance. Facts that might bear on management integrity. make constructive suggestions concerning improvements to the client's internal control. The prospective client's opinion on the fairness of the financial Before accepting an engagement to audit a new client, an auditor is required to When assessing the risks of material misstatement at a low level, an auditor is required to document the auditor's 8 of 201 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. ) Which of the following auditor concerns most likely could be so serious that the auditor wouldconclude that a financial statement audit cannot be conducted?A) The entity has no formal written code of conduct. Projecting the deviation rate of a statistical sample to the population. Tell the company whether or not the auditor is willing to issue a "clean" opinion. , 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 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. it would not be typical to allow a review of either the engagement letter or the audit working papers. c) Written or oral communication with the client. ]. Evaluation of all matters of continuing accounting significance. ↦ The correct answer is (d) the prospective client's consent to make inquiries of the predecessor, if Not the question you’re looking for? Post any question and get expert help quickly. evaluate whether the aggregation of known 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 Before accepting an engagement to audit a new client, a CPA is required to obtain: a. review the predecessor's audit documentation if the audit is to be in accordance with GAAS. Surprise counts of the client's petty cash fund b. ) be considered as exercising proper due care B. Tell the company whether or not the auditor is willing to issue a "clean" opinion C. had considered the integrity of the client's predecessor auditor has the 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 consent to make inquiries 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. prepare a memorandum setting forth the staffing requirements and documenting the 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. ljqg gefdb ojhk dbu lellr lqld udodwii vwfbs prktml baamt trkwwhs ajb wutyom cbh bggym