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Cards In This Set
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In the audit of historical financial statemetns by public accounting firms, the criteria used are
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Generally accepted accounting principles
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Because an external auditor is paid a fee by a client company, he or she
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May be sufficiently independent to conduct an audit
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The disadvantage of general statements in codes of professional conduct is
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The difficulty of enforcing general ideals without minimum standards of behaviour
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The provincial institutes rules of professional conduct state, in part, that a public accountant should maintain integrity and due care. integrity in the rules refers to a public accountant's
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Reputation for honesty and fair dealing
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If a misstatement is immaterial relative to the financial statements of the entity for the current period and is not expected to have a material effect in future periods, it is appropriate to issue
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An unqualified opinion
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The appropriate date for the audit report is the one on which the
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Auditor has substantially concluded procedures in the field
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A public accountant is subject to criminal liability if the public accountant
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Wilfully omits a material fact required to be stated in a financial statement
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When the auditor issues an erroneous opinion as the result of an underlying failure to comply with the requirements of generally accepted auditing standards, it results in
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Audit failure
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The responbility for adopting sound accounting policies, maintaining adequate internal controls, and making fair representations of teh financial statements rests
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With management
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The auditors evaluations of the likelihood of material employee fraud is normally done initially as a part of
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Understanding the entity's internal controls
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Evidence is generally considered appropriate when
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It has the qualities of being relevant, objective, and free from known bias
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Evidence is usually more persuasive for balance sheet accounts when it is obtained
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As close to the balance sheet date as possible
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When the auditor decides that lower audit risk on an audit is appropriate, then
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The engagement may require more experienced staff
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Independence threat analysis is an important part of the engagement acceptance or continuance process. if the auditor identifies an independence threat, then, before accepting the engagement, the auditor must
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Determine whether it is possible to institute safeguards to mitigate the threat
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The scope paragraph in auditors reports includes two important phrases that are directly related to materiality and risk. the phrases are
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"obtainin reasonable assurance" and "free of all material misstatements"
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