Audit & Attestation Services Flashcards
7 cards from real ABA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Audit & Attestation Services flashcards as text
Which standard governs attestation engagements performed by CPAs in the United States?
Answer: SSAE (Statements on Standards for Attestation Engagements)
Attestation engagements are governed by the Statements on Standards for Attestation Engagements (SSAE) issued by the AICPA.
When evaluating going concern, the auditor's assessment period is typically:
Answer: One year from the balance sheet date
Auditors evaluate whether substantial doubt exists about an entity's ability to continue as a going concern for one year after the financial statement date.
Which sampling approach is used to estimate the total dollar amount of misstatement in a population?
Answer: Monetary unit sampling (MUS)
Monetary unit sampling (MUS) is designed to estimate the total dollar amount of misstatement by giving each dollar an equal chance of selection.
An auditor who is unable to obtain sufficient appropriate audit evidence should consider issuing a:
Answer: Qualified opinion or disclaimer of opinion
Scope limitations prevent sufficient evidence gathering, leading to either a qualified opinion (if not pervasive) or a disclaimer of opinion (if pervasive).
In a SOC 1 report, what does 'Type II' indicate?
Answer: Controls are tested over a period of time to assess operating effectiveness
A SOC 1 Type II report covers the design and operating effectiveness of controls over a specified review period, typically six to twelve months.
The concept of 'professional skepticism' in auditing means the auditor should:
Answer: Maintain a questioning mind and critically assess evidence
Professional skepticism requires a questioning mindset and critical assessment of audit evidence, neither assuming honesty nor dishonesty.
Which of the following best describes 'tolerable misstatement' in audit planning?
Answer: The auditor's application of materiality to a specific account balance or class of transactions
Tolerable misstatement is the application of performance materiality to specific accounts, representing the maximum error an auditor will accept without requiring adjustment.