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WorksheetsRecap
Total questions: 20
Worksheet time: 20mins
Who is responsible for the true and fair representation of the amounts and disclosures included in the financial statements?
EY
Managemet
The basic objective of an audit of financial statements is to?
Prepare the audited financial statements in accordance with the applicable financial reporting framework.
Test all transactions to prevent and or detect fraudulent transactions initiated by management or the entity’s employees.
Obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement.
Professional skepticism means that when management makes a statement to you, as an auditor, you should:
Corroborate the statement with other audit evidence.
Require the statement to be put in writing so you can complete your audit documentation.
Believe in the statement to maintain the client relationship.
A.Disregard the statement because it does not represent sufficient appropriate audit evidence.
What is the primary purpose of performing a walkthrough? Select the correct answer.
To obtain evidence to support our assessment of control risk when relying on controls.
To confirm that our understanding of the significant classes of transactions is as we have documented and to confirm the points where misstatements are most likely to occur.
When you consider the flow of information in the critical path, what is the correct order of the events?
Initiated; Processed; Recorded; Reported.
Reported; Processed; Initiated; Recorded.
Initiated; Recorded; Processed; Reported.
Initiated; Recorded; Reported; Processed.
If the audit team determines that internal controls are unlikely to detect and correct a material misstatement, the effect on the CRA would be
CRA decreases as control risk changes to not rely on controls.
CRA increases as control risk changes to not rely on controls.
CRA increases as the inherent risk increases.
CRA decreases as the inherent risk decreases.
Inquiry alone is sufficient to test the operating effectiveness of controls?
Yes
No
Read the following control:
The Assistant Controller reviews the Accounts Payable reconciliation on a monthly basis to ensure the data and reports from the system used in the operation of the control is complete and accurate and that reconciling items above 1,000 are supported by evidence.
What type of control is this control?
Application.
Manual.
ITDM.
Which of the following assertions primarily deals with the risk of overstatement?
Completeness.
Existence.
Presentation & Disclosure.
Measurement.
What significant account were we assigned to perform the audit procedures in prior expedition?
► Once we understood the nature of the significant account, we identified the assertions and (a) associated with the account.
Briefly, what's the difference between a Significant Account and a SCOT?
What strategy did our executives decide to take on Summit Equipment?
First, we obtained an understanding of the critical pat of the PPE SCOT. How did we obtain an understanding?
By reading the prior year narrative, the updated flowchart, and comparing those documents to the GL Analyzer process map. We also asked questions of the client and updated the current year narrative.
Identifying WCGWs.
Identifying controls to respond to those WCGWs.
After obtaining an understanding, we confirm our understanding of the PPE SCOT by performing a
(a)
After we confirmed our understanding of the SCOT, then what do we do?
What are the types of procedures that you can use to test controls?
Inquiry
Observation
Inspection
Reperformance or Recalculation
Analytical procedures
What are the four categories of controls?
Manual
Application
IT dependent manual controls
IT general controls
This is an EY audit tool that has step-by-step guided navigation through EY GAM requirements and considerations for tests of details. This tool assists in determining if you qualify to use different sampling approaches or techniques (such as the IS Table or MUS) and calculates the sample size. After, this tool automatically generates a sampling strategy workpaper that meets all documentation requirements.
(a)
This is an EY-developed program that helps determine which items in the population to select. It utilizes a random number generator and selects number without replacement.
(a)
