Before accepting an engagement to audit a new client quizlet multiple. Study with Quizlet and memorize flashcards containing terms like 1) A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the A) inherent risk. B) the prospective client's signature on the engagement letter. Management preoccupation with 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. Which of the following is a risk factor for misappropriation of assets? a) Generous performance-based compensation systems. Requires a complete review of all transactions during the period under Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's Name and describe three supervisory activities that should be performed by the engagement partner and other engagement team members performing supervisory activities. Accepting the Engagement. before accepting an engagement to audit a new client, an auditor is required to: a. - obtain the prospective client's signature to the engagement letter 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 ______. The client's financial reporting system Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's: personal opinions on the company's management. Evaluate management's integrity through review of the management representation letter. 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. 22) When initiating communications with predecessor auditors, prospective auditors should expect a. 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. A preliminary understanding of the prospective client's industry and business b. make inquiries of the predecessor auditor after obtaining the consent of the prospective client b. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. b) Management preoccupation with 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 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 Successor auditors need to communicate with predecessor auditors _____ accepting the engagement, _____ auditors must ask management to authorize the predecessor auditors to discuss confidential information, If predecessor auditors refuse communication, successor auditors _____ accept the engagement and more. The prospective client's signature to the engagement letter c. had considered 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. c. Before accepting an engagement to audit a new client, a CPA is required to obtain: a. a preliminary 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 The audit planning process should begin with the pre-engagement activities of client _________ and continuance. , The term predecessor auditor refers to the public accounting firm that _____. , 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. , An auditor may not accept a prospective client because the _____. make inquiries of the predecessor auditor obtaining the consent of the prospective client b. the prospective client's consent to Multiple Choice Quiz. The prospective client's signature on the engagement letter. Assess the auditor's ability to appropriately staff the potential engagement. 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 assessment of fraud risk factors likely to cause material misstatements. ]has the capabilities to perform the audit [. Management fails to modify prescribed controls for changes in conditions. Requires a consideration of internal control. 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 A common rule of thumb in practice is to use (blank) % of income before taxes as a materiality benchmark. False, while an auditor may choose to do this it is not required. Before accepting an engagement to audit a new client, an auditor is required to: a. C) statistical risk. D) Management fails to modify prescribed controls for changes in conditions. B. d. Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement? A. The firm will have to hire a specialist in one audit area. Before accepting an engagement to audit a new client, a CPA is required to obtain A. B) obtain the prospective client's signature to the engagement letter. 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. Evaluation of all matters of continuing accounting significance. the prospective client's signature on the engagement letter c. Before accepting an engagement to audit a new client, a CPA is required to obtain: Multiple Choice. 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. There will be a client-imposed scope limitation. The prospective client's signature to a written engagement letter. 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 When initiating communications with predecessor auditors, prospective auditors should expect: A. Which of the following is a risk factor for misappropriation of assets? Generous performance-based compensation systems. 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. The auditor is required to confer with the predecessor auditor. The prospective client's consent to make inquiries of the predecessor auditor, if any. -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 make inquiries of the predecessor auditor obtaining the consent of the prospective client obtain the prospective client's signature to the engagement letter 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. - make inquiries of the predecessor auditor after obtaining the consent of the prospective client. C When a successor auditor is offered an auditing engagement, the successor auditor _____. An understanding of the prospective client's control environment d. The prospective client's signature to the engagement letter. An understanding of the prospective client's industry and business. ]. D) financial risk. Study with Quizlet and memorize flashcards containing terms like 3. B) an understanding of the prospective client's industry and business. , Before accepting an engagement to audit a new client, an auditor is required to A. Study with Quizlet and memorize flashcards containing terms like Auditor's responsibilities before accepting new audit engagement?, engagement letter, what would cause an auditor to not accept a new engagement? and more. The attest function: A. the prospective client's signature to a written engagement letter. , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. b. Study with Quizlet and memorize flashcards containing terms like True or False: Before accepting a new client, the auditor is required to conduct a background check on top management. 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. an understanding of the prospective client's industry and business b. obtain the prospective client's signature to the engagement letter c. and more. 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 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 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. understanding as to the reasons for the change of auditors. ) the firm will have to hire a specialist in one audit area 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. Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit? 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. Awareness of the consistency in the application of generally accepted accounting principles between periods. ) staff will need to be rescheduled to cover this new client B. , Risk management activities are undertaken Blank______. 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 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. discuss the management representation letter with the prospective client's audit committee. , A measure of the auditor's assessment of the likelihood 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. 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. Study with Quizlet and memorize flashcards containing terms like A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed and an unqualified opinion has been issued is the: A) inherent risk. T or F: Before accepting a new audit client, the auditor is required to conduct a background check on top management. A representation letter from the prospective client 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. Before accepting an engagement to audit a new client, a CPA is required to obtain a. Advise the client to inform its audit committee of the possible misstatement. B1: Rules issued under the SOX Act of 2002 restricted former members of an audit engagement team from accepting employment as a CEO,CFO or CAO or controller of an audit client that files reports with the SEC. C) a preliminary understanding of the prospective client's control environment. Staff will need to be rescheduled to cover this new client. B) acceptable audit risk. The prospective client's consent to make inquiries of the predecessor auditor. C. Study with Quizlet and memorize flashcards containing terms like Risk management activities are undertaken _____. 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. Discuss the management representation letter with the prospective client's audit committee. 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. The prospective client refuses to let the predecessor auditor respond to communication from the successor auditor. , When auditing a company with multiple locations, the amount of audit attention devoted to various D. The CPA's lack of understanding of the prospective client's internal audit function's audit plan. Establish an understanding with the potential client as to a preliminary measure of materiality. , 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. , The basis for opinion section of the audit report emphasizes the fact that the audit provides only ___ ___ that the financial statements contain no material . , Public accounting firms are _____. Boynton Johnson, and Kell outline a six-step process in deciding whether to accept an engagement: -evaluating the integrity of managment --material errors and irregularities (and fraud) are more likely when management is dishonest. , 2) The first phase in planning an audit and designing an 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 Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? A. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. C Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? A) The CPA's lack of understanding of the prospective client's internal audit function's audit plan B) Management's disregard of its responsibility to maintain an adequate internal control environment C) The CPA's D. Require the client to restate its financial statements before proceeding with the audit. Prior to accepting the engagement, the firm must 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. 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 D) Management fails to modify prescribed controls for changes in conditions. The prospective client's signature to the representation letter. Is an essential part of every engagement by the CPA, whether performing auditing, tax work, or other services. , When an auditor is asked to accept a new client, _____. an assessment of fraud risk factors likely to cause material misstatements. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's Ask the client to arrange a meeting of the predecessor auditor, management, and the successor auditor to discuss the matter. Before accepting a new client engagement, an auditor should: a. 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 Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement?, Which of the following statements is correct with regard to the predecessor-successor communications?, Which of the following statements best represents the reason why auditors prepare engagement letters to be signed by The auditors are planning an audit engagement for a new client in a business that is unfamiliar to the auditors. make inquiries of the predecessor auditor after obtaining the consent of the prospective client. [. Includes the preparation of a report of the CPA's findings. Multiple choice question. an understanding of the prospective client's industry and business. , Auditors are responsible to ensure that management accepts its responsibility for the preparation of the financial statements before accepting an audit engagement Before accepting an engagement to audit a new client, an auditor is required to A. , 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. Which of the following factors most likely would cause an independent auditor to decide not to accept a new audit engagement? The auditor's lack of understanding of the prospective client’s internal audit function’s audit plan. prepare a memorandum setting forth the staffing requirements and documenting the 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. prepare a memorandum setting forth the staffing requirements and documenting the preliminary 26. ) there will be a client-imposed scope limitation C. D. 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_____. A preliminary understanding of the prospective client's control environment. The prospective client's consent to Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to a. Which of the following would be the most useful source of information for the auditors during the preliminary planning stage when they are trying to obtain a general understanding of audit problems that might be encountered? Before accepting an engagement to audit a new client, a CPA is required to obtain a. kinz tbljwl fnljtfae xdxuor tjg mzoe pcat ovju ybcvw foldyk