Podcast
Questions and Answers
What type of engagements are tested in the Auditing and Attestation section?
What type of engagements are tested in the Auditing and Attestation section?
- Engagements exclusively related to governmental entities
- Only employee benefit plan audits
- Only audits of issuers and nonissuers
- Engagements including audits and other assurance services (correct)
Which auditing standards apply to audits of nonissuers?
Which auditing standards apply to audits of nonissuers?
- Public Company Accounting Oversight Board Standards (PCAOB AS)
- International Financial Reporting Standards (IFRS)
- Statements on Auditing Standards (SAS) (correct)
- Generally Accepted Accounting Principles (GAAP)
What is the primary purpose of PCAOB AS?
What is the primary purpose of PCAOB AS?
- To offer guidelines for audits of public companies (correct)
- To provide standards exclusively for governmental audits
- To establish accounting principles for nonissuers
- To define ethical guidelines for accountants
In the context of the described engagements, what does the term 'special reports' refer to?
In the context of the described engagements, what does the term 'special reports' refer to?
What is a characteristic of SAS regarding interim financial statements?
What is a characteristic of SAS regarding interim financial statements?
Which of the following statements is NOT true regarding the audits of issuers?
Which of the following statements is NOT true regarding the audits of issuers?
Which standard setting body is responsible for establishing guidelines for public company audits?
Which standard setting body is responsible for establishing guidelines for public company audits?
Which of the following does NOT fall under the Auditing and Attestation section?
Which of the following does NOT fall under the Auditing and Attestation section?
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Study Notes
Auditing and Attestation Overview
- Covers audits of issuers, nonissuers, governmental entities, not-for-profit entities, and employee benefit plans.
- Includes various types of engagements such as accounting reviews, nonaudit engagements, and assurance engagements.
- Requires adherence to ethical guidelines and applicable standards for each specific engagement.
Professional Standards and Guidelines
- Engagements covered include audits, review of interim financial information, and letters to underwriters.
- Fundamental to audit engagements is compliance with Generally Accepted Auditing Standards (GAAS).
- Specific standards and guidelines are categorized by standard-setting bodies, including AICPA and PCAOB.
Standard Setting Bodies
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Statements on Auditing Standards (SAS):
- Set by AICPA for audits of nonissuers.
- Provide guidance for services such as interim financial reviews.
- Applicable for annual historical financial statements for nonissuers and special reports.
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PCAOB Auditing Standards (PCAOB AS):
- Developed for audits of issuers.
- Offer guidance on services, including reviews of interim financial information and letters to underwriters.
- Relevant for audits of annual historical financial statements for issuers and special reports.
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Generally Accepted Government Auditing Standards (GAGAS):
- Issued by the Government Accountability Office (GAO).
- Provide guidelines for audits of governmental programs and entities receiving government funds.
- Focus on performance audits and compliance audits related to government funding.
Key Engagements
- Audit engagements necessitate following the respective standards to ensure accuracy and compliance.
- Special reports may be required by both issuers and nonissuers under their specific guidelines.
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