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Formula Sheet Mini Test AUD
Formula Sheet Mini Test AUD
http://www.cpa-cfa.org
What are the main sections and content of an Unqualified opinion (Standard report)?
Addressee
________________ Paragraph –
_____________ Paragraph –
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AUD - Formula Sheet
http://www.cpa-cfa.org
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_____________ Paragraph
1. 1.
2. 2.
3.
4.
1. 1.
2. 2.
3. 3.
4. 4.
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AUD - Formula Sheet
http://www.cpa-cfa.org
What matters can an auditor emphasize but still express an unqualified opinion?
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An explanatory paragraph is _____________
When updating (changing prior) periods the explanatory paragraph should disclose the:
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•
•
•
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3
AUD - Formula Sheet
http://www.cpa-cfa.org
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1.
2.
1.
2.
3.
Financial forecasts –
Financial projection –
4
AUD - Formula Sheet
http://www.cpa-cfa.org
An engagement letter –
Define audit risk and detail the formula and define its components-
2.
3.
5
AUD - Formula Sheet
http://www.cpa-cfa.org
Errors –
Fraud –
1.
6
AUD - Formula Sheet
http://www.cpa-cfa.org
2.
What are the five components of internal controls? ___________________ Draw the diagram
7
AUD - Formula Sheet
http://www.cpa-cfa.org
2.
3.
What is substantive testing used for?
1.
2.
Vouching –
Tracing –
Sampling risk –
1.
2.
Audit risk –
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AUD - Formula Sheet
http://www.cpa-cfa.org
What are the two types of mistakes an auditor can make with sampling:
1.
2.
Deviation rate –
Population of 1000 and sample 100 items and 7 deviations identified within the sample:
9
AUD - Formula Sheet
http://www.cpa-cfa.org
A5-10,11,12 good sample size example and how to evaluate the sample results. Memorize
Tolerable misstatement –
Projected Error =
10
AUD - Formula Sheet
http://www.cpa-cfa.org
Parallel simulation (reperformance test) –
Return on equity =
Return on assets =
11