Exam 16: Other Public Accounting Services and Reports

An auditor has been engaged to report on management's report on internal control.Management's report points to a material weakness in its system of internal controls over inventory.The auditor's report should be:

Effectiveness refers to outputs of resources maximized for the related inputs and inputs minimized for the related outputs.

Review engagement standards require that the accountant performing the engagement have an objective state of mind.

In providing guidance to accountants, which ranks highest?

In a compilation engagement, the accountant performs no audit procedures.

Which of the following procedures would not be performed in a review of the financial statements of a private company?

Briefly distinguish between a compliance audit and a value for money audit.

One of the key differences between a financial statement audit and a value for money audit is:

In Value for Money audits, the focus is on the financial statements.

An environmental audit focuses on compliance with legislation rather than the effect of compliance on the financial statements.

The term significance as used in the assurance standards refers to:

A VFM audit will tend to use a multidisciplinary audit team with expertise in different areas such as like economics or engineering.

Accounting principles require that interim financial statements be prepared.

An operational audit would not include determining

An accountant's review engagement report would not include a statement that

In 2009, Marg Levy, PA, performed an environmental audit of Scoop Mining.As a result of that engagement she prepared a report which included several recommendations to improve compliance with environmental protection laws.In 2010, Ms.Levy has been approached to perform another audit of environmental protection procedures some of which are based on her earlier recommendations.

Under CICA rules, the auditor verifies the accuracy of management's internal controls statement just as they verify the accuracy of financial statements.

List three matters which the auditor is responsible for reporting on to the audit committee of a public company.

If a prospectus is issued more than 90 days beyond the balance sheet date, then auditor will need to perform procedures on interim financial statement information prior to permitting the use of their audit opinion in the prospectus.

When independent CAs in public practice take engagements to audit governmental units or entities that receive financial assistance from governmental units they must follow