[jeff]

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[Qlad]

Which of the following statements is correct concerning an auditor's required communication of significant deficiencies?

A. A significant deficiency previously communicated during the prior year's audit that remains uncorrected causes a scope limitation.

B.An auditor should perform tests of controls on significant deficiencies before communicating them to the client.

C. An auditor's report on significant deficiencies should include a restriction on the distribution of the report.

D.An auditor should communicate significant deficiencies after tests of controls but before commencing substantive tests.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

C, financial statement audits are for limited use unlike PCAOB and Attestation audits.

[Anonymous]

I'll go with B?

[Anonymous]

CPAby2015, the answer is C. Remember, financial statement audits are for limited use as you are only testing the controls you plan on relying. For attestation/pcaob, you have to give an opinion on ALL controls.

[Qlad]

CPAhopeful…answer is C…got ur point now..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

ok. thanks!

[Qlad]

A practitioner has been engaged to apply agreed-upon procedures in accordance with Statements on Standards for Attestation Engagements (SSAE) to prospective financial statements. Which of the following conditions must be met for the practitioner to perform the engagement?

A.The prospective financial statement includes a summary of significant accounting policies.

B.The practitioner takes responsibility for the sufficiency of the agreed-upon procedures.

C.The practitioner and specified parties agree upon the procedures to be performed by the practitioner.

D. The practitioner reports on the criteria to be used in the determination of findings.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

C

[Anonymous]

C.The practitioner and specified parties agree upon the procedures to be performed by the practitioner.

[Anonymous]

Yeah, because agreed upon procedures report on the accountant's findings, not on the criteria used.

[Anonymous]

An engagement letter is not required for agreed-upon procedures but a management representation letter is though, right?

[Anonymous]

I think agreement to perform agreed-upon could be oral or written, so engagement letter is optional? In AUP, management is required to provide written assertion so yes, representation letter is needed. It's the compilation that does not require representation letter, I think.

[Anonymous]

Yeah, I believe Iggy mentioned last week that AUP could be oral so no written engagement letter is required.

So since government audits deal with compliance, no mangement representation letter is required?

[Anonymous]

Sorry for confusion. I meant compilation not compliance. I edited my post.

[Anonymous]

Well, for compilation it is still the managenents work that they are compiling on so there should be a representation letter?

[Author]

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