Exam (elaborations)
ACA audit and assurance with complete solutions graded A+
- Course
- Institution
ACA audit and assurance with complete solutions graded A+
[Show more]
Content preview
ACA audit and assuranceAssurance conclusions - correct answer ✔✔- give limited assurance
- expressed negatively, concluding that 'nothing has come to our attention...'
- the level of assurance is lower than for an audit
- procedures are typically limited to analytical procedures and enquiries (less work is done than in an
audit)
- the objective is to reduce risk to an acceptable level
Audit conclusions - correct answer ✔✔- give reasonable assurance (higher but not absolute)
- expressed positively, stating that in the auditors opinion, the financial statements are 'true and fair'
- involve tests of detail and tests of control
- objective is to reduce risk to a low level
General safeguards - correct answer ✔✔- Consult ethics partner
- Engagement quality review (all listed companies must have one)
- Communicate with those charged with governance
Self interest threat - key words - correct answer ✔✔'reluctant to identify errors'
'reluctant to challenge management'
'reluctant to modify the audit report'
due to
'undue dependence on fee income'
'gifts/hospitality'
'job offer'
self interest threat safeguards - correct answer ✔✔Fee limits
Extended EQR
,Do not accept gifts - policies for accepting gifts - 3rd party test
self review threat - key words - correct answer ✔✔'unable to take an impartial view'
'inhibited from questioning judgements'
due to
reviewing your own work or a colleague's work
self review threat - safeguards - correct answer ✔✔Separate teams ( without information barriers)
management threat - keywords - correct answer ✔✔'required to make judgements and take
management decisions'
'too closely aligned'
'erode the distinction between the entity and the firm'
'not able to apply a proper degree of professional scepticism'
management threat - safeguards - correct answer ✔✔Inform management that all work will be of a
- Technical
- Mechanical
- Informative
nature only.
Advocacy threat - keywords - correct answer ✔✔'would not be seen to be independent'
'promoting the client'
Advocacy threat - safeguards - correct answer ✔✔Say no
familiarity threat - keywords - correct answer ✔✔'predisposed to accept the point of view of your client'
'insufficiently questioning'
due to
, 'long association'
'close personal relationships'
familiarity threat - safeguards - correct answer ✔✔Rotate staff
Remove staff with close relationships with client
intimidation threat - keywords - correct answer ✔✔'influenced by fear of threats'
'aggressive or dominating behaviour'
intimidation threats - safeguards - correct answer ✔✔Explain you wont be intimidated
Consider resignation
conflict of interest threat - keywords - correct answer ✔✔'not acting in the best interest of both parties'
'confidential information may be leaked'
conflict of interest threat - safeguards - correct answer ✔✔Separate teams with information barriers
Signed confidentiality agreements
Inform both parties and get written consent
safeguard when staff from the audit are loaned to the audit client - correct answer ✔✔prohibited apart
from low level secondments to national audit agencies
safeguard when audit partner joins the audited entity as key management personnel - correct answer
✔✔audit firm should resign and not accept reappointment for 2 years
safeguards when member of the audit team (not audit partner) joins the audited entity as key
management personnel - correct answer ✔✔Review by more senior engagement professional and get
advice from professional body
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Sakayobako30. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now