Before accepting an engagement to audit a new client quiz qui
Before accepting an engagement to audit a new client quiz qui. “Instinct plays a role,” said Kirisits, who also relies on the checklist for client engagement and continuance issued by Practitioners Publishing Company (PPC). Audit program Dec 1, 2020 · While client acceptance is no crystal ball, sound client acceptance procedures can help CPA firms identify potential problem clients before they cause trouble. The learning outcomes include the explanation of matters that should be considered and procedures that should be followed by a firm before accepting a new client, a new engagement for an existing client, or agreeing the terms of any new Before accepting an engagement to audit a new client, a CPA is required to obtain: A)an understanding of the prospective client's industry and business. audit fees to be charged special expertise needed level of risk client industry, True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. Before accepting an engagement to audit a new client, a CPA is required to obtain: A)an understanding of the prospective client's industry and business. , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. attempt to communicate with the predecessor auditor before accepting the engagement. c. TRUE FALSE, Client-imposed This year, Wooten Enterprises engaged a new auditor who must: a. Ordinarily, the predecessor auditor permits the auditor to review the predecessor's audit documentation relating to Before accepting an engagement to audit a new client, an auditor is required to make inquiries of the predecessor auditor after obtaining the consent of the prospective client obtain the prospective client's signature to the engagement letter Study with Quizlet and memorize flashcards containing terms like Audit Standards require auditors to perform due _________prior to accepting or continuing with a client. reject the Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, An engagement letter is used primarily to:, Which of the following types of transactions would be routine and computerized? and more. the client's financial reporting system has been in place for 10 years, B1: Before accepting an engagement to audit a new client, a CPA is required to obtain: A. at the conclusion of the audit engagement before issuing the audit report before beginning any audit engagement only during the audit Before accepting an engagement to audit a new client, an auditor is required to: make inquiries of the predecessor auditor after obtaining the consent of the prospective client. C) a preliminary understanding of the prospective client's control environment. The prospective client's opinion on the fairness of the financial After client acceptance, the terms of the engagement are agreed by the auditor with the client. , Before accepting an engagement to audit a new client, an auditor is required to A. F. B) Management's disregard of its responsibility to maintain an adequate internal control environment. Audit engagement letter d. It specifies the nature of the contract between the audit firm and the client and minimises the risk of any misunderstanding of the auditor's role. Study with Quizlet and memorize flashcards containing terms like While clients are very particular about which auditor they will select, auditors are willing to accept any client due to the financial benefits they receive. Relevant to ACCA Qualification Paper P7 The syllabus for Paper P7, Advanced Audit and Assurance includes Professional Appointments (syllabus reference C4). , When auditing a company with multiple locations, the amount of audit attention devoted to various D) Management fails to modify prescribed controls for changes in conditions. A preliminary understanding of the prospective client’s industry and business b. Before accepting an engagement to audit a new client, an auditor is required to: make inquiries of the predecessor auditor after obtaining the consent of the prospective client. an Chapter 7--Accepting the Engagement and Planning the Audit There are four phases of an audit: 1--accepting the audit engagement 2--planning the audit 3--performing audit tests 4--reporting the findings The audit engagement decision is the result of two sets of decisions: the prospective client’s and the proposed audit firm’s. the prospective client's signature on the engagement letter c. there will be a client-imposed scope limitation C. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, The Scope and nature of an auditors contactual obligation to a client is ordinarily set forth in the:, Which of the following statements would least likely appear in an auditors engagement letter? and more. C Study with Quizlet and memorize flashcards containing terms like An inadequate understanding of the entity's internal control would most likely cause an auditor to decline a new audit engagement. ) No, No, Yes c. ” While new business can be a good thing, relationships need appropriate vetting. TRUE FALSE, Before accepting an engagement to audit a new client, an auditor is required to discuss the management representation letter with the client's audit committee. The prospective client's consent Before accepting an engagement to audit a new client, a CPA is required to obtain a. A representation letter from the prospective client Study with Quizlet and memorize flashcards containing terms like Hawkins requested permission to communicate with the predecessor auditor and review certain portions of the predecessor auditor's working papers. Study with Quizlet and memorize flashcards containing terms like The audit planning process should begin with the pre-engagement activities of client _________ and continuance. Awareness of the consistency in the application of GAAP between periods. An understanding of the prospective client's industry and business B. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to:, An engagement letter is used primarily to:, Which of the following types of transactions would be routine and computerized? and more. The prospective client’s signature to the engagement letter c. A preliminary understanding of the prospective client's control environment. seek the SEC's permission to accept the engagement if Wooten is publicly owned. obtain the prospective client's signature to the engagement letter. Independent auditor’s report c. , The probability that the firm could issue a clean, unmodified opinion when in fact a modified opinion should have been issued is referred to as _________, True or false: Public accounting firms devote substantial time to make Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Before accepting an engagement to audit a new client, an auditor is required to, Which of the following steps should an auditor perform first to determine the existence of Sep 30, 2020 · Are there any legal/ political/ technological changes which impact the Industry in which the client is operating? Every Audit firms must ensure that all the above procedures have been complied with before accepting the audit engagement to mitigate the audit risk at certain level. A preliminary understanding of the prospective client's control environment D. Yes, No, No b. Multiple choice question. 8 Before accepting an engagement to audit a new client, an auditor is required to A. B. The prospective client's refusal to permit this will bear directly on Hawkins' decision concerning the:, In assessing whether to accept a client for an audit engagement, a CPA should Study with Quizlet and memorize flashcards containing terms like Considered before accepting new client, Three Preliminary engagement activities, Determine the Audit Engagement Team Requirements (factors) and more. Management has a reputation for consulting with several accounting firms about significant accounting issues, Before accepting an engagement to audit a new client, a CPA is required to obtain: a. , 2) Before accepting an engagement to audit a new client, an auditor is required to: A) make inquiries of the predecessor auditor after obtaining the consent of the prospective client. C)a preliminary understanding of the prospective client's control environment. , Risk management activities are undertaken Blank______. the prospective client's signature to a written engagement letter. Require the client to restate its financial statements before proceeding with the audit. Feb 12, 2020 · Before accepting audit clients, she researches information about their board members and obtains references for them. A prospective client calls saying, “Can you audit my company?” and we respond, “sure. The prospective client's signature on the engagement letter. d. make inquiries of the predecessor auditor after obtaining the consent of the prospective client. develop an attitude of professional skepticism concerning management's financial statement assertions. the prospective client's consent to make inquiries of Before accepting an engagement to audit a new client, a CPA is required to obtain: A) an understanding of the prospective client's industry and business. , Auditors are responsible to ensure that management accepts its responsibility for the preparation of the financial statements before accepting an audit engagement Study with Quizlet and memorize flashcards containing terms like 4 considerations before accepting a new client, Where to go about management integrity (5), Why client's financial strength? (2) and more. C) The CPA's Study with Quizlet and memorize flashcards containing terms like An auditor obtains knowledge about a new client's business and its industry in order to: a. There are many ways an auditor can accumulate evidence to meet the overall audit objectives. The prospective client's signature to a written engagement letter. Ordinarily, the predecessor auditor permits the auditor to review the predecessor's audit documentation relating to Study with Quizlet and memorize flashcards containing terms like True or false: The extent of effort that goes into evaluating a new client is normally much less than the decision to continue with an existing client. a preliminary b. The prospective client's opinion on the work ethics of the predecessor auditor. com Before accepting an engagement to audit a new client, an auditor is required to Make inquiries of the predecessor auditor after obtaining the consent of the prospective client. an understanding of the prospective client's industry and business. the prospective client's consent to make inquiries of the predecessor auditor, Hill, CPA has been Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? A) The CPA's lack of understanding of the prospective client's internal audit function's audit plan. Opinion of any susequent events occuring D) Management fails to modify prescribed controls for changes in conditions. ) No, Yes, Yes, Which of the following inquiries should be made of a predecessor auditor before accepting a new client engagement? a. A. Facts that might bear on management integrity. She also meets with them in person. Not doing so can lead to significant (and sometimes disastrous) consequences. B)the prospective client's signature on the engagement letter. Study with Quizlet and memorize flashcards containing terms like Before accepting a new client, a public accounting firm must determine if it, True or false: An auditor obtains an understanding of the client and its environment to identify audit risks that may result in material misstatements. Question: Before accepting an engagement to audit a new client, a CPA is required to obtain:Multiple Choicean assessment of fraud risk factors likely to cause material misstatements. The firm will have to hire a specialist in one audit area. Before accepting an engagement to audit a new client, an auditor is required to: a. Study with Quizlet and memorize flashcards containing terms like which of the following auditor concerns most likely could be so serious that the auditor would conclude that the financial statement audit cannot be conducted, before accepting an engagement to audit a new client, an auditor is required to, which of the following steps should an auditor perform first to determine the existence of If such problems cannot be resolved, the firm should decline acceptance of the engagement. C. Evaluating compliance with ethical requirements, including Relevant to ACCA Qualification Paper P7 The syllabus for Paper P7, Advanced Audit and Assurance includes Professional Appointments (syllabus reference C4). Assuming independence and requisite technical abilities, the pre- acceptance evaluation of a prospective audit engagement normally focuses on three factors: 1) personal integrity of the prospective client's management and principals, 2) presence of a. An understanding of the prospective client's control environment d. - make inquiries of the predecessor auditor after obtaining the consent of the prospective client. B) the prospective client's signature on the engagement letter. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to obtain A. Armed with this information, a CPA firm may avoid the risk and decline the prospective opportunity or begin the client relationship fully aware of the risks presented by the new client 26. preliminary engagement activities client acceptance and continuance planning the audit, Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank_____. Study with Quizlet and memorize flashcards containing terms like Which of the following is NOT true regarding audit documentation for a specific audit?, Which of the following factors most likely would lead a CPA to conclude that a potential audit engagement should NOT be accepted?, Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor 3. A preliminary understanding of the prospective client's industry and business b. evaluate whether the aggregation of known . Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit? Before accepting an engagement to audit a new client, a CPA is required to obtain: An assessment of fraud risk factors likely to cause material misstatements. The learning outcomes include the explanation of matters that should be considered and procedures that should be followed by a firm before accepting a new client, a new engagement for an existing client, or agreeing the terms of any new Before accepting an engagement to audit a new client, an auditor is required to: - discuss the management representation letter with the prospective client's audit committee. All matters of continuing accounting significance. discuss the management representation letter with the prospective client's audit committee. , Before accepting an engagement to audit a new client, an auditor is required to: A) make inquiries of the predecessor auditor after obtaining the consent of the prospective client. What must an auditor determine before accepting a new audit or continuing an existing one? Explanation Auditors need to formalize the terms of the engagement and gain a preliminary understanding of the business to identify potential obstacles to accepting an engagement. had considered Study with Quizlet and memorize flashcards containing terms like An inadequate understanding of the entity's internal control would most likely cause an auditor to decline a new audit engagement. Study with Quizlet and memorize flashcards containing terms like Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? A. 1. B) obtain the prospective client's signature to the engagement letter. An understanding of the prospective client's industry and business. an understanding of the prospective client's industry and business b. ]. D)the prospective client's consent to make inquiries of the predecessor auditor. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. Which of the following would a successor auditor ask the predecessor auditor to provide after accepting an audit engagement? Immediately after accepting a new audit client, the auditing firm must evaluate whether there are any circumstances that would impair its independence with respect to the client. Before accepting an engagement to audit a new client, an auditor is required to make inquiries of the predecessor auditor without need to obtain the consent of the prospective client. an understanding of the prospective client's industry and business 2. [. Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. The CPA's lack of understanding of the prospective client's internal audit function's audit plan. The engagement letter will be sent before the audit. Client’s representation letter b. The prospective client refuses to let the predecessor auditor respond to communication from the successor auditor. review the predecessor's audit documentation if the audit is to be in accordance with GAAS. Management fails to modify prescribed controls for changes in conditions. TRUE FALSE, Client-imposed Before accepting an engagement to audit a new client, an auditor is required to Make inquiries of the predecessor auditor after obtaining the consent of the prospective client. ) Yes, Yes, No d. , Before accepting an engagement to audit a new client, a CPA is required to obtain A. Prepare a memorandum setting forth the staffing requirements and documenting the Prevents the auditor from reviewing the audit documentation of the predecessor auditor, Before accepting an engagement to audit a new client, a CPA is required to obtain 1. D) Management fails to modify prescribed controls for changes in conditions. There will be a client-imposed scope limitation. staff will need to be rescheduled to cover this new client B. make constructive suggestions concerning improvements to the client's internal control. Make inquires of the predecessor auditor after obtaining the consent of the prospective client B. b. Advise the client to inform its audit committee of the possible misstatement. Substantive audit procedures are audit procedures designed to obtain an understanding of the entity and its environment. The client's financial reporting system has been in place for 10 years. , Select all that apply Before accepting a new client, a public accounting firm must determine if it _____. the firm will have to hire a specialist in one audit area D. An assessment of fraud risk factors likely to cause material misstatements. Engagement letters . ) Specific inquiries of the predecessor regarding communication to management, the audit committee, and those charged with governance about operational inefficiencies not accept the appointment, where it is known that a limitation will be placed on the scope of the audit. D. prepare a memorandum setting forth the staffing Study with Quizlet and memorize flashcards containing terms like The following are the preliminary engagement activities that shall be performed by the auditor at the beginning of the current audit engagement, except Performing procedures regarding the continuance of the client relationship and the specific audit engagement. Client acceptance and continuance may be the most critical step in an audit, but it’s one that gets little attention. Before accepting an engagement to audit a new client, a CPA is required to obtain a. ]has the capabilities to perform the audit [. Obtain the prospective client's signature to the engagement letter C. , Before accepting an engagement to audit a new client that has previously been audited by another CPA firm, a CPA is required to obtain a. Before accepting an engagement to audit a new client, a CPA is required to obtain A. The prospective client's signature to the engagement letter C. Ask the client to arrange a meeting of the predecessor auditor, management, and the successor auditor to discuss the matter. Jun 26, 2024 · Study with Quizlet and memorize flashcards containing terms like Which of the following auditor concerns most likely could be so serious that the auditor would conclude that a financial statement audit cannot be conducted?, Before accepting an engagement to audit a new client, an auditor is required to:, Which of the following statements is most accurate regarding sufficient and appropriate Study with Quizlet and memorize flashcards containing terms like Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding the predecessor's R. The prospective client's signature to the engagement letter c. Evaluation of all matters of continuing accounting significance M. https://vimeo. - obtain the prospective client's signature to the engagement letter Before accepting an engagement to audit a new client, a CPA is required to obtain A. The objective and scope of the audit and the extent of the auditor’s responsibilities to the client are best documented in: a. F A. svidcp udl odxnx lxem znibs vkufy sjgu exv gdysqo juett