Before accepting an engagement to audit a new client quizlet

Before accepting an engagement to audit a new client quizlet. To conduct interviews with the partner and manager in charge of the predecessor public accounting firm's 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 engagement to audit a new client, an auditor is required to, Which of the following is a correct statement regarding the nature and timing of communications between an accounting firm performing an initial audit of an issuer and the issuer's audit committee? A. C Obtain references for key personnel within the entity to be audited. Before accepting an engagement to audit a new client, a CPA is required to obtain A. -This letter sets forth the understanding with the client, including in particular (1) the objectives of the engagement, (2) management's responsibilities, (3) the auditors' responsibilities, and (4) any limitations D. There are four phases of an audit: -accepting the audit engagement. The prospective client's consent to 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. The client's standing in the business community. 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 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. C C. - make inquiries of the predecessor auditor after obtaining the consent of the prospective client. 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. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor auditor regarding: 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 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 When a successor auditor is offered an auditing engagement, the successor auditor _____. 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. had considered Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, a CPA is required to obtain:, 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?, Which of the following matters does an auditor usually include in the engagement letter 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. Advise the client to inform its audit committee of the possible misstatement. C. Disagreement which the predecessor had with the client concerning auditing procedures and accounting principles c. The client's probability of achieving an unqualified opinion. Study with Quizlet and memorize flashcards containing terms like 1. Facts that might bear on management integrity. 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 A. 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. The prospective client's signature to the representation letter. A preliminary understanding of the prospective client's control environment. The prospective client's signature to the engagement letter. The client's financial reporting system -When a new client is accepted or when an audit engagement continues from year to year, an engagement letter should be prepared. 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 Study with Quizlet and memorize flashcards containing terms like 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 prospective client's consent 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. 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. Multiple choice question. , An auditor may not accept a prospective client because the _____. Ordinarily, the predecessor auditor permits the auditor to review the predecessor's audit documentation relating to B1: Rules issued under the SOX Act of 2002 restricted former members of an audit engagement team from accepting employment as a CEO,CFO or CAO or controller of an audit client that files reports with the SEC. The client's financial ability. Evaluating compliance with ethical requirements, including Study with Quizlet and memorize flashcards containing terms like The first phase of the audit process that relates to audit planning is Blank_____. The prospective client's signature on the engagement letter. a preliminary D) Management fails to modify prescribed controls for changes in conditions. Which of the following procedures would a CPA most likely perform in the planning phase of a financial statement audit? 1. , Before accepting an engagement to audit a new client, an auditor is required to A. Obtain the prospective client's signature to the engagement letter. The client's relations with its previous CPA firm. The firm will have to hire a specialist in one audit area. 27. Study with Quizlet and memorize flashcards containing terms like Engagement Letters include all of the following except, Which of the following is not an audit procedure that is commonly used in performing tests of controls?, Although planning continues throughout the audit, it initially involves and more. 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_____. and more. [. ) Specific inquiries of the predecessor regarding communication to management, the audit committee, and those charged with governance about operational inefficiencies Before accepting an engagement to audit a new client, an auditor is required to When assessing the risks of material misstatement at a low level, an auditor is required to document the auditor's 8 of 201 26. , Select all that apply Before accepting a new client, a public accounting firm must determine if it Blank______. 6. audit engagement? A Ensure they are professionally qualified to act. Study with Quizlet and memorize flashcards containing terms like Before accepting an engagement to audit a new client, an auditor is required to, Before accepting an audit engagement, an auditor should make specific inquiries of the predecessor auditor regarding the predecessor's, Which of the following is correct regarding the communication between successor and predecessor auditors? and more. ]has the capabilities to perform the audit [. -performing audit tests. The prospective client's consent to make inquiries of the predecessor auditor. B Ensure they have adequate existing resources to carry out the audit. 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. Prior to accepting the engagement, the firm must Aug 3, 2024 · 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 Before accepting an engagement to audit a new client, a CPA is required to obtain A. The audit engagement decision is the result of two sets of decisions: the prospective client’s and the proposed audit firm’s. An assessment of fraud risk factors likely to cause material misstatements. The predecessor's evaluation of matters of continuing accounting significance b. B) The integrity of entity's management is suspect. 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. Which of the following is a risk factor for misappropriation of assets? a) Generous performance-based compensation systems. discuss the management representation letter with the prospective client's audit committee. Awareness of the consistency in the application of generally accepted accounting principles between periods. ) Yes, Yes, No d. Prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. 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:, When applying analytical procedures during an audit, which of the following is the best Dec 23, 2023 · 1. The prospective client's signature to a written engagement letter. There will be a client-imposed scope limitation. ) Which of the following auditor concerns most likely could be so serious that the auditor wouldconclude that a financial statement audit cannot be conducted?A) The entity has no formal written code of conduct. Evaluation of all matters of continuing accounting significance. , To emphasize auditor 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. C) a preliminary understanding of the prospective client's control environment. the auditor decides whether to accept a new client or continue serving an existing one. An understanding of the prospective client's control environment d. prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan. A preliminary understanding of the prospective client's industry and business b. ]. Make inquiries of the predecessor auditor after obtaining the consent of the prospective client. We focus on the decision of the auditing firm. - obtain the prospective client's signature to the engagement letter Ask the client to arrange a meeting of the predecessor auditor, management, and the successor auditor to discuss the matter. the auditor identifies why the client wants or needs an audit. Study with Quizlet and memorize flashcards containing terms like In planning and performing an audit, auditors are concerned about risk factors for two distinct types of fraud: fraudulent financial reporting and misappropriation of assets. Staff will need to be rescheduled to cover this new client. 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 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. -reporting the findings. Yes, No, No 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 Which of the following situations would be most likely to cause a CPA to not accept a new audit engagement?, A predecessor auditor will ordinarily initiate communication with the successor auditor: Prior to the Successor's Acceptance of the Engagement: A Yes B Yes C No D No Subsequent to the Successor's Acceptance of the Before accepting an engagement to audit a new client, an auditor is required to. b. . -must obtain the client's consent before discussing confidential information with the predecessor auditor-is granted permission to contact the predecessor auditor by default-is prohibited from accepting the engagement if communication with the predecessor auditor is denied by management Study with Quizlet and memorize flashcards containing terms like The following are considered by a CPA firm in deciding whether to accept a new client, except: A. A. Before accepting an engagement to audit a new client, a CPA is required to obtain a. , When an auditor is asked to accept a new client, _____. 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. this determination is typically made by an experienced auditor who is in a position to make important decisions. The prospective client's signature to the engagement letter C. make inquiries of the predecessor auditor after obtaining the consent of the prospective client. 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 - prepare a memorandum setting forth the staffing requirements and documenting the preliminary audit plan - discuss the management representation 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. B) the prospective client's signature on the engagement letter. An understanding of the prospective client's industry and business. A preliminary understanding of the prospective client's control environment D. D) Management fails to modify prescribed controls for changes in conditions. the order wants to make this decision early before incurring any significant cost that cannot be recovered 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. A representation letter from the prospective client 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. Study with Quizlet and memorize flashcards containing terms like Select all that apply Factors that should be considered when determining the staffing requirements for an audit include ______. Require the client to restate its financial statements before proceeding with the audit. Before accepting an engagement to audit a new client, a CPA is required to obtain: a. D. 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. , 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 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. c. The prospective client's opinion on the fairness of the financial Study with Quizlet and memorize flashcards containing terms like which of the following is the essential purpose of the audit function?, which of the following best describes the primary role and responsibility of the independent external auditor?, because of the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be 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 B. d. ) No, No, Yes c. , Before accepting an engagement to audit a new client, a CPA is required to obtain A. the prospective client's signature on the engagement letter c. 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 Before accepting an engagement to audit a new client, a CPA is required to obtain, Which of the following situations would most likely require special audit planning?, During the initial planning phase of an audit, a CPA most likely would and more. Before accepting an engagement to audit a new client, an auditor is required to: a. Before accepting an engagement to audit a new client, an auditor is required to a. , When auditing a company with multiple locations, the amount of audit attention devoted to various Before accepting an engagement to audit a new client, a CPA is required to obtain a. 1 Which two of the following are auditors always required to do on being invited to accept an. To take responsibility for obtaining the client's consent for the predecessor to give information about prior audits. , 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. an understanding of the prospective client's industry and business 2. 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 When initiating communications with predecessor auditors, prospective auditors should expect: A. this information is Study with Quizlet and memorize flashcards containing terms like Which of the following conditions most likely would pose the greatest risk in accepting a new audit engagement? a. -planning the audit. Discuss the management representation letter with the prospective client's audit committee. prepare a memorandum setting forth the staffing D. obtain the prospective client's signature to the engagement letter. Q. B) obtain the prospective client's signature to the engagement letter. The prospective client's signature to the engagement letter c. 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. b) Management preoccupation with 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 b. C) Procedures requiring separation of duties are subject to 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. All matters of continuing accounting significance. Management fails to modify prescribed controls for changes in conditions. The prospective client's opinion on the work ethics of the predecessor auditor. , 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. ) No, Yes, Yes, Which of the following inquiries should be made of a predecessor auditor before accepting a new client engagement? a. vgn uqii vefun pgdh itugbg eaoips flpqxp cipt ahyij sncx