CPA Auditing and Attestation (AUD) : Types of Engagements - Integrated Audits
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Example Questions
Example Question #7 : Compliance, & Government Audits
An integrated audit
Is only required by large public companies
Both A and B
Neither A and B
Is not required by privately held companies
Both A and B
An integrated audit is not required by private corporations. The integrated audit is performed under PCAOB standards that govern public companies.
Example Question #8 : Compliance, & Government Audits
Integrated audits are regulated by the:
AICPA
IFRS
ASB
PCAOB
PCAOB
Integrated audits are regulated under PCAOB standard number 5.
Example Question #1 : Types Of Engagements Integrated Audits
As described by PCAOB auditing standard number 2, an effective internal control
Is designed to uncover fraud
Is not effective if there is any material weakness
Is not effective if there are more than two immaterial weaknesses
Will disclose all internal control weaknesses
Is not effective if there is any material weakness
According to PCAOB Accounting Standards: “Maintaining effective internal control over financial reporting means that no material weaknesses exist; therefore, the objective of the audit of internal control over financial reporting is to obtain reasonable assurance that no material weaknesses exist as of the date specified in management's assessment.”
Example Question #2 : Types Of Engagements Integrated Audits
Of the following, which is true regarding PCAOB standards surrounding internal control?
The PCAOB has not issued standards surrounding internal control
PCAOB standards surrounding internal control apply only to audit of nonissuers
PCAOB standards surrounding internal control apply only to audits of issuers
All auditors must follow PCAOB standards surrounding internal control
PCAOB standards surrounding internal control apply only to audits of issuers
PCAOB standards surrounding internal control apply only to audits of issuers.
Example Question #101 : Cpa Auditing And Attestation (Aud)
Each of the following types of controls is considered to be an entity-level control, except those:
Relating to the control environment
Pertaining to the company's risk assessment process
Addressing policies over significant risk management policies
Regarding the company's annual shareholder meeting
Regarding the company's annual shareholder meeting
Entity level controls include controls related to the control environment, the risk assessment process, and the policies over risk management policies. Controls regarding the company's annual shareholder meeting are controls related to a specific event rather than the entity as a whole.
Example Question #102 : Cpa Auditing And Attestation (Aud)
Internal control over financial reporting consists of which component?
Existing control activities
Risk assessment
Monitoring
All of these components
All of these components
The components not listed would include Information and communication and control environment. These 5 components make up ICFR.
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