CPA Auditing and Attestation (AUD) : Types of Engagements - Integrated Audits
Study concepts, example questions & explanations for CPA Auditing and Attestation (AUD)
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Example Questions
Example Question #1 : Types Of Engagements Integrated Audits
An integrated audit
Neither A and B
Both A and B
Is not required by privately held companies
Is only required by large public 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 #2 : Types Of Engagements Integrated Audits
Integrated audits are regulated by the:
ASB
AICPA
PCAOB
IFRS
PCAOB
Integrated audits are regulated under PCAOB standard number 5.
Example Question #5 : Compliance, & Government Audits
As described by PCAOB auditing standard number 2, an effective internal control
Will disclose all internal control weaknesses
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
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 #6 : Compliance, & Government Audits
Of the following, which is true regarding PCAOB standards surrounding internal control?
PCAOB standards surrounding internal control apply only to audit of nonissuers
The PCAOB has not issued standards surrounding internal control
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
PCAOB standards surrounding internal control apply only to audits of issuers.
Example Question #1 : Types Of Engagements Integrated Audits
Each of the following types of controls is considered to be an entity-level control, except those:
Addressing policies over significant risk management policies
Relating to the control environment
Pertaining to the company's risk assessment process
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 #5 : Types Of Engagements Integrated Audits
Internal control over financial reporting consists of which component?
Monitoring
Existing control activities
All of these components
Risk assessment
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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