CHAPTER 1: LO 1-3,71-32. Each auditing term (or organizational name) in Column I below bears a close relationship o a term in Column 2 Column 1 Column2 1 Quality control 2 Operational audit 3. Internal control 4 Government Accountability Cffice S. Disclosure & Critical characteristic that must be main- Regulation of auditors of public companies b Opinion e. Peer review tained by the accounting profession 7. Public Company Accounting Oversight Board efficiency of a unit of an organization L Basis for sampling and testing Auditing staff reporting to Congress Identify the most closcly related sems in Columns 1 and 2 Organize your answer in a two-colamn format by copying the numbers and terms in Column 1 as given. Then, earrange the sequmce of lerms in Column 2 so that each line of your schodule will consain two closely related serm LO 1-6 1-33 CPAs become involved in a varicty of types of engagements. For each of the Sollowing state ments, indicate whether it relates to an examination (E), review (R), or agreed-upon proco lures (A) engagement. If the staiement does not relate to examinations, reviews, or agreed-spon procedures, reply N. Type of Statement . When financial statements are involved, this is referred to as an audt b. The term "We are not aware of any material modifications that should be made" is often included in the report The report issued provides a summary of procedures followed and findings d. The report issued provides "reasonable assurance. e. The procedures involved are generally limited to inquiry and analytical procedures f. The report issued provides "absolute assurance. The report isued provides "limited asurance h. The procedures followed are agreed upon with the specified user or users L This type of engagement provides more assurance than a review The CPA need not be independent to perform this service. LO 1-1, 2,6 1-34 Maich the following definitions (or partial definitions) of the various types of services to the appropriate service. Each service may be used once or not at all Definition (or Partial Definition) Service a. An attest engagement in which the CPAs agree to perform procedures for a specified party and insue a report that is restricted to use by that party b. An engagement designed to express limited assurance 3. Attest engagement relating to subject matter or an assertion. c. An engagement in which the CPAs issue an examination a review, or an agreed-upon procedures report on subject matter or an assertion about subject matter that is the responsibility of another party (e.g, management). An examination designed to provide an opinion that is the CPAs highest level of assurance that the finandial 5. Compliance audit 7. Integrated audit 9. Revievw d. principles, or another acceptable basis of accounting As required by the Sarbanes-Owley Act and the Public Company Accounting Oversight Board, an audit that indudes providing assurance on both the financial statements and internal control over financial reporting e. f. Professional services that enhance the quality of information, or its context, for decision makers g. An attest engagement designed to provide the highet level of 81srane that CPAs provide on an assertion
