Planning
if you are auditing more than 1 entity, what do you need to complete for materiality.
what is " component materiality"
Answer Options:
1) PBC
2) Headed up
3) the PBC was footed for clerical accuracy
4) Conclusion/ reference to WP there is a conclusion.
5) How it ties to the TB
The Commercial POD's EA
who is "Ellen"
Name 3 things you disclose for a line of credit.
Answer Options:
1) Interest rate
2) Term
3) Line maximum
4) YE balance
5) if in compliance with covenants
6) Related interest expenses incurred during year.
If your manager and partner are both on the engagement for 5 years. What do you need to do per your concurring/consultation checklist?
what is " it is required to have the engagement concurring reviewed"
All trial balance accounts in each audit area should agree back to what workpaper?
what is " the financial statements" or "FS-01"
Which partner enjoys making sourdough bread?
Nicole Zompa
How would you address a variance on a confirm (such as AR)
Discuss with the client if their is a reconciling item/payment difference then follow up with the customer you are confirming with.
*don't just tickmark immaterial as it will need to be extrapolated*
If you have fixed asset additions in total over TM but individually immaterial. What would your course of action be for testing
what is "consider sampling through IDEA/ PPC form to get coverage"
If AAF completes a consulting engagement with an audit client, what workpaper do we need to ensure we document all nonattest services.
what is " the independence assessment worksheet"
What is the conclusion on a workpaper for a review engagement.
AAF has limited assurance that there are no material modifications necessary
Which partner in the commercial practice is a craft beer fanatic
Dan Stanhope
What exchange rate should you use for your P&L if converting a subsidiaries financials to USD
what is " average exchange rate" for the calendar year you are auditing
When completing a legal workpaper, how should you summarize your review of the invoices vouched?
summarize activity at the firm level to conclude if you are going to confirm or not.
In your approach, if you assess 3 Highs for your inherent risk table what would your overall assessment be
what is "LOW"
Do you need to extrapolate an inventory count sample, if so give an example, if not why not.
No, your are testing existence for an inventory count not valuation therefore you do not project misstatement of value.
Which partner will you catch out on their motorcycle?
Jeff Mead
What are the 5 Revenue Recognition Steps:
What is
1) Identify contract
2) Identify performance obligations
3) Transaction price
4) Allocation transaction price to performance obligations
5) Recognize revenue as satisfied
what is " reach out to your manager to see if you should complete any of the following:
1) lower your scope for KK testing
2) complete an analytic ratio
3) complete an ARP
What is always a fraud risk for PLN-10 ( Risk Assessment worksheet)
Acceptable Answers:
1) Revenue Recognition
2) Management Override
What work is the audit team responsible for in relation to the tax provision once completed by tax.
what is "the audit tax memo, section auditing the provision"
Which partner's kid is an incredible swimmer?
Rich O'Neil
What document do you tie your equity units to.
what is "Cap Table"
If your auditing fixed assets and a vehicle purchase during the year was financed which the Company never received fund in their bank account. What should you include on your WP SCF tie out.