Topic 1
Topic 2
Topic 3
Topic 4
Topic 1 & 3 Bonus
100

Across all engagement teams, this always considered a significant risk.

What is Management Override?

100

Assertion that is related to the risk that the journal entry is recorded in the wrong period.

What is cut-off?

100

In identifying significant disclosures and their relevant assertions, do we consider the same factors that we would in determining significant account balances?

Yes

100

Additional controls you need to consider when the disclosure is composed by simply pulling and summarizing relevant data from the G/L.

Controls over extraction of the data from the G/L and the preparation of the disclosure itself.

100

These specialist generally help the engagement team with the JE applications

IT Specialist

200

These are usually reoccurring entry's.

What is Automated Entries?

200

Assertion that is covered by the following control: Searching for omitted routine entries.

What is Completeness?

200

We should evaluate the BLANK and BLANK risk factors related to the financial statement line items and disclosures.

qualitative and quantitative

200

The most commonly used tool to ensure compliance with reporting standards in financial statement disclosures.

GAAP Checklist

200

The best way to understand the journal entry process is

Performing Walkthroughs

300

This assertion is related to recording an entry in the wrong period.

What is cut-off?

300

Step following the evaluation and test of the design of the relevant controls over journal entries.

What is testing the Operating Effectiveness of the controls over JE's?

300

Name 3 examples of risk factors relevant to the identification of significant accounts and disclosers

  • Size and composition of the account;

  • Susceptibility to misstatement due to errors or fraud;

  • Volume of activity, complexity, and homogeneity of the individual transactions processed through the account or reflected in the disclosure;

  • Nature of the account or disclosure;

  • Accounting and reporting complexities associated with the account or disclosure;

  • Exposure to losses in the account;

  • Possibility of significant contingent liabilities arising from the activities reflected in the account or disclosure;

  • Existence of related party transactions in the account; and

  • Changes from the prior period in account or disclosure characteristics.

300

When is it appropriate that our documentation clearly distinguishes our tests of controls from our substantive procedures?

Dual-purpose testing

300

What are three of the five assertions related to journal entry's

Occurrence, Cutoff, Accuracy, Completeness, Classification

400

Name two types of journal entries.

What are topside, nonstandard, standard or automated?

400

What are some things we would consider when controls over journal entries are concluded to be ineffective, we consider the impact on the audit of the financial statements.

Changing Nature, Timing, and Extent for our substantive procedures. Evaluate the deficiency related to the opinion

400

Name the assertion: Disclosed events, transactions, and other matters have occurred and pertain to the entity

Occurrence & Rights and Obligations

400

What are the 2 ways of documenting the ROMM and related controls for significant disclosures.

A single ROMM exists specifically for all disclosures, or the disclosures are addressed separately in each ROMM for the piece that the disclosure relates to.

400

Name one of three of the likely sources of misstatement.

  • Identify the risks of material misstatement;

  • Identify the relevant controls that address such risks and

  • Test the design and operating effectiveness of such controls as we would for controls that relate to significant account balances.

500

How we address the RoMM depends on this.

What is Level of Aggregation?

500

Name an example of an automated and manual control as they relate to JE's

  • Manual: Approving JE's

  • Automated: IT system allowing access to post

500

Name the Assertion: Financial information is appropriately presented and described, and disclosures are clearly expressed

Classification and Understandability

500

Management checks for _____ and ______ when looking at financial disclosures (assertions).

Completeness and accuracy

500

When are significant disclosures not applicable?

When the account is immaterial to the financial statements.