Compiled Activity in Auditing

DE MATTA, Nicka Suzane C.

BSA31A3-Regular

Framework For Audit and its Related Services

1. Briefly, explain or discuss the framework for audit and its related service.
Mention the auditing standards that govern each.

2. Define audit assurance engagement and give its main objective.

3. How does a review engagement differ from an assurance engagement?

Explain.

4. What is an agreed-upon procedure and what is being reported with this

service?
 
5. What are compilation services? Do they give opinions on the fairness of
the financial statements? Explain.

6. Enumerate the audit related services engagement and explain each.

7. Research on other assurance engagements and explain one.

Wrapping up
In your own words, explain the three categories of audit and its related services, their
objectives and the standards that govern each.

In your second paragraph, select one that you would like to practice when you become
a Certified Public Accountant (CPA), an audit practitioner, or an employee. State your
reason for your choice.

B. Approaches to Risk-Based Auditing

C. Do review engagements come up with an audit report and the train law
provision on the need for an audit certificate by an independent to be attached to
the income tax return and the SEC reportorial Requirements?
 Compiled Activity in Auditing

D. Risk Assessment and Risk Response

1. Define auditing and its objectives. What covers audit scope?

2. What is meant by reasonable assurance in the financial statement? Who

benefits from such?

3. What are the principles specified in the Code of Ethics for Certified Public
Accountant that an auditor must follow in an audit? Could you explain each.

4. Explain risk-based audit approach of auditing. Enumerate the steps or

phases involved.

5. Define material misstatement in the financial statements.

6. Explain what is the risk assessment of the financial statement by the auditor?

7. Explain each of the two types of audit risks a) inherent and control risk and
detection risk

8. Explain the two types of tests that must be performed to gather audit
evidence a) tests of controls and b) substantive tests

---RISK RESPONSE
1. Discuss the auditor's responsibility to design and implement risk response.

2. Explain the objective of the audit to obtain sufficient audit evidence about
risks of material misstatement.

3. Enumerate considerations on determining the extent of testing.

4. Discuss fraud, error and non-compliance to laws and regulations that

would affect material misstatements in the financial statements. Explain the
auditor’s response to each of the types of risks.
 Compiled Activity in Auditing

Wrapping up
Assuming that you are the auditor, on your first paragraph, write your
understanding on how you will assess risks of material misstatements to make
sure that you can gather sufficient evidence . Explain whether the risks are due
to fraud, error or non-compliance to rules and regulations.

In your second paragraph, describe how you will respond to the risks of material
misstatements for the financial statements not to be presented fairly.