Lesson: Engagement Documentation Practice Questions

Instructor: Nick Palazzolo

This lesson focuses on answering multiple choice questions related to engagement documentation. Nick Palazzolo, CPA, guides candidates through his thought process and rationale for each question, providing additional insights and explanations along the way. Topics covered in this lesson include the documentation required for different types of engagements, ownership of audit work papers, and the primary item an audit supervisor reviews to determine if an audit was adequately performed. By following Nick's approach to answering these questions, candidates will gain valuable knowledge and strategies to tackle similar questions on the exam.

Updated: June 22, 2023 Create an account

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Transcript

Instructor: Nick Palazzolo

Nick Palazzolo is head instructor of ExamPrep.ai CPA Review. Nick's teaching style is engaging & upbeat, combining practical Big 4 tax & assurance expertise with years of 1-on-1 coaching. His lessons are concise and emphasize what you need to know to pass. Whether you're a recent grad or working full-time, we’re confident you can conquer your CPA exams with Nick’s review.

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All right, wonderful candidates. Time to run through our multiple choice questions for engagement documentation. First up, we've got, which of the following would not be included in an accountant's documentation of a compilation of a client's financial statements? Wonderful question here. Now, two approaches, I would say when it comes to a question such as this. First, I would say, you know, is there anything here that should just never be in any documentation? So first off, like regardless of, you know, it says compilation. First off, is there anything here that should not be included? So engagement letter, I mean, that's always going to be included in all documentation. So, you know, that's not going to be any answer at all. A memo about potentially significant fraud revealed, regardless of the engagement type. Yeah, I would say that's going to be included as well. But I've also got a list of things included there. I'll show you in a second. Discussion about proper presentation. Sounds right. But again, we'll take a look at our listing. Review of segregation duties and the cash disbursement process. Yeah, let's just take a look. That was my initial thoughts. And I'm trying to give you an idea of how I would approach this. All right. So now we are looking at this slide from our lesson talking about required documentation. Now, the actual approach to this question, I'd say, is first, like I said, eliminate things that are always going to be in the documentation. Right. So engagement letter, memo about fraud, no matter the engagement type, that's going to be included. So, you know, these are going to be included, right? Crossing those off. Wow, that was a messy cross off. So, you know, we talk about your significant findings and

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Terms of an Engagement

Module: 3 Concepts, 34 Lessons

Professional Standards in Audit & Non-audit Engagements Overview

0:46

Professional Standards in Audit & Non-audit Engagements Objectives

2:00

Introduction to Professional Standards in Audit and Non-Audit Engagements

1:00

Terminology in Professional Standards