Synopsys For Physical Design Of Asic Computer Science Essay

Synopsys For Physical Design Of Asic Computer Science Essay IC Compiler is the software package from Synopsys for Physical Design of ASIC. It provides necessary tools to complete the back end design of the very deep submicron designs. The inputs to the IC Compiler are: a gate-level netlist which can be from DC Compiler or third-party tools, a detailed floorplan which can be from previous Design Planning through IC Compiler or other third-party tools, timing constraints and other constraints, physical and timing libraries provided by manufacturer, and foundry-process data. IC Compiler generates a GDSII-format file as output ready for tape out of the chip. In addition, it is possible to export a Design Exchange Format (DEF) file of placed netlist data ready for a third-party router. IC Compiler uses a binary Synopsys Milkyway database, which can be used by other Synopsys tools based on Milkyway. [16] 4.2 User Interfaces IC Compiler can be used either with Shell interface (icc_shell) or with Graphical user interface (GUI). Shell interface is the command-line interface, which is used for batch mode, scripts, typing commands, and push-button type of operations. Graphical user interface (GUI) is an advanced graphical analysis and physical editing tool. Certain tasks, such as very accurately displaying the design and providing visual analysis tools, can only performed from the GUI. Also tool command language (Tcl), which is used in many applications in the EDA industry, is available to IC Compiler. Using Tcl, you can write reusable procedures and scripts. The IC Compiler design flow is an easy-to-use, single-pass flow that provides convergent timing closure. Figure 4.1 shows the basic IC Compiler design flow, which is centered around three core commands that perform placement and optimization (place_opt), clock tree synthesis and optimization (clock_opt), and routing and postroute optimization (route_opt). [16] icc1 Figure 4.1 IC Compiler Design Flow [21] For most designs, if the place_opt, clock_opt, and route_opt steps are followed, IC Compiler will provide optimal results. You can use IC Compiler to efficiently perform chip-level design planning, placement, clock tree synthesis and routing on designs with moderate timing and congestion challenges. To further improve the quality of results for your design you can use additional commands and switches for placement, clock tree synthesis, and routing steps that IC Compiler provides. IC Compiler design flow involves execution of following steps: 1. Set up and prepare the libraries and the design data. 2. Perform design planning and power planning. -Design planning is to perform necessary steps to create a floorplan, determine the size of the design, create the boundary and core area, create site rows for the placement of standard cells, set up the I/O pads. -Power planning, is to perform necessary steps to create a power plan to meet the power budget and the target leakage current. 3. Perform placement and optimization. IC Compiler placement and optimization uses enhanced placement and synthesis technologies to generate a legalized placement for leaf cells and an optimized design, which addresses and resolves timing closure issues for the provided design. You can supplement this functionality by optimizing for power, recovering area for placement, minimizing congestion, and minimizing timing and design rule violations. To perform placement and optimization, use the place_opt core command (or from GUI choose Placement menu and then Core Placement and Optimization sub-menu). 4. Perform clock tree synthesis and optimization. To perform the clock tree synthesis and optimization phase, use the command clock_opt (or choose Clock > Core Clock Tree Synthesis and Optimization in the GUI). IC Compiler clock tree synthesis and embedded optimization solve complicated clock tree synthesis problems, such as blockage avoidance and the correlation between preroute and postroute data. Clock tree optimization improves both clock skew and clock insertion delay by performing buffer sizing, buffer relocation, gate sizing, gate relocation, level adjustment, reconfiguration, delay insertion, dummy load insertion, and balancing of interclock delays. 5. Perform routing and postroute optimization. To perform routing and postroute optimization, use the route_opt core command (or choose Route > Core Routing and Optimization in the GUI). As part of routing and postroute optimization, IC Compiler performs global routing, track assignment, detail routing, search and repair, topological optimization, and engineering change order (ECO) routing. For most designs, the default routing and postroute optimization setup produces optimal results. If necessary, you can supplement this functionality by optimizing routing patterns and reducing crosstalk or by customizing the routing and postroute optimization functions for special needs. 6. Perform chip finishing and design for manufacturing tasks. IC Compiler provides chip finishing and design for manufacturing and yield capabilities that you can apply throughout the various stages of the design flow to address process design issues encountered during chip manufacturing. 7. Save the design. Save your design in the Milkyway format. This format is the internal database format used by IC Compiler to store all the logical and physical information about a design. [16] 4.3 How to Invoke the IC Compiler 1. Log in to the UNIX environment with the user id and password . 2. Start IC Compiler from the UNIX promt: UNIX$ icc_shell The xterm unix prompt turns into the IC Compiler shell command prompt. 3. Start the GUI. icc_shell> start_gui This window can display schematics and logical browsers, among other things, once a design is loaded. 4.4 Preparing the Design IC Compiler uses a Milkyway design library to store design and its associated library information. This section describes how to set up the libraries, create a Milkyway design library, read your design, and save the design in Milkyway format. These steps are explained in the following sections: à ¢Ã¢â€š ¬Ã‚ ¢ Setting Up the Libraries à ¢Ã¢â€š ¬Ã‚ ¢ Setting Up the Power and Ground Nets à ¢Ã¢â€š ¬Ã‚ ¢ Reading the Design à ¢Ã¢â€š ¬Ã‚ ¢ Annotating the Physical Data à ¢Ã¢â€š ¬Ã‚ ¢ Preparing for Timing Analysis and RC Calculation à ¢Ã¢â€š ¬Ã‚ ¢ Saving the Design 4.4.1 Setting Up the Libraries IC Compiler requires both logic libraries and physical libraries. The following sections describe how to set up and validate these libraries. à ¢Ã¢â€š ¬Ã‚ ¢ Setting Up the Logic Libraries: IC Compiler uses logic libraries to provide timing and functionality information for all standard cells. In addition, logic libraries can provide timing information for hard macros, such as RAMs. IC Compiler uses variables to define the logic library settings. In each session, you must define the values for the following variables (either interactively, in the .synopsys_dc.setup file, or by restoring the values saved in the Milkyway design library) so that IC Compiler can access the libraries: à ¢Ã¢â€š ¬Ã‚ ¢ search_path Lists the paths where IC Compiler can locate the logic libraries. à ¢Ã¢â€š ¬Ã‚ ¢ target_library Lists the logic libraries that IC Compiler can use to perform physical optimization. à ¢Ã¢â€š ¬Ã‚ ¢ link_library Lists the logic libraries that IC Compiler can search to resolve references. à ¢Ã¢â€š ¬Ã‚ ¢ Setting Up the Physical Libraries: IC Compiler uses Milkyway reference libraries and technology (.tf) files to provide physical library information. The Milkyway reference libraries contain physical information about the standard cells and macro cells in your technology library. In addition, these reference libraries define the placement unit tile. The technology files provide information such as the names and characteristics (physical and electrical) for each metal layer, which are technology-specific. The physical library information is stored in the Milkyway design library. For each cell, the Milkyway design library contains several views of the cell, which are used for different physical design tasks. If you have not already created a Milkyway library for your design (by using another tool that uses Milkyway), you need to create one by using the IC Compiler tool. If you already have a Milkyway design library, you must open it before working on your design. This section describes how to perform the following tasks: à ¢Ã¢â€š ¬Ã‚ ¢ Create a Milkyway design library To create a Milkyway design library, use the create_mw_lib command (or choose File > Create Library in the GUI). à ¢Ã¢â€š ¬Ã‚ ¢ Open a Milkyway design library To open an existing Milkyway design library, use the open_mw_lib command (or choose File > Open Library in the GUI). à ¢Ã¢â€š ¬Ã‚ ¢ Report on a Milkyway design library To report on the reference libraries attached to the design library, use the -mw_reference_library option. icc_shell>report_mw_lib-mw_reference_library design_library_name To report on the units used in the design library, use the report_units command. icc_shell> report_units à ¢Ã¢â€š ¬Ã‚ ¢ Change the physical library information To change the technology file, use the set_mw_technology_file command (or choose File > Set Technology File in the GUI) to specify the new technology file name and the name of the design library. à ¢Ã¢â€š ¬Ã‚ ¢ Save the physical library information To save the technology or reference control information in a file for later use, use the write_mw_lib_files command (or choose File > Export > Write Library File in the GUI). In a single invocation of the command, you can output only one type of file. To output both a technology file and a reference control file, you must run the command twice. à ¢Ã¢â€š ¬Ã‚ ¢ Verifying Library Consistency: Consistency between the logic library and the physical library is critical to achieving good results. Before you process your design, ensure that your libraries are consistent by running the check_library command. [16] icc_shell> check_library 4.4.2 Setting Up the Power and Ground Nets IC Compiler uses variables to define names for the power and ground nets. In each session, you must define the values for the following variables (either interactively or in the .synopsys_dc.setup file) so that IC Compiler can identify the power and ground nets: à ¢Ã¢â€š ¬Ã‚ ¢ mw_logic0_net By default, IC Compiler VSS as the ground net name. If you are using a different name, you must specify the name by setting the mw_logic0_net variable. à ¢Ã¢â€š ¬Ã‚ ¢ mw_logic1_net By default, IC Compiler uses VDD as the power net name. If you are using a different name, you must specify the name by setting the mw_logic1_net variable. 4.4.3 Reading the Design IC Compiler can read designs in either Milkyway or ASCII (Verilog, DEF, and SDC files) format. à ¢Ã¢â€š ¬Ã‚ ¢ Reading a Design in Milkyway Format à ¢Ã¢â€š ¬Ã‚ ¢ Reading a Design in ASCII Format 4.4.4 Annotating the Physical Data IC Compiler provides several methods of annotating physical data on the design: à ¢Ã¢â€š ¬Ã‚ ¢ Reading the physical data from a DEF file To read a DEF file, use the read_def command (or choose File > Import > Read DEF in the GUI). icc_shell> read_def -allow_physical design_name.def à ¢Ã¢â€š ¬Ã‚ ¢ Reading the physical data from a floorplan file A floorplan file is a file that you previously created by using the write_floorplan command (or by choosing Floorplan > Write Floorplan in the GUI). icc_shell> read_floorplan floorplan_file_name à ¢Ã¢â€š ¬Ã‚ ¢ Copying the physical data from another design To copy physical data from the layout (CEL) view of one design in the current Milkyway design library to another, use the copy_floorplan command (or choose Floorplan > Copy Floorplan in the GUI). [16] icc_shell> copy_floorplan -from design1 4.4.5 Preparing for Timing Analysis and RC Calculation IC Compiler provides RC calculation technology and timing analysis capabilities for both preroute and postroute data. Before you perform RC calculation and timing analysis, you must complete the following tasks: à ¢Ã¢â€š ¬Ã‚ ¢ Set up the TLUPlus files You specify these files by using the set_tlu_plus_files command (or by choosing File > Set TLU+ in the GUI). icc_shell> set_tlu_plus_files -tech2itf_map ./path/map_file_name.map -max_tluplus ./path/worst_settings.tlup -min_tluplus ./path/best_settings.tlup à ¢Ã¢â€š ¬Ã‚ ¢ (Optional) Back-annotate delay or parasitic data To back-annotate the design with delay information provided in a Standard Delay Format (SDF) file, use the read_sdf command (or choose File > Import > Read SDF in the GUI). To remove annotated data from design, use the remove_annotations command. à ¢Ã¢â€š ¬Ã‚ ¢ Set the timing constraints At a minimum, the timing constraints must contain a clock definition for each clock signal, as well as input and output arrival times for each I/O port. This requirement ensures that all signal paths are constrained for timing. To read a timing constraints file, use the read_sdc command (or choose File > Import > Read SDC in the GUI). icc_shell> read_sdc -version 1.7 design_name.sdc à ¢Ã¢â€š ¬Ã‚ ¢ Specify the analysis mode Semiconductor device parameters can vary with conditions such as fabrication process, operating temperature, and power supply voltage. The set_operating_conditions command specifies the operating conditions for analysis. à ¢Ã¢â€š ¬Ã‚ ¢ (Optional) Set the derating factors If your timing library does not include minimum and maximum timing data, you can perform simultaneous minimum and maximum timing analysis by specifying derating factors for your timing library. Use the set_timing_derate command to specify the derating factors. à ¢Ã¢â€š ¬Ã‚ ¢ Select the delay calculation algorithm By default, IC Compiler uses Elmore delay calculation for both preroute and postroute delay calculations. For postroute delay calculations, you can choose to use Arnoldi delay calculation either for clock nets only or for all nets. Elmore delay calculation is faster, but its results do not always correlate with the PrimeTime and PrimeTime SI results. The Arnoldi calculation is best used for designs with smaller geometries and high resistive nets, but it requires more runtime and memory. [16] 4.4.6 Saving the Design To save the design in Milkyway format, use the save_mw_cel command (or choose File > Save Design in the GUI). [16] CHAPTER 5: Design Planning 5.1 Introduction Design planning in IC Compiler provides basic floorplanning and prototyping capabilities such as dirty-netlist handling, automatic die size exploration, performing various operations with black box modules and cells, fast placement of macros and standard cells, packing macros into arrays, creating and shaping plan groups, in-place optimization, prototype global routing analysis, hierarchical clock planning, performing pin assignment on soft macros and plan groups, performing timing budgeting, converting the hierarchy, and refining the pin assignment. Power network synthesis and power network analysis functions, applied during the feasibility phase of design planning, provide automatic synthesis of local power structures within voltage areas. Power network analysis validates the power synthesis results by performing voltage-drop and electromigration analysis. [16] Figure 5.1 IC Compiler Design Planning [21] 5.2 Tasks to be performed during Design Planning à ¢Ã¢â€š ¬Ã‚ ¢ Initializing the Floorplan à ¢Ã¢â€š ¬Ã‚ ¢ Automating Die Size Exploration à ¢Ã¢â€š ¬Ã‚ ¢ Handling Black Boxes à ¢Ã¢â€š ¬Ã‚ ¢ Performing an Initial Virtual Flat Placement à ¢Ã¢â€š ¬Ã‚ ¢ Creating and Shaping Plan Groups à ¢Ã¢â€š ¬Ã‚ ¢ Performing Power Planning à ¢Ã¢â€š ¬Ã‚ ¢ Performing Prototype Global Routing à ¢Ã¢â€š ¬Ã‚ ¢ Performing Hierarchical Clock Planning à ¢Ã¢â€š ¬Ã‚ ¢ Performing In-Place Optimization à ¢Ã¢â€š ¬Ã‚ ¢ Performing Routing-Based Pin Assignment à ¢Ã¢â€š ¬Ã‚ ¢ Performing RC Extraction à ¢Ã¢â€š ¬Ã‚ ¢ Performing Timing Analysis à ¢Ã¢â€š ¬Ã‚ ¢ Performing Timing Budgeting à ¢Ã¢â€š ¬Ã‚ ¢ Committing the Physical Hierarchy à ¢Ã¢â€š ¬Ã‚ ¢ Refining the Pin Assignment 5.3 Initializing the Floorplan The steps in initializing the floorplan are described below. à ¢Ã¢â€š ¬Ã‚ ¢ Reading the I/O Constraints: To load the top-level I/O pad and pin constraints, use the read_io_constraints command. à ¢Ã¢â€š ¬Ã‚ ¢ Defining the Core and Placing the I/O Pads: To define the core and place the I/O pads and pins, use the initialize_floorplan command. à ¢Ã¢â€š ¬Ã‚ ¢ Creating Rectilinear-Shaped Blocks: Use the initialize_rectilinear_block command to create a floorplan for rectilinear blocks from a fixed set of L, T, U, or cross-shaped templates. These templates are used to determine the cell boundary and shape of the core. To do this, use initialize_rectilinear_block -shape L|T|U|X. à ¢Ã¢â€š ¬Ã‚ ¢ Writing I/O Constraint Information: To write top-level I/O pad or pin constraints, use the write_io_constraints command. Read the Synopsys Design Constraints (SDC) file (read_sdc command) to ensure that all signal paths are constrained for timing. à ¢Ã¢â€š ¬Ã‚ ¢ Adding Cell Rows: To add cell rows, use the add_row command. à ¢Ã¢â€š ¬Ã‚ ¢ Removing Cell Rows: To remove cell rows, use the cut_row command. à ¢Ã¢â€š ¬Ã‚ ¢ Saving the Floorplan Information: To save the floorplan information, use the write_floorplan command. à ¢Ã¢â€š ¬Ã‚ ¢Writing Floorplan Physical Constraints for Design Compiler Topographical Technology: IC Compiler can now write out the floorplan physical constraints for Design Compiler Topographical Technology (DC-T) in Tcl format. The reason for using floorplan physical constraints in the Design Compiler topographical technology mode is to accurately represent the placement area and to improve timing correlation with the post-place-and-route design. The command syntax is: write_physical_constraints -output output_file_name -port_side [16] Figure 5.2 Floor Plan After Initialization [21] 5.4 Automating Die Size Exploration This section describes how to use MinChip technology in IC Compiler to automate the processes exploring and identifying the valid die areas to determine smallest routable, die size for your design while maintaining the relative placement of hard macros, I/O cells, and a power structure that meets voltage drop requirements. The technology is integrated into the Design Planning tool through the estimate_fp_area command. The input is a physically flat Milkyway CEL view. 5.5 Handling Black Boxes Black boxes can be represented in the physical design as either soft or hard macros. A black box macro has a fixed height and width. A black box soft macro sized by area and utilization can be shaped to best fit the floorplan. To handle the black boxes run the following set of commands. set_fp_base_gate estimate_fp_black_boxes flatten_fp_black_boxes create_fp_placement place_fp_pins create_qtm_model qtm_bb set_qtm_technology -lib library_name create_qtm_port -type clock $port report_qtm_model write_qtm_model -format qtm_bb report_timing qtm_bb 5.6 Performing an Initial Virtual Flat Placement The initial virtual flat placement is very fast and is optimized for wire length, congestion, and timing. The way to perform an initial virtual flat placement is described below. à ¢Ã¢â€š ¬Ã‚ ¢ Evaluating Initial Hard Macro Placement: No straightforward criteria exist for evaluating the initial hard macro placement. Measuring the quality of results (QoR) of the hard macro placement can be very subjective and often depends on practical design experience. à ¢Ã¢â€š ¬Ã‚ ¢ Specifying Hard Macro Placement Constraints: Different methods can be use to control the preplacement of hard macros and improve the QoR of the hard macro placement. Creating a User-Defined Array of Hard Macros Setting Floorplan Placement Constraints On Macro Cells Placing a Macro Cell Relative to an Anchor Object Using a Virtual Flat Placement Strategy Enhancing the Behavior of Virtual Flat Placement With the macros_on_edge Switch Creating Macro Blockages for Hard Macros Padding the Hard Macros à ¢Ã¢â€š ¬Ã‚ ¢ Padding the Hard Macros: To avoid placing standard cells too close to macros, which can cause congestion or DRC violations, one can set a user-defined padding distance or keepout margin around the macros. One can set this padding distance on a selected macros cell instance master.During virtual flat placement no other cells will be placed within the specified distance from the macros edges. [16] To set a padding distance (keepout margin) on a selected macros cell instance master, use the set_keepout_margin command. à ¢Ã¢â€š ¬Ã‚ ¢ Placing Hard Macros and Standard Cells: To place the hard macros and standard cells simultaneously, use the create_fp_placement command. à ¢Ã¢â€š ¬Ã‚ ¢ Performing Floorplan Editing: IC Compiler performs the following floorplan editing operations. Creating objects Deleting objects Undoing and redoing edit changes Moving objects Changing the way objects snap to a grid Aligning movable objects 5.7 Creating and Shaping Plan Groups This section describes how to create plan groups for logic modules that need to be physically implemented. Plan groups restrict the placement of cells to a specific region of the core area. This section also describes how to automatically place and shape objects in a design core, add padding around plan group boundaries, and prevent signal leakage and maintain signal integrity by adding modular block shielding to plan groups and soft macros. The following steps are covered for Creating and Shaping Plan Groups. à ¢Ã¢â€š ¬Ã‚ ¢ Creating Plan Groups: To create a plan group, create_plan_groups command. To remove (delete) plan groups from the current design, use the remove_plan_groups command. à ¢Ã¢â€š ¬Ã‚ ¢ Automatically Placing and Shaping Objects In a Design Core: Plan groups are automatically shaped, sized, and placed inside the core area based on the distribution of cells resulting from the initial virtual flat placement. Blocks (plan groups, voltage areas, and soft macros) marked fix remain fixed; the other blocks, whether or not they are inside the core, are subject to being moved or reshaped. To automatically place and shape objects in the design core, shape_fp_blocks command. à ¢Ã¢â€š ¬Ã‚ ¢ Adding Padding to Plan Groups: To prevent congestion or DRC violations, one can add padding around plan group boundaries. Plan group padding sets placement blockages on the internal and external edges of the plan group boundary. Internal padding is equivalent to boundary spacing in the core area. External padding is equivalent to macro padding. To add padding to plan groups, create_fp_plan_group_padding command. To remove both external and internal padding for the plan groups, use the remove_fp_plan_group_padding command. à ¢Ã¢â€š ¬Ã‚ ¢ Adding Block Shielding to Plan Groups or Soft Macros: When two signals are routed parallel to each other, signal leakage can occur between the signals, leading to an unreliable design. One can protect signal integrity by adding modular block shielding to plan groups and soft macros. The shielding consists of metal rectangles that are created around the outside of the soft macro boundary in the top level of the design, and around the inside boundary of the soft macro. To add block shielding for plan groups or soft macros, use the create_fp_block_shielding command. To remove the signal shielding created by modular block shielding, use the remove_fp_block_shielding command. [16] 5.8 Performing Power Planning After completed the design planning process and have a complete floorplan, one can perform power planning, as explained below. à ¢Ã¢â€š ¬Ã‚ ¢ Creating Logical Power and Ground Connections: To define power and ground connections, use the connect_pg_nets command. à ¢Ã¢â€š ¬Ã‚ ¢ Adding Power and Ground Rings: It is necessary to add power and ground rings after doing floorplanning. To add power and ground rings, use the create_rectangular_rings command. à ¢Ã¢â€š ¬Ã‚ ¢ Adding Power and Ground Straps: To add power and ground straps, use the create_power_straps command. à ¢Ã¢â€š ¬Ã‚ ¢ Prerouting Standard Cells: To preroute standard cells, use the preroute_standard_cells command. à ¢Ã¢â€š ¬Ã‚ ¢ Performing Low-Power Planning for Multithreshold-CMOS Designs: One can perform floorplanning for low-power designs by employing power gating. Power gating has the potential to reduce overall power consumption substantially because it reduces leakage power as well as switching power. à ¢Ã¢â€š ¬Ã‚ ¢ Performing Power Network Synthesis: As the design process moves toward creating 65-nm transistors, issues related to power and signal integrity, such as power grid generation, voltage (IR) drop, and electromigration, have become more significant and complex. In addition, this complex technology lengthens the turnaround time needed to identify and fix power and signal integrity problems. By performing power network synthesis one can preview an early power plan that reduces the chances of encountering electromigration and voltage drop problems later in the detailed power routing. To perform the PNS, one can run the set of following commands. [16] synthesize_fp_rail set_fp_rail_constraints set_fp_rail_constraints -set_ring set_fp_block_ring_constraints set_fp_power_pad_constraints set_fp_rail_region_constraints set_fp_rail_voltage_area_constraints set_fp_rail_strategy à ¢Ã¢â€š ¬Ã‚ ¢ Committing the Power Plan: Once the IR drop map meets the IR drop constraints, one can run the commit_fp_rail command to transform the IR drop map into a power plan. à ¢Ã¢â€š ¬Ã‚ ¢ Handling TLUPlus Models in Power Network Synthesis: Power network synthesis supports TLUPlus models. set_fp_rail_strategy -use_tluplus true à ¢Ã¢â€š ¬Ã‚ ¢ Checking Power Network Synthesis Integrity: Initially, when power network synthesis first proposes a power mesh structure, it assumes that the power pins of the mesh are connected to the hard macros and standard cells in the design. It then displays a voltage drop map that one can view to determine if it meets the voltage (IR) drop constraints. After the power mesh is committed, one might discover problem areas in design as a result of automatic or manual cell placement. These areas are referred to as chimney areas and pin connect areas. To Check the PNS Integrity one can run the following set of commands. set_fp_rail_strategy -pns_commit_check_file set_fp_rail_strategy -pns_check_chimney_file set_fp_rail_strategy -pns_check_chimney_file pns_chimney_report set_fp_rail_strategy -pns_check_hor_chimney_layers set_fp_rail_strategy -pns_check_chimney_min_dist set_fp_rail_strategy -pns_check_pad_connection file_name set_fp_rail_strategy -pns_report_pad_connection_limit set_fp_rail_strategy -pns_report_min_pin_width set_fp_rail_strategy -pns_check_hard_macro_connection file_name set_fp_rail_strategy -pns_check_hard_macro_connection_limit set_fp_rail_strategy -pns_report_min_pin_width à ¢Ã¢â€š ¬Ã‚ ¢ Analyzing the Power Network: One perform power network analysis to predict IR drop at different floorplan stages on both complete and incomplete power nets in the design. To perform power network analysis, use the analyze_fp_rail command. To add virtual pads, use the create_fp_virtual_pad command. To ignore the hard macro blockages, use the set_fp_power_plan_constraints command. à ¢Ã¢â€š ¬Ã‚ ¢ Viewing the Analysis Results: When power and rail analysis are complete, one can check for the voltage drop and electromigration violations in the design by using the voltage drop map and the electromigration map. One can save the results of voltage drop and electromigration current density values to the database by saving the CEL view that has just been analyzed. à ¢Ã¢â€š ¬Ã‚ ¢ Reporting Settings for Power Network Synthesis and Power Network Analysis Strategies: To get a report of the current values of the strategies used by power network synthesis and power network analysis by using the report_fp_rail_strategy command. [16] 5.9 Performing Prototype Global Routing One can perform prototype global routing to get an estimate of the routability and congestion of the design. Global routing is done to detect possible congestion hot spots that might exist in the floorplan due to the placement of the hard macros or inadequate channel spacing. To perform global routing, use the route_fp_proto command. 5.10 Performing Hierarchical Clock Planning This section describes how to reduce timing closure iterations by performing hierarchical clock planning on a top-level design during the early stages of the virtual flat flow, after plan groups are created and before the hierarchy is committed. One can perform clock planning on a specified clock net or on all clock nets in the design. à ¢Ã¢â€š ¬Ã‚ ¢ Setting Clock Planning Options: To set clock planning options, use the set_fp_clock_plan_options command. à ¢Ã¢â€š ¬Ã‚ ¢ Performing Clock Planning Operations: To perform clock planning operations, use the compile_fp_clock_plan command. à ¢Ã¢â€š ¬Ã‚ ¢ Generating Clock Tree Reports: To generate clock tree reports, use the report_clock_tree command. à ¢Ã¢â€š ¬Ã‚ ¢ Using Multivoltage Designs in Clock Planning: Clock planning supports multivoltage designs. Designs in multivoltage domains operate at various voltages. Multivoltage domains are connected through level-shifter cells. A level-shifter cell is a special cell that can carry signals across different voltage areas. à ¢Ã¢â€š ¬Ã‚ ¢ Performing Plan Group-Aware Clock Tree Synthesis in Clock Planning: With this feature, clock tree synthesis can generate a clock tree that honors the plan groups while inserting buffers in the tree and prevent new clock buffers from being placed on top of a plan group unless they drive the entire subtree inside that particular plan group. This results in a minimum of clock feedthroughs, which makes the design easier to manage during partitioning and budgeting. [16] 5.11 Performing In-Place Optimization In-place optimization is an iterative process that is based on virtual routing. Three types of optimizations are performed: timing improvement, area recovery, and fixing DRC violations. T

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  Ã‚  Ã‚  Ã‚  Ã‚  A friend is defined as a person whom one knows, likes, and trusts. This type of a relation is friendship. In every society in the world people have and follow this relationship and support it. In some societies this relationship is given more importance than others. In our society friends are given almost the same attention as ones family member. Family is the closest relationship a person has, and if that is disturbed a friend can be very helpful.   Ã‚  Ã‚  Ã‚  Ã‚  For me my friends are a part of my family. I trust my true friends as much as I just my closet family member. A true friend would do anything to save your life. I have experienced this fact when I was 13 years old. My family and I were in Bahamas for our summer vacations along with our very old family friends from Canada. This family used to live in Pakistan but later on settled in Canada. Their youngest son Hassan, and I had been together since we both were born. Our family’s had made our relationship so strong that we were more like brothers than friends. I had always trusted him because he was the only one of my age whom I used to associate with quiet often. That particular summer I had met him after two years and we were both extremely excited to see a drastic change in our personalities. Even though our personalities differed from one another we realized that our friend has had no effect. We got along the same way we used to when me were not mature enough. While si...

How Birth Order Affects One’s Personality Essay -- Personality Psychol

How Birth Order Affects One’s Personality Everyone in the world is born with a special and unique character. Some of their personality is shaped by their surroundings as they grow up as well as the factor of genetics. It is believed by some psychologists/researchers that birth order has a tendency to influence parts of the personality. Birth order isn’t a simplistic 1-2-3 system that says all first borns are equally one way, all second children are another and last-born kids are always just like this or that. These are simply tendencies and general characteristics that often apply. There are dynamics with families that can change relationships. Through your position in the family you develop your behavior pattern, way of thinking and emotional response. Your birth order helps determine your expectations, your strategies for dealing with people and your weaknesses. Reasons for being interested in Birth order is because it is one way to gain an understanding of friends, family members, boy friends, really anyone you wanted to try to scope out. Unfortunately there aren’t any fortune cards or magic spells to understand family and friends. Knowing and understanding birth order can not only help you understand other people but yourself included. The only- child develops characteristics from having to cope with playing alone and with having to fend off adult intrusion. Only children tend to feel frustrated and throw tantrums when not pleased. They love to say â€Å"Leave me alone, I’d rather do it myself!† They tend to have imaginary companions and feel as if the child within was smothered because they had to grow up so quickly. Therefore in turn allow their own children time and space. As well as always being an emotional and considerate friend that loves to listen. First borns tend to be goal setters and high achievers. Along with being perfectionists who are very responsible, organized and determined people. They are rule keepers and follow all the details. The first born is an only child until the second child comes to take away the mother’s attention. The only child becomes a first born feeling there is no love for him or her. In school, first-borns tend to work harder for grades than do later-borns. They often grow to be more competitive and to have higher educational and career aspirations. Any enumeration of prominent people, em... ...e effects all of the children’s personalities. Not everyone’s personalities match that of their birth order. Variables can affect each family situation. These variables include spacing, the sex of the child (there are actually 12 different types of personalities due to sex coinsiding with birth- order.), the sex of the child, physical differences, disabilities, the birth order position of parents, any blending of two or more families due to death or divorce and the relationship between parents. There are many different studies that have been made dealing with birth order. Each one differs slightly from the next. Some of the studies are completely opposing each other. I have tried to compile ones that are relatively similar. sources: www.rayid.com/main/sibling.htm Joman,(1993)Family Constellation: It’s effects on Personality and Social Behavior. New York: Springer Pub.Co. Leman,(1998) The New Birth Order Book: Why you are the way you are,Grand Rapids, Mich. : F.H. Revell Lederman, Sherri Phd.(2000)Birth Order, New York, New York:Whole Family Center, Inc. Gale Encyclopedia of Psychology, 2ed. Gale Group,2001.in association with th Gale Group and Looksmart

Writing Application Letters

Application Letter There are some mistakes and ambiguous expressions in the following application letter for a job as a salesperson. Rewrite it after making the corrections or amendment to it. |Human Resources Department | |Avon Products (Guangzhou) Ltd. | |3? f 420, E. Huanshi Road | |Guangzhou 510075 | | | |July 3, 2009-9-26 | |Dear Sir or Madam: | | | |Noticing the enclosed advertisement in today’s Yangcheng Evening Newspaper, I wish to apply a part-time job as a salesgirl for| |the direct selling of your beauty products. | | | |I am a junior student at Guangdong College of Commerce. My major is Marketing. I studied Marketing, Marketing Techniques, | |Psychology of Consumption, Psychology of Women, Business Law, Labor Law, Business Ethics, Communications, Public Relations, | |etc. | | |I have some experience in marketing in the last two years. During the summer vacation and winter vacation of 2008, I once | |stayed at the Beauty Products Counter in the Taibai Department Store as a salesgirl. Last year I worked as a part-time | |salesgirl on Sundays for Procter and Gamble (Guangzhou) Ltd. I come from house to house to sell Rejoice 2-in-1, and Head and | |Shoulders shampoos. | | | |I think my education and some experience in marketing w ill let me to offer services for your sales promotion. If you give me a| |trial, I would do my best to give you every satisfaction. I will await for your answer. | | |Sincerely yours, | | | |Kay Jin | Writing task Option #1: You have seen the following recruiting advertisement in the local press and would like to apply for the position. Read the advertisement carefully and write a letter of application within 100-120 words, giving details of previous experiences, salary, etc. |Welcome to Our Team – Top Salary | | | |ASSISTANT SALES MANAGER wanted by an international company manufacturing textile piece goods. The applicant must have had | |adequate experience in the sales division of a large company and be willing to accept responsibility. | Option #2: You write an application letter to apply for a position that you may be interested in doing after graduation. Use your own educational background and work experience. What is an application letter? It is normal to send a cover letter (letter of application) with your resume even if you are also sending a complete application form. There may be occasions when you want to send a letter of application, with which you enclose a resume. Tips for writing winning application letters ? Write the letter to a specific person – the person you think is the one who would hire you. Take the trouble to find out the name of the person who is in the likeliest position to hire you. You can always call the receptionist and ask for the company’s mailing address and then ask the name of the specific person you’re looking for. Asking for an address makes it more likely that you’ll get the information you want rather than asking only for the name of a person with a specific title. ? Do your research. The more â€Å"general† your cover letter, the less successful it is likely to be. You want to demonstrate that you know something about the reader’s company, something that you had to do some research to find out. Customizing your letter to a particular company is impressive and makes you stand out from the pack of the job seekers. Tell the reader what you can do for the company, not what you want the company to do for you. Begin by stating some specific way in which you can help the company or department accomplish a particular goal, pre ferably giving an outstanding example of a related accomplishment. E. g. â€Å"Having had direct responsibility for three successful mergers in the energy industry, I am an ideal candidate to assist you with making a smooth transition I your recent merger with Company X†. ? Be specific about the job you are seeking. Hirers do not want to serve as your employment counselor, they want you to have already done your homework and figured out exactly what job you want. The â€Å"I can fulfill so many roles, just put me where I’m needed most† approach will get your letter filed in the wastebasket. ? Quantify your accomplishments. After your initial attention-grabbing statement of how you can help the company and stating your greatest related accomplishment, list four or five additional accomplishments – bulleted and quantified. ? Mention only accomplishments that directly relate to the job you want to get. ? Keep it brief, succinct and simple. Your cover letter should be short and to the point. Rarely should it be longer than one page. Remember, you are trying to capture the reader’s interest in knowing more about you. Telling your life story is boring. ? Make it easy on the eyes. When you’ve finished writing your letter, print it up and take a â€Å"big picture† look at it. Is it visually appealing? Is there plenty of white space (using bullets increases the white space)? Is it filled with complicated sentences and jammed to the margins? Does it look like a letter you would want to read? ? Close with an invitation for the reader to act. Tell the reader you would like to talk or meet and include these words: â€Å"Please give me a call at such-and-such a phone number. † Don’t say â€Å"I’ll give you a call in a few days to follow up and see if you’re interested in meeting†.

Auditing Problems Quiz

Following are multiple choice questions recently released by the AICPA. These questions were released by the AICPA with letter answers only. Our editorial board has provided the accompanying explanations. Please note that the AICPA generally releases questions that it does NOT intend to use again. These questions and content may or may not be representative of questions you may see on any upcoming exams. 2007 AICPA Newly Released Questions – Auditing 1. CPA-05465 Which of the following categories is included in generally accepted auditing standards? a. b. c. d. Standards of review.Standards of planning. Standards of fieldwork. Standards of evidence. ANSWER: Choice â€Å"c† is correct. Generally accepted auditing standards include three categories: general standards, standards of fieldwork, and standards of reporting. Choices â€Å"a†, â€Å"b†, and â€Å"d† are incorrect, based on the above explanation. 1 2007 AICPA Newly Released Questions – Auditing 2. CPA-05466 A retailing entity uses the Internet to execute and record its purchase transactions. The entity's auditor recognizes that the documentation of details of transactions will be retained for only a short period of time.To compensate for this limitation, the auditor most likely would: a. b. c. d. Compare a sample of paid vendors' invoices to the receiving records at year-end. Plan for a large measure of tolerable misstatement in substantive tests. Perform tests several times during the year, rather than only at year-end. Increase the sample of transactions to be selected for cutoff tests. ANSWER: Choice â€Å"c† is correct. When an entity transmits, processes, maintains, or accesses significant information electronically, some accounting data and source documents may be available only in electronic form, or only at a certain point in time.The auditor would generally perform tests of controls several times during the year to compensate for this limitation. Choice â€Å"a† is incorrect. Comparing a sample of paid vendors' invoices to receiving records provides evidence that the company received the goods for which it paid, but only if records are available in sufficient detail to make such a comparison. If detailed records are retained for only a short period of time, such comparisons would need to be performed throughout the year, not just at year-end.Choice â€Å"b† is incorrect. The auditor's judgment as to an appropriate level of tolerable misstatement is based on considerations of materiality and audit risk. Increasing this level implies that the auditor is willing to accept a larger error, which would not be an appropriate response to the limitation described. Choice â€Å"d† is incorrect. Increasing the sample size related to cutoff testing will not provide evidence about transactions occurring throughout the period under audit, since cutoff testing relates to year-end. 2 007 AICPA Newly Released Questions à ¢â‚¬â€œ Auditing 3. CPA-05467 (Adapted) After testing a client's internal control activities, an auditor discovers a number of significant deficiencies in the operation of a client's internal controls. Under these circumstances the auditor most likely would a. b. c. d. Issue a disclaimer of opinion about the internal controls as part of the auditor's report. Increase the assessment of control risk and increase the extent of substantive tests. Issue a qualified opinion of this finding as part of the auditor's report.Withdraw from the audit because the internal controls are ineffective. ANSWER: Choice â€Å"b† is correct. The auditor uses tests of controls to evaluate control risk. In situations where there are a number of significant deficiencies in the operation of the client's internal controls, the auditor would increase the assessment of control risk (and the risk of material misstatement) and revise substantive testing accordingly (for example, by increasing the extent of substantive tests). Choice â€Å"a† is incorrect.An auditor is required to communicate significant deficiencies to management and those charged with governance, and a disclaimer of opinion on the effectiveness of controls would be included in this communication. However, such disclaimer would not be part of the auditor's report on the financial statements. Choice â€Å"c† is incorrect. Since the auditor's report provides an opinion on the financial statements (and not on internal control), significant deficiencies in internal control do not result in a qualified opinion. Choice â€Å"d† is incorrect.The auditor need not withdraw from an audit simply because internal controls are ineffective, but rather would increase the assessment of control risk and revise substantive testing accordingly. 3 2007 AICPA Newly Released Questions – Auditing 4. CPA-05468 Which of the following procedures would be most effective in reducing attestation risk? a. b. c. d. Disc ussion with responsible individuals. Examination of evidence. Inquiries of senior management. Analytical procedures. ANSWER: Choice â€Å"b† is correct. Evidence obtained directly by the accountant (e. . , through physical examination) provides more persuasive evidence than evidence obtained through inquiry, discussion, or analytical procedures, and therefore reduces attestation risk. Choices â€Å"a†, â€Å"c†, and â€Å"d† are incorrect, based on the above explanation. 4 2007 AICPA Newly Released Questions – Auditing 5. CPA-05469 Which of the following is an inherent limitation in internal control? a. b. c. d. Incompatible duties. Lack of segregation of duties. Faulty human judgment. Lack of an audit committee. ANSWER: Choice â€Å"c† is correct.Inherent limitations in internal control are limitations that exist despite implementation of appropriate controls. For example, faulty human judgment may result in errors in the design or use of i nternal controls. Choice â€Å"a† is incorrect. Assigning incompatible duties to a particular individual indicates a missing control, rather than an inherent limitation in internal control. Choice â€Å"b† is incorrect. Lack of segregation of duties indicates a missing control, rather than an inherent limitation in internal control. Choice â€Å"d† is incorrect.Lack of an audit committee indicates a missing control, rather than an inherent limitation in internal control. 5 2007 AICPA Newly Released Questions – Auditing 6. CPA-05470 Which of the following statements is correct regarding a review engagement of a nonpublic company's financial statements performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS)? a. An accountant must establish an understanding with the client in an engagement letter. b. An accountant must obtain an understanding of the client's internal control when performing a review. . A review pro vides an accountant with a basis for expressing limited assurance on the financial statements. d. A review report contains an accountant's opinion of the financial statements taken as a whole. ANSWER: Choice â€Å"c† is correct. A review report is issued when inquiry and analytical procedures provide a reasonable basis for the expression of limited assurance on the financial statements. Choice â€Å"a† is incorrect. While the accountant is required to establish an understanding with the client, preferably in writing, an engagement letter is not required.Choice â€Å"b† is incorrect. When performing a review under SSARS, the accountant is not required to obtain an understanding of the client's internal control. Choice â€Å"d† is incorrect. A review results in the expression of limited assurance that no material modifications are necessary for the financial statements to be in conformity with generally accepted accounting principles. The limited nature of the work performed during a review does not provide sufficient evidence for an opinion on the financial statements taken as a whole. 6 2007 AICPA Newly Released Questions – Auditing 7.CPA-05471 Which of the following procedures does a CPA normally perform first in a review engagement in accordance with Statements on Standards for Accounting and Review Services (SSARS)? a. b. c. d. Inquiry regarding the client's principles and practices and the method of applying them. Inquiry concerning the effectiveness of the client's system of internal control. Inquiry to identify transactions between related parties and management. Inquiry of the client's professional advisors, including bankers, insurance agents, and consultants. ANSWER: Choice â€Å"a† is correct.In performing a review engagement in accordance with SSARS, the accountant should inquire of management regarding the accounting principles and practices used, and the method of applying them. Choice â€Å"b† is i ncorrect. When performing a review under SSARS, the accountant is not required to make inquiries concerning the client's system of internal control. Choice â€Å"c† is incorrect. The accountant may inquire about the existence of related party transactions, but would likely make a more basic inquiry, about the client's accounting principles and practices, first. Choice â€Å"d† is incorrect.In performing a review engagement in accordance with SSARS, the accountant generally directs his/her inquiries to members of management, not to external parties. 7 2007 AICPA Newly Released Questions – Auditing 8. CPA-05472 (Adapted) Which of the following cash transfers results in a misstatement of cash at December 31, 20X1? Bank Transfer Schedule Transfers a. b. c. d. Disbursement date per books per bank 12 /31/X1 01/05/X2 01/04/X2 01/11/X2 12/31/X1 01/04/X2 01/04/X2 01/05/X2 Receipt date per books per bank 12/31/X1 01/04/X2 01/04/X2 01/04/X2 12/31/X1 12/31/X1 12/31/X1 01/04 /X2ANSWER: Choice â€Å"d† is correct. Since the disbursement was not recorded until January 20X2 while the receipt was recorded in December 20X1, cash will be overstated at December 31, 20X1. Choices â€Å"a† and â€Å"c† are incorrect. Both the disbursement and the receipt are recorded in 20X1, so there will be no misstatement of cash at December 31, 20X1. Choice â€Å"b† is incorrect. Both the disbursement and the receipt are recorded in 20X2, so there will be no misstatement of cash at December 31, 20X1. 8 2007 AICPA Newly Released Questions – Auditing 9.CPA-05473 Which of the following describes how the objective of a review of financial statements differs from the objective of a compilation engagement? a. The primary objective of a review engagement is to test the completeness of the financial statements prepared, but a compilation tests for reasonableness. b. The primary objective of a review engagement is to provide positive assurance that the financial statements are fairly presented, but a compilation provides no such assurance. c. In a review engagement, accountants provide limited assurance, but a compilation expresses no assurance. . In a review engagement, accountants provide reasonable or positive assurance that the financial statements are fairly presented, but a compilation provides limited assurance. ANSWER: Choice â€Å"c† is correct. A review provides limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles, whereas a compilation provides no assurance. Choice â€Å"a† is incorrect. A review does not test for completeness, nor does a compilation test for reasonableness.A review provides limited assurance about the financial statements based on inquiry and analytical review procedures, while a compilation provides no assurance and includes no testing for reasonab leness. Choice â€Å"b† is incorrect. A review provides limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles, and it is based on inquiry and analytical review procedures. Positive assurance (such as an audit opinion) is only provided when more extensive procedures have been erformed. Choice â€Å"d† is incorrect. A review provides limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with generally accepted accounting principles, and it is based on inquiry and analytical review procedures. Positive or reasonable assurance (such as an audit opinion) is only provided when more extensive procedures have been performed. A compilation provides no assurance at all. 9 2007 AICPA Newly Released Questions – Auditing 10.CPA-05474 (Adapted) Prior t o commencing fieldwork, an auditor usually discusses the general audit strategy with the client's management. Which of the following matters do the auditor and management agree upon at this time? a. b. c. d. The appropriateness of the entity's plans for dealing with adverse economic conditions. The determination of the fraud risk factors that exist within the client's operations. The control weaknesses to be included in the communication with those charged with governance. The coordination of the assistance of the client's personnel in data preparation.ANSWER: Choice â€Å"d† is correct. Prior to commencing fieldwork, an auditor would establish an understanding with the client as to the services to be performed and the overall audit strategy. This understanding may include arrangements involving the conduct of the engagement, such as timing, client assistance, and the availability of documents. Choice â€Å"a† is incorrect. The auditor does not evaluate the appropriate ness of the entity's plans for dealing with adverse economic conditions prior to commencing fieldwork.The auditor might consider this as part of evaluating the client's ability to continue as a going concern, but this would not occur prior to commencing fieldwork. Choice â€Å"b† is incorrect. Determination of existing fraud risk factors is generally made during the fieldwork stage of the audit, as information and evidence is obtained. Also, fraud risk factors are assessed by the auditor, and would not necessarily be agreed upon with management. Choice â€Å"c† is incorrect. Identification and evaluation of control weaknesses generally occurs during the fieldwork stage of the audit, as information and evidence is obtained.Only those weaknesses that rise to the level of being significant deficiencies (or material weaknesses) are required to be communicated to those charged with governance. 10 2007 AICPA Newly Released Questions – Auditing 11. CPA-05475 (Adapted) An auditor's engagement letter most likely would include a statement that: a. b. c. d. Lists potential significant deficiencies discovered during the prior year's audit. Explains the analytical procedures that the auditor expects to apply. Describes the auditor's responsibility to evaluate going concern issues.Limits the auditor's responsibility to detect errors and fraud. ANSWER: Choice â€Å"d† is correct. An auditor's engagement letter typically includes discussion of limitations of the engagement, such as the fact that the auditor will obtain only reasonable assurance, and therefore a material misstatement may remain undetected. Choice â€Å"a† is incorrect. An auditor's engagement letter typically covers the objectives of the engagement, management's responsibilities, the auditor's responsibilities, limitations of the engagement, and other matters involving the conduct of the audit.Potential significant deficiencies discovered during the prior year's audit would n ot typically be included in the engagement letter. Choice â€Å"b† is incorrect. While the auditor's engagement letter might include a discussion of the overall audit strategy, it typically would not include specific audit procedures. Choice â€Å"c† is incorrect. While the auditor's engagement letter might include a discussion of the auditor's responsibilities, this is usually discussed in fairly general terms. An engagement letter would not describe the auditor's responsibility with respect to specific issues (such as going concern issues). 1 2007 AICPA Newly Released Questions – Auditing 12. CPA-05476 Which of the following factors most likely would cause a CPA to decline to accept a new audit engagement? a. b. c. d. The CPA does not understand the entity's operations and industry. Management acknowledges that the entity has had recurring operating losses. The CPA is unable to review the predecessor auditor's working papers. Management is unwilling to permit inquiry of its legal counsel. ANSWER: Choice â€Å"d† is correct. If a prospective client is unwilling to permit inquiry of its legal counsel, the CPA must consider the implications of this refusal.Such refusal may indicate a lack of cooperativeness on the part of management, or an attempt to be less than forthright with respect to litigation, claims, and assessments. Furthermore, a client's refusal to permit inquiry of its legal counsel ordinarily would result in a disclaimer of opinion. It would be unlikely that a CPA would accept a new engagement under these circumstances. Choice â€Å"a† is incorrect. An understanding of the client's operations and industry should be obtained during the planning stage of the audit.It does not necessarily need to be obtained before acceptance of the engagement. Choice â€Å"b† is incorrect. The fact that the entity has had recurring operating losses may increase the auditor's assessment of risk on the engagement, but it would not preclude acceptance of the engagement. Choice â€Å"c† is incorrect. Although the predecessor's audit documentation provides some audit evidence with respect to opening balances, consistency of accounting principles, and other matters of continuing significance, alternative means of obtaining such evidence generally do exist. 2 2007 AICPA Newly Released Questions – Auditing 13. CPA-05477 An enterprise engaged a CPA to audit its financial statements in accordance with Government Auditing Standards (the Yellow Book) because of the provisions of government grant funding agreements. Under these circumstances, the CPA is required to report on the enterprise's internal controls either in the report on the financial statements or in: a. b. c. d. The report on the performance audit. The notes to the financial statements. A letter to the government funding agency.A separate report. ANSWER: Choice â€Å"d† is correct. The report on the audit of the financial statemen ts should describe the scope of the auditor's testing of compliance with laws and regulations and internal control over financial reporting, and should either present the results of those tests or refer to a separate report containing that information. Choice â€Å"a† is incorrect. The CPA was engaged to audit financial statements in accordance with the Yellow Book, not to perform a performance audit. Choice â€Å"b† is incorrect.The notes to the financial statements are a management representation and would not be used by the CPA to comply with requirements to either report or opine in conformity with Yellow Book requirements. Choice â€Å"c† is incorrect. Governmental Auditing Standards require that the auditor describe the scope of the auditor's testing of compliance with laws and regulations and internal control over financial reporting and present the results of those tests as part of their report or in a separate report, not simply in a letter to the fundi ng agency. 13 2007 AICPA Newly Released Questions – Auditing 14.CPA-05478 An auditor determines that the entity is presenting certain supplementary financial disclosures of pension information that are required by the GASB. Under these circumstances, the auditor should: a. Add an explanatory paragraph to the auditor's report that refers to the required supplementary information. b. State that the audit is not being performed in accordance with generally accepted auditing standards. c. Document in the working papers that the required supplementary information is presented, but should not apply any procedures to the information. . Compare the required supplementary information for consistency with the audited financial statements. ANSWER: Choice â€Å"d† is correct. The auditor should perform certain limited procedures on supplementary information accompanying the financial statements, including evaluating whether the information is consistent with the audited financial statements. Choice â€Å"a† is incorrect. Generally, the auditor's report on the financial statements would not include a reference to required supplementary information unless there were a problem with it (e. . , it was omitted, inappropriately prepared, or the auditor was unable to satisfactorily complete required procedures). Choice â€Å"b† is incorrect. An audit can and should be performed in accordance with generally accepted auditing standards even when required supplementary information is presented. Choice â€Å"c† is incorrect. The auditor should perform certain limited procedures on supplementary information accompanying the financial statements. 14 2007 AICPA Newly Released Questions – Auditing 15. CPA-05479 Comfort letters ordinarily are: a. . c. d. Addressed to the client's Audit committee Underwriter of securities Audit committee Underwriter of securities Signed by the client's Independent auditor Senior management Senior management Indepen dent auditor ANSWER: Choice â€Å"d† is correct. A comfort letter is a letter from the independent auditor to the named underwriter just before the registration of the client's securities. Choices â€Å"a†, â€Å"b†, and â€Å"c† are incorrect, based on the above explanation. 15 2007 AICPA Newly Released Questions – Auditing 16.CPA-05480 Which of the following factors would most likely influence an auditor's consideration of the reliability of data when performing analytical procedures? a. b. c. d. Whether the data were developed in a computerized or a manual accounting system. Whether the data were prepared on the cash basis or in conformity with GAAP. Whether the data were developed under a system with adequate controls. Whether the data were processed in an online system or a batch entry system. ANSWER: Choice â€Å"c† is correct. Strong, effective internal controls improve the reliability of data.Choice â€Å"a† is incorrect. The type of accounting system used does not affect the reliability of data. Both computerized and manual accounting systems can provide reliable data, as long as there are appropriate controls in place. Choice â€Å"b† is incorrect. The accounting basis used does not affect the reliability of data. Reliable data may be provided regardless of whether the cash basis or accrual basis (GAAP) is used, as long as there are appropriate controls in place. Choice â€Å"d† is incorrect. The type of processing system used does not affect the reliability of data.Both online systems and batch systems can provide reliable data, as long as there are appropriate controls in place. 16 2007 AICPA Newly Released Questions – Auditing 17. CPA-05481 When an auditor tests the internal controls of a computerized accounting system, which of the following is true of the test data approach? a. Test data are coded to a dummy subsidiary so they can be extracted from the system under actual oper ating conditions. b. Test data programs need not be tailor-made by the auditor for each client's computer applications. c.Test data programs usually consist of all possible valid and invalid conditions regarding compliance with internal controls. d. Test data are processed with the client's computer and the results are compared with the auditor's predetermined results. ANSWER: Choice â€Å"d† is correct. The test data approach refers to a technique in which the client's application program is used to process a set of test data, the results of which are already known by the auditor. If the client's program is operating effectively, it should generate the same results determined by the auditor. Choice â€Å"a† is incorrect.An integrated test facility (not a test data approach) utilizes dummy accounts. For example, using an integrated test facility (ITF) approach, test data is initially commingled with live data, but coding to a dummy account allows later extraction from the system under actual operating conditions. Choice â€Å"b† is incorrect. Test data programs should be tailor-made by the auditor for each client's computer applications, to ensure that the data is in an appropriate form for that client's system, and that it includes the types of invalid conditions in which the auditor is interested. Choice â€Å"c† is incorrect.Test data contains the types of valid and invalid conditions in which the auditor is interested (it is not necessary to test all combinations of valid and invalid conditions). 17 2007 AICPA Newly Released Questions – Auditing 18. CPA-05482 Under which of the following circumstances would an auditor's expression of an unqualified opinion be inappropriate? a. b. c. d. The auditor is unable to obtain the audited financial statements of a significant subsidiary. The financial statements are prepared on the entity's income tax basis. There are significant deficiencies in the design and operation of the enti ty's internal control.Analytical procedures indicate that many year-end account balances are not comparable with the prior year's balances. ANSWER: Choice â€Å"a† is correct. If the auditor is unable to obtain the audited financial statements of a significant subsidiary, a scope limitation exists. Assuming the effect is material, the auditor would issue either a qualified opinion or a disclaimer of opinion. Choice â€Å"b† is incorrect. Financial statements prepared on an entity's income tax basis are â€Å"other comprehensive basis of accounting† (OCBOA) financial statements.The auditor may issue a special report, which can include an unqualified opinion, on OCBOA financial statements. Choice â€Å"c† is incorrect. Significant deficiencies in the design and operation of an entity's internal control do not preclude issuance of an unqualified opinion, although they do increase the risk of material misstatement and will likely result in modifications to th e nature, timing, and extent of the auditor's testing. Choice â€Å"d† is incorrect. An unqualified opinion may still be expressed when there are significant changes in year-end account balances as compared to prior year balances, as long as the auditor as obtained sufficient appropriate audit evidence about the current balances. 18 2007 AICPA Newly Released Questions – Auditing 19. CPA-05483 An auditor's principal objective in analyzing repairs and maintenance expense accounts is to: a. b. c. d. Determine that all obsolete plant and equipment assets were written off before the year-end. Verify that all recorded plant and equipment assets actually exist. Discover expenditures that were expensed but should have been capitalized. Identify plant and equipment assets that cannot be repaired and should be written off. ANSWER: Choice â€Å"c† is correct.The auditor reviews repair and maintenance expense accounts to test for completeness of asset additions (i. e. , the auditor is looking for items recorded as repairs or maintenance that would more properly have been capitalized as betterment of an asset). Choice â€Å"a† is incorrect. Analyzing the repairs and maintenance account does not provide evidence about obsolete assets. The auditor might review asset records for old assets, or observe assets that are not being used, in an effort to determine whether obsolete plant and equipment assets were written off before year-end.Choice â€Å"b† is incorrect. Analyzing the repairs and maintenance account does not provide evidence about the existence of assets. The auditor might select recorded plant and equipment assets, and then physically locate and observe them, in order to verify existence. Choice â€Å"d† is incorrect. Analyzing the repairs and maintenance account does not provide evidence about assets that cannot be repaired. The auditor might review asset records for old assets, or observe assets that are not being used, in an effort to determine whether assets that cannot be repaired have been properly written off. 9 2007 AICPA Newly Released Questions – Auditing 20. CPA-05484 Which of the following statements is correct concerning materiality in a financial statement audit? a. Analytical procedures performed during an audit's review stage usually decrease materiality levels. b. If the materiality amount used in evaluating audit findings increases from the amount used in planning, the auditor should apply additional substantive tests. c. The auditor's materiality judgments generally involve quantitative, but not qualitative, considerations. d.Materiality levels are generally considered in terms of the smallest aggregate level of misstatement that could be considered material to any one of the financial statements. ANSWER: Choice â€Å"d† is correct. Because the financial statements are interrelated, materiality levels are generally considered in terms of the smallest level of misstateme nt that could be material to any one of the financial statements. Choice â€Å"a† is incorrect. Analytical procedures are performed during an audit's review stage to evaluate the overall financial statement presentation and to assess the conclusions reached.They generally would not result in a change in materiality levels. Choice â€Å"b† is incorrect. If the materiality amount used in evaluating audit findings increases from the amount used in planning, the auditor should consider whether the audit plan needs to be modified. Typically, an increase in materiality levels would result in a decrease in audit risk, which would result in less substantive testing, not more. Choice â€Å"c† is incorrect. Qualitative considerations may lead to situations in which misstatements that do not exceed materiality limits are still likely to influence the economic decisions of users.In such cases, an otherwise immaterial misstatement is deemed to be material. 20 2007 AICPA Newl y Released Questions – Auditing 21. CPA-05485 As a result of tests of controls, an auditor assesses control risk too high. This incorrect assessment most likely occurred because: a. Control risk based on the auditor's sample is less than the true operating effectiveness of the client's control activity. b. The auditor believes that the control activity relates to the client's assertions when, in fact, it does not. c. The auditor believes that the control activity will reduce the extent of substantive testing when, in fact, it will not. . Control risk based on the auditor's sample is greater than the true operating effectiveness of the client's control activity. ANSWER: Choice â€Å"d† is correct. The risk of assessing control risk too high is the risk that the assessed level of control risk based on the sample is greater than the true risk based on the actual operating effectiveness of the control. Choice â€Å"a† is incorrect. The risk of assessing control risk too low is the risk that the assessed level of control risk based on the sample is less than the true risk based on the actual operating effectiveness of the control.Choice â€Å"b† is incorrect. Assessing control risk too high relates to an incorrect evaluation of risk by the auditor, not to whether the control activity relates to the client's assertions. Choice â€Å"c† is incorrect. If the auditor believes that a control activity will reduce the extent of substantive testing when, in fact, it will not, this implies that the control risk based on the auditor's sample was less than the true risk based on the actual operating effectiveness of the control. This would be an example of assessing control risk too low, not too high. 21 007 AICPA Newly Released Questions – Auditing 22. CPA-05486 At the conclusion of an audit, an auditor is reviewing the evidence gathered in support of the financial statements. With regard to the valuation of inventory, the auditor co ncludes that the evidence obtained is not sufficient to support management's representations. Which of the following actions is the auditor most likely to take? a. b. c. d. Consult with the audit committee and issue a disclaimer of opinion. Consult with the audit committee and issue a qualified opinion. Obtain additional evidence regarding the valuation of inventory.Obtain a statement from management supporting their inventory valuation. ANSWER: Choice â€Å"c† is correct. If an auditor has doubts about a material assertion (such as the valuation of inventory), he/she should gather sufficient evidence to eliminate the doubt. Choices â€Å"a† and â€Å"b† are incorrect. The auditor would not consult with the audit committee regarding the sufficiency of audit evidence obtained, as this is determined based on the auditor's own judgment. In addition, if the auditor is able to obtain additional evidence, it might be possible to issue an unqualified opinion.Finally, e ven if no additional evidence is available, the auditor will still need to decide whether a qualified opinion or a disclaimer of opinion is more appropriate, depending on materiality. Choice â€Å"d† is incorrect. Since management representations are in fact â€Å"statements from management,† obtaining additional statements from management would not provide additional support. 22 2007 AICPA Newly Released Questions – Auditing 23. CPA-05487 An audit supervisor reviewed the work performed by the staff to determine if the audit was adequately performed. The supervisor accomplished this by primarily reviewing which of the following? a. b. c. d.Checklists. Working papers. Analytical procedures. Financial statements. ANSWER: Choice â€Å"b† is correct. Audit documentation, or working papers, comprises the principal record of audit procedures performed, evidence obtained, and conclusions reached. Reviewing the working papers allows a supervisor to understand the work performed and the evidence obtained, and to evaluate whether the audit was adequately performed. Choice â€Å"a† is incorrect. Checklists might be used within the audit documentation, but checklists alone would not provide a comprehensive record of the audit procedures performed, the evidence obtained, and conclusions reached.Choice â€Å"c† is incorrect. Analytical procedures might be documented within the working papers, but such procedures alone would not provide a comprehensive record of the audit procedures performed, the evidence obtained, and conclusions reached. Choice â€Å"d† is incorrect. Reviewing the financial statements would provide no information regarding the audit procedures performed, the evidence obtained, or conclusions reached, and therefore would provide no basis on which to review the work performed by the staff. 23 2007 AICPA Newly Released Questions – Auditing 24.CPA-05488 The auditor's inventory observation test counts are traced to the client's inventory listing to test for which of the following financial statement assertions? a. b. c. d. Completeness. Rights and obligations. Allocation and valuation. Understandability and classification. ANSWER: Choice â€Å"a† is correct. The auditor should test the physical inventory report by tracing test counts taken by the auditor to the report, thereby verifying its completeness. Choice â€Å"b† is incorrect. Tracing from test counts to the client's inventory listing does not test rights and obligations.Rights and obligations might be tested by examining paid vendors' invoices, inspecting consignment agreements and contracts, or by confirming inventory held at outside locations. Choice â€Å"c† is incorrect. Tracing from test counts to the client's inventory listing does not test allocation and valuation. Allocation and valuation might be tested by examining paid vendors' invoices, evaluating direct labor rates, recalculating overhead ra tes, or examining an analysis of inventory turnover. Choice â€Å"d† is incorrect. Tracing from test counts to the client's inventory listing does not test understandability and classification.Understandability and classification might be tested by confirming inventories pledged under loan agreements, examining drafts of the financial statements for appropriate balance sheet classification, etc. 24 2007 AICPA Newly Released Questions – Auditing 25. CPA-05489 Which of the following is an analytical procedure that an auditor most likely would perform when planning an audit? a. b. c. d. Confirming bank balances with the financial institutions. Scanning accounts receivable for amounts over credit limits. Recalculating inventory extensions of physical inventory counts.Comparing the current-year account balances for conformity with predictable patterns. ANSWER: Choice â€Å"d† is correct. During planning, analytical procedures consist of a review of data aggregated at a high level, with an objective of enhancing the auditor's understanding of the client. Comparing the current-year account balances for conformity with predictable patterns would fulfill this purpose. Choice â€Å"a† is incorrect. Confirmation of bank balances is a substantive audit procedure (not an analytical procedure) that would be performed during the fieldwork stage of the audit. Choice â€Å"b† is incorrect.Scanning accounts receivable for amounts over credit limits is a detailed procedure related to one specific account, and it would be performed during the fieldwork stage of the audit. Choice â€Å"c† is incorrect. Recalculating inventory extensions of physical inventory counts is a detailed procedure related to one specific account, and it would be performed during the fieldwork stage of the audit. 25 2007 AICPA Newly Released Questions – Auditing 26. CPA-05490 In which of the following circumstances is substantive testing of accounts receivabl e before the balance sheet date most appropriate? . b. c. d. The client has a new sales incentive program in place. Internal controls during the remaining period are effective. There is a high turnover of senior management. It is a first engagement of a new client. ANSWER: Choice â€Å"b† is correct. The higher the auditor's risk assessment, the closer to period end substantive procedures should be performed. Conversely, effective controls reduce control risk and reduce the risk of material misstatement, allowing more interim testing to occur. Choice â€Å"a† is incorrect.A new sales incentive program results in an increase in the risk of material misstatement, making it less likely that interim testing will be performed. Choice â€Å"c† is incorrect. High turnover of senior management results in an increase in the risk of material misstatement, making it less likely that interim testing will be performed. Choice â€Å"d† is incorrect. In the first engage ment of a new client, the auditor will have less knowledge of the client and therefore would be less inclined to utilize interim testing, which increases audit risk. 26 2007 AICPA Newly Released Questions – Auditing 27.CPA-05491 An auditor reads the letter of transmittal accompanying a county's comprehensive annual financial report and identifies a material inconsistency with the financial statements. The auditor determines that the financial statements do not require revision. Which of the following actions should the auditor take? a. b. c. d. Request that the client revise the letter of transmittal. Include an explanatory paragraph in the auditor's report. Consider withdrawing from the engagement. Request a client representation letter acknowledging the inconsistency. ANSWER: Choice â€Å"a† is correct.When information accompanies audited financial statements in a client-prepared document, the auditor is required to read the information. If such information is materi ally inconsistent with the financial statements and the financial statements do not require revision, the auditor should request that the information (in this case the letter of transmittal) be revised. Choice â€Å"b† is incorrect. The auditor would only revise the report to include discussion of the material inconsistency if the client were unwilling to revise the transmittal letter appropriately. Choice â€Å"c† is incorrect.The auditor would only consider withdrawing from the engagement if the client were unwilling to revise the transmittal letter appropriately. Choice â€Å"d† is incorrect. The auditor would not request a client representation letter acknowledging the inconsistency, as correction (and not simply acknowledgment) of the error is desired. 27 2007 AICPA Newly Released Questions – Auditing 28. CPA-05492 An analysis of which of the following accounts would best aid in verifying that all fixed assets have been capitalized? a. b. c. d. Cash. Depreciation expense. Property tax expense. Repairs and maintenance.ANSWER: Choice â€Å"d† is correct. An analysis of the repairs and maintenance account would best aid the auditor in verifying that all fixed assets have been capitalized. This account is generally analyzed to test for completeness of asset additions (i. e. , the auditor is looking for items recorded as repairs or maintenance that would more properly have been capitalized as betterment of an asset). Choice â€Å"a† is incorrect. An analysis of cash would not identify fixed assets that were not properly capitalized, since cash would be paid for the purchase regardless of whether the item were expensed or capitalized.Choice â€Å"b† is incorrect. An analysis of depreciation expense would not identify fixed assets that were not properly capitalized, since no depreciation would be included for items not already classified as assets. Choice â€Å"c† is incorrect. An analysis of property tax e xpense would not identify fixed assets that were not properly capitalized, since no property tax would be included for items not already classified as assets. 28 2007 AICPA Newly Released Questions – Auditing 29. CPA-05493 When companies use information technology (IT) extensively, evidence may be available only in electronic form.What is an auditor's best course of action in such situations? a. b. c. d. Assess the control risk as high. Use audit software to perform analytical procedures. Use generalized audit software to extract evidence from client databases. Perform limited tests of controls over electronic data. ANSWER: Choice â€Å"c† is correct. When companies use information technology (IT) extensively and evidence is available only in electronic form, generalized audit software packages generate the programs necessary to interrogate the files and extract and analyze the data. Choice â€Å"a† is incorrect.The use of information technology does not automat ically imply that control risk is high. The auditor would need to evaluate the client's controls to make this determination. Choice â€Å"b† is incorrect. Although audit software might be used to perform analytical procedures, the data would first need to be extracted from the client's system. A generalized audit software package is the best way to do this. Choice â€Å"d† is incorrect. If information technology is used extensively, the auditor would likely perform more than limited tests of controls over electronic data. 29 2007 AICPA Newly Released Questions – Auditing 30.CPA-05494 The ultimate purpose of assessing control risk is to contribute to the auditor's evaluation of the risk that: a. b. c. d. Specific internal control activities are not operating as designed. The collective effect of the control environment may not achieve the control objectives. Tests of controls may fail to identify activities relevant to assertions. Material misstatements may exist in the financial statements. ANSWER: Choice â€Å"d† is correct. The auditor's ultimate purpose assessing control risk is to evaluate the risk of financial statement misstatement.Choice â€Å"a† is incorrect. The auditor's evaluation of whether or not specific internal control activities are operating as designed is part of his/her assessment of control risk; however, the ultimate purpose of making this assessment is to evaluate the risk of financial statement misstatement. Choice â€Å"b† is incorrect. The auditor's evaluation of the collective effect of the control environment is part of his/her assessment of control risk; however, the ultimate purpose of making this assessment is to evaluate the risk of financial statement misstatement. Choice â€Å"c† is incorrect.Tests of controls are not used to identify activities relevant to assertions. Tests of controls are used to evaluate the operating effectiveness of internal control in preventing or detecti ng material misstatements. 30 2007 AICPA Newly Released Questions – Auditing 31. CPA-05495 After making inquiries about credit granting policies, an auditor selects a sample of sales transactions and examines evidence of credit approval. This test of controls most likely supports management's financial statement assertion(s) of: Rights and obligations Yes Yes No No Allocation and valuation Yes No Yes No a. b. c. d. ANSWER: Choice â€Å"c† is correct.By ensuring that credit approval is obtained before goods are shipped to customers, the auditor is testing management's assertion that accounts receivable are collectible (allocation and valuation). Ensuring that credit approval is obtained before goods are shipped does not support the rights and obligations assertion. Choices â€Å"a†, â€Å"b†, and â€Å"d† are incorrect, based on the above explanation. 31 2007 AICPA Newly Released Questions – Auditing 32. CPA-05496 Which of the following chara cteristics most likely would be an advantage of using classical variables sampling rather than probability-proportional-to-size (PPS) sampling? . b. c. d. The selection of negative balances requires no special design considerations. The sampling process can begin before the complete population is available. The auditor need not consider the preliminary judgments about materiality. The sample will result in a smaller sample size if few errors are expected. ANSWER: Choice â€Å"a† is correct. Inclusion of negative balances requires special design considerations with PPS sampling, but it does not require special design considerations with classical variables sampling. Choice â€Å"b† is incorrect.All items in the population should have an equal chance to be included in the sample. Therefore, the sampling process should not begin before the complete population is available, regardless of whether classical variables sampling or PPS sampling is used. Choice â€Å"c† i s incorrect. When planning a particular sample for a substantive test of details, the auditor should consider preliminary estimates of materiality. Choice â€Å"d† is incorrect. If no errors are expected, PPS sampling generally requires a smaller sample than other methods. 32 2007 AICPA Newly Released Questions – Auditing 33.CPA- 05497 Which of the following matters is an auditor required to communicate to those charged with governance? a. Adjustments that were suggested by the auditor and recorded by management that have a significant effect on the entity's financial reporting process. b. The auditor's consideration of risk factors in assessing the risk of material misstatement arising from the misappropriation of assets. c. The results of the auditor's analytical procedures performed in the review stage of the engagement that indicate significant variances from expected amounts. d.Changes in the auditor's preliminary judgment about materiality that were caused by pro jecting the results of statistical sampling for tests of transactions. ANSWER: Choice â€Å"a† is correct. The auditor is required to communicate significant audit findings to those charged with governance. Significant audit findings include material, corrected misstatements brought to management's attention as a result of the audit. Unless all of those charged with governance are also involved with managing the entity, such findings should be communicated by the auditor. Choice â€Å"b† is incorrect.The auditor is not required to communicate with those charged with governance regarding his/her fraud risk assessment. Choice â€Å"c† is incorrect. The auditor is not required to communicate with those charged with governance regarding the results of specific audit procedures. Choice â€Å"d† is incorrect. The auditor is not required to communicate with those charged with governance regarding changes to his/her preliminary judgment about materiality. 33 2007 AICPA Newly Released Questions – Auditing 34. CPA-05498 For which of the following audit tests would a CPA most likely use attribute sampling? . b. c. d. Identifying entries posted to incorrect accounts. Estimating the amount in an expense account. Evaluating the reasonableness of depreciation expense. Selecting receivables for confirmation of account balances. ANSWER: Choice â€Å"a† is correct. Attribute sampling is used to estimate a rate of occurrence, and often involves a yes-no question. Attribute sampling could be used to determine the error rate in posting journal entries, perhaps by asking, â€Å"Is the entry posted to the proper account? † Choice â€Å"b† is incorrect.Variables sampling is typically used to estimate a numerical quantity, such as the amount in an expense account. Choice â€Å"c† is incorrect. Variables sampling is typically used to estimate a numerical quantity, such as a reasonable amount for depreciation expense. Choice â€Å"d† is incorrect. Attribute sampling is used to estimate a rate of occurrence, not to select the items to include in a sample. 34 2007 AICPA Newly Released Questions – Auditing 35. CPA-05499 Which of the following strategies most likely could improve the response rate of the confirmations of accounts receivable? a. b. c. d.Restrict the selection of accounts to be confirmed to those customers with large balances. Include a list of items or invoices that constitute the customers' account balances. Explain to customers that discrepancies will be investigated by an independent third party. Ask customers to respond to the confirmation requests directly to the auditor by fax. ANSWER: Choice â€Å"b† is correct. The auditor should consider the types of information respondents will be readily able to confirm. For instance, some accounting systems facilitate the confirmation of single transactions rather than entire balances.In such cases, the auditor might conside r including a client-prepared statement of account showing details of the customer's account balance being confirmed. By making it easier for customers to determine which items are included in the balance being confirmed, the auditor also makes it more likely that those customers will respond. Choice â€Å"a† is incorrect. Restricting the selection of accounts to be confirmed to those customers with large balances doesn't improve response rates, as customers with large balances are not necessarily more likely to respond than customers with small balances.Choice â€Å"c† is incorrect. Explaining to customers that discrepancies will be investigated by an independent third party would not necessarily encourage them to respond, as they might be reluctant to set off this investigation. Choice â€Å"d† is incorrect. Responses received by fax should be verified by calling the senders and requesting that the original confirmations be mailed back. Asking customers to res pond by fax might actually reduce the response rate for receiving the original confirmation, since customers may decide that since they already sent the fax, they don't need to send the original back as well. 5 2007 AICPA Newly Released Questions – Auditing 36. CPA-05500 Which of the following procedures would an auditor most likely perform in auditing the statement of cash flows? a. Reconcile the amounts included in the statement of cash flows to the other financial statements' amounts. b. Vouch a sample of cash receipts and disbursements for the last few days of the current year. c. Reconcile the cutoff bank statement to the proof of cash to verify the accuracy of the year-end cash balance. d. Confirm the amounts included in the statement of cash flows with the entity's financial institution.ANSWER: Choice â€Å"a† is correct. To audit the statement of cash flows, the auditor reconciles the amounts on the statement to amounts on other financial statements. Choice â⠂¬Å"b† is incorrect. Vouching a sample of cash receipts and disbursements is a procedure used to audit the cash balance, rather than the statement of cash flows. Choice â€Å"c† is incorrect. Reconciling the cutoff bank statement to the proof of cash to verify the accuracy of the year-end cash balance is a procedure used to audit the cash balance, rather than the statement of cash flows. Choice d† is incorrect. Confirming cash amounts with the entity's financial institution is a procedure used to audit the cash balance, rather than the statement of cash flows. 36 2007 AICPA Newly Released Questions – Auditing 37. CPA-05501 In establishing the existence and ownership of long-term investments in the form of publicly-traded stock, an auditor most likely would inspect the securities or: a. b. c. d. Correspond with the investee company to verify the number of shares owned. Confirm the number of shares owned that are held by an independent custodian.Apply analyti cal procedures to the dividend income and investments accounts. Inspect the cash receipts journal for amounts that could represent the sale of securities. ANSWER: Choice â€Å"b† is correct. Confirmations should be requested from the custodian for securities that are in the possession of third parties. Choice â€Å"a† is incorrect. The investee company may not have timely information regarding the ownership of its stock, nor would an investee typically want to correspond with all of its shareholders in this manner.Choice â€Å"c† is incorrect. Analytical procedures might be used to test the reasonableness of dividend income, but this would not provide evidence about the existence and ownership of the investments. Choice â€Å"d† is incorrect. Inspecting the cash receipts journal for amounts that could represent the sale of securities might provide evidence regarding sales (and gains or losses on sales), but would not provide evidence about the existence a nd ownership of the investments. 37 2007 AICPA Newly Released Questions – Auditing 38.CPA-05502 The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity should state that: a. A review is limited to presenting in the form of financial statements information that is the representation of management. b. A review consists of inquiries of company personnel and analytical procedures applied to financial data. c. The accountant does not express an opinion or any other form of assurance on the financial statements. d. The accountant did not obtain an understanding of the entity's internal control or assess control risk. ANSWER: Choice â€Å"b† is correct.The standard report issued by an accountant after reviewing the financial statements of a nonpublic entity states that a review consists of inquiries of company personnel and analytical procedures applied to financial data. Choice â€Å"a† is incorrect. A compilation rep ort uses language similar to this, stating that a compilation is limited to presenting, in the form of financial statements, information that is the representation of management. Choice â€Å"c† is incorrect. A compilation report uses language similar to this, stating that the accountant does not express an opinion or any other form of assurance on the financial statements.A review provides negative assurance. Choice â€Å"d† is incorrect. While it is true that a review of the financial statements of a nonpublic entity does not require the accountant to obtain an understanding of the entity's internal control or assess control risk, the report does not explicitly state this. 38 2007 AICPA Newly Released Questions – Auditing 39. CPA-05503 When an accountant compiles projected financial statements, the accountant's report should include a separate paragraph that: a. b. c. d. Explains the difference between a compilation and a review.Documents the assessment of the risk of material misstatement due to fraud. Expresses limited assurance that the actual results may be within the projected range. Describes the limitations on the projection's usefulness. ANSWER: Choice â€Å"d† is correct. The accountant's report on compiled projected financial statements should include a separate paragraph that describes the limitations on the projection's usefulness. For example, the paragraph states that there will usually be differences between projected and actual results, and indicates that the accountant has no responsibility o update the report for events occurring after the date of the report. Choice â€Å"a† is incorrect. The accountant's report on compiled projected financial statements does not include an explanation of the difference between a compilation and a review. Choice â€Å"b† is incorrect. The accountant's report on compiled projected financial statements does not document the assessment of the risk of material misstatem ent due to fraud. Choice â€Å"c† is incorrect. The accountant's report on compiled projected financial statements does not express limited assurance that the actual results may be within the projected range.In fact, it specifically states that no opinion or any other form of assurance is expressed, and that there usually will be differences between projected and actual results. 39 2007 AICPA Newly Released Questions – Auditing 40. CPA-05504 (Adapted) An auditor intends to use the work of an actuary who has a relationship with the client. Under these circumstances, the auditor: a. b. c. d. Is required to disclose the contractual relationship in the auditor's report. Should assess the risk that the actuary's objectivity might be impaired. Is not permitted to rely on the actuary because of a lack of independence.Should communicate this matter to those charged with governance as a significant deficiency in internal control. ANSWER: Choice â€Å"b† is correct. While a specialist who is unrelated to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. In such situations, the auditor would likely perform additional procedures to verify objectivity. Choice â€Å"a† is incorrect. If the auditor is expressing a standard unqualified opinion, no reference would be made to the specialist in the auditor's report.Choice â€Å"c† is incorrect. While a specialist who is unrelated to the client will provide the auditor with greater assurance of reliability, a specialist who is related to the client may be acceptable in certain circumstances. Choice â€Å"d† is incorrect. The fact that the actuary has a relationship with the client is not considered to be a significant deficiency in internal control. 40 2007 AICPA Newly Released Questions – Auditing 41. CPA-05505 Before applying principal substantive tests to an entity's ac counts receivable at an interim date, an auditor should: a. b. c. d.Consider the likelihood of assessing the risk of incorrect rejection too low. Project sampling risk at the maximum for tests covering the remaining period. Ascertain that accounts receivable are immaterial to the financial statements. Assess the difficulty in controlling the incremental audit risk. ANSWER: Choice â€Å"d† is correct. When audit procedures are performed before year-end, the auditor must assess the incremental risk involved and determine whether sufficient alternative procedures exist to extend the interim conclusions to year-end. Choice â€Å"a† is incorrect.The risk of incorrect rejection relates to the efficiency of audit testing, since an item that is initially (and erroneously) rejected will be subject to additional audit testing that should correct the error. The likelihood of assessing this risk lower than it should be does not affect the auditor's decision regarding the appropria te timing of audit work. Choice â€Å"b† is incorrect. When audit procedures are performed before year-end, the auditor must assess the incremental risk involved, but this risk would not necessarily be assessed at the maximum level. Choice â€Å"c† is incorrect.Interim testing may be performed on material accounts, as long as the auditor assesses the incremental risk involved and determines whether sufficient alternative procedures exist to extend the interim conclusions to year-end. Immaterial accounts would not need to be tested. 41 2007 AICPA Newly Released Questions – Auditing 42. CPA-05506 (Adapted) Which of the following procedures would a CPA most likely perform in the planning stage of a financial statement audit? a. b. c. d. Obtain representations from management regarding the availability of all financial records.Communicate with those charged with governance concerning the prior year's audit adjustments. Make inquiries of the client's attorney regardi ng pending and threatened litigation and assessments. Compare recorded financial information with anticipated results from budgets and forecasts. ANSWER: Choice â€Å"d† is correct. The planning process should include application of analytical procedures, such as comparison of the financial statements with budgeted or anticipated results. Choice â€Å"a† is incorrect. Management representations are typically obtained at the end of the audit, not during the planning stage. Choice â€Å"b† is incorrect.Assuming all of those charged with governance are not also involved with managing the entity, the auditor is required to communicate with those charged with governance concerning adjustments arising from the current year's audit, not adjustments from the previous year. Choice â€Å"c† is incorrect. Inquiries are typically made of the client's attorney during the fieldwork stage of the audit, not during the planning stage. 42 2007 AICPA Newly Released Question s – Auditing 43. CPA-05507 A CPA is engaged to examine management's assertion that the entity's schedule of investment returns is presented in accordance with specific criteria.In performing this engagement, the CPA should comply with the provisions of: a. b. c. d. Statements on Standards for Accounting and Review Services (SSARS). Statements on Auditing Standards (SAS). Statements on Standards for Consulting Services (SSCS). Statements on Standards for Attestation Engagements (SSAE). ANSWER: Choice â€Å"d† is correct. Statements on Standards for Attestation Engagements apply to engagements in which a practitioner is engag