Upgrade to remove ads
Audit Quiz 1
Terms in this set (22)
Competence as an independent auditor includes all of the following except
Warranting the infallibility of the work performed. The auditor is not a guarantor. The auditor's responsibility is to express (or disclaim) an opinion on whether the financial statements, taken as a whole, are presented fairly. The audit is planned and performed to provide reasonable, but not absolute, assurance that the financial statements are not materially misstated.
A misstatement in the financial statements from error or fraud that is judged to be important enough to be material.
Such inconsistencies that arise due to conflict between the information included in other information and information contained in the financial statements and such consistencies has raised doubts in the mind of auditor about the audit conclusions drawn from audit evidence previously obtained and, possibly, about the basis for the auditor's opinion on the financial statements.
system of quality control
The policies and procedures implemented by a firm to provide with reasonable assurance that the firm and its personnel (1) comply with professional standards and applicable regulatory and legal requirements and (2) issue reports that are appropriate in the circumstances.
system of peer review
statements of auditing standards
A review of the interim financial information of a publicly held company is conducted in accordance with ?
International Auditing standards
committee of the International Federation of Accountants, established to issue standards on auditing and reporting practices to improve the degree of uniformity of auditing practices and related services throughout the world
American institute of CPAs.
Integrity & Objectivity
. In performance of ANY professional service, a member shall maintain objectivity & integrity, avoid conflicts of interest & not knowingly misrepresent facts
AICPAs Performance principles
Public Company Accounting Oversight Board PCAOB
Specific acts performed by the auditor in gathering evidence to determine if specific assertions are being met.
the opinion issued when the auditors conclude that the financial statements do not present the financial condition, results of operations, and cash flows in accordance with GAAP
Commonly referred to simply as a Disclaimer, is issued when the auditor could not form, and consequently refuses to present, an opinion on the financial statements because the records are in such poor condition.
Financial statements conform to GAAP
Unqualified with explanatory language
- auditors comfort with fair presentation of FS, but nevertheless calls attention to an important matter that could affect users' interpretation of the financial statements
An opinion issued when the auditors conclude that the financial statements present the financial condition, results of operations, and cash flows in accordance with GAAP (until recently, known as an unqualified opinion).
AICPA Code of Professional Conduct
Applicable to all AICPA members. Compliance depends on (1) members' actions (2) peer reinforcement, public opinion, disciplinary proceedings
AICPA Independence Standards
Statements on Auditing Standards
YOU MIGHT ALSO LIKE...
Audit Ch. 2
ACC 5400 (Chapter 2 Definitions)
OTHER SETS BY THIS CREATOR
Real Estate Final Exam
Audit Midterm Exam
Real Estate Exam 1
Financial Institutions Quiz 1