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Study sets matching "auditing statement"

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Study sets matching "auditing statement"

12 terms
CPA audit Financial Statement Audits
Identify the 7 principles underlying a…
Identify the 2 types of professional r…
Understand the role of guidance associ…
Describe the relationship of GAAS to t…
The 7 principles are organized around 4 primary themes—(1) pu…
"Unconditional requirements" -- Must comply with the requirem…
"Interpretive publications" -- Consist of the appendices to t…
An individual audit engagement is governed by GAAS, whereas a…
Identify the 7 principles underlying a…
The 7 principles are organized around 4 primary themes—(1) pu…
Identify the 2 types of professional r…
"Unconditional requirements" -- Must comply with the requirem…
14 terms
AUDITING FINANCIAL STATEMENTS
financial statements
external auditor
internal auditor
Certified Public Accountant
sprawozdanie finansowe
audytor zewnętrzny
audytor wewnętrzny
biegły rewident księgowy
financial statements
sprawozdanie finansowe
external auditor
audytor zewnętrzny
10 terms
Financial Statement Auditing Terms
Audit Risk
Materiality
Reasonable Assurance
Unqualified/unmodified audit report
The risk that the auditor expresses an inappropriate audit op…
The maximum amount by which the auditor believes the financia…
The concept that an audit done in accordance with auditing st…
A "clean" audit report, indicating the auditor's opinion that…
Audit Risk
The risk that the auditor expresses an inappropriate audit op…
Materiality
The maximum amount by which the auditor believes the financia…
39 terms
Financial Statement Auditing Environment
External Auditors
Internal Auditors
Government Auditors
Forensic Auditors
Independent auditors (not employees of the entity); education…
Employees from within the entity; Independent, objective assu…
Employed by federal, state, and local agencies; compliance wi…
Detect, investigate, and deter fraud and white-collar crime;…
External Auditors
Independent auditors (not employees of the entity); education…
Internal Auditors
Employees from within the entity; Independent, objective assu…
20 terms
CPA: AUDITING: Financial Statement Audits (All sections)
Representations of management
Generally Accepted Accounting Principl…
Generally Accepted Auditing Standards…
Auditor's Primary Role
What do Financial Statements represent?
The standards by which the quality of the financial statement…
The standards by which the quality of the auditor's performan…
To provide an impartial (independent) assessment of the relia…
Representations of management
What do Financial Statements represent?
Generally Accepted Accounting Principl…
The standards by which the quality of the financial statement…
30 terms
Chapter 4 The Financial Statement Audit
Accounting estimates
Analytical procedures
Audit committee
Audit risk
The approximation of financial statement numbers often includ…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
Accounting estimates
The approximation of financial statement numbers often includ…
Analytical procedures
The reasonableness tests used to gain an understanding of fin…
36 terms
[1] Financial Statement Audits
Reporting entities and applicable stan…
Generally Accepted Auditing Standards-…
GAAS Standards- traditional (PCAOB)
General Standards
1. Governmental entities follow GAGAS (Generally Accepted Gov…
1. AICPA's (clarified auditing standards): the pronouncements…
A) General Standards [TID]... 1. Training 2. Independence 3. Due…
Relate to "personal" qualities that the auditor brings to the…
Reporting entities and applicable stan…
1. Governmental entities follow GAGAS (Generally Accepted Gov…
Generally Accepted Auditing Standards-…
1. AICPA's (clarified auditing standards): the pronouncements…
18 terms
audit ch 2: the financial statement auditing environment
integrated audit
professional skepticism
corporate governance
board of directors
an audit of both financial statements and internal control ov…
an attitude that includes a questioning mind and a critical a…
the oversight mechanisms in place to help ensure the proper s…
persons elected by the stockholders of a corporation to overs…
integrated audit
an audit of both financial statements and internal control ov…
professional skepticism
an attitude that includes a questioning mind and a critical a…
78 terms
AUD - Financial Statement Audits
What risk drives the need for audits?
In regards to the communication of fin…
Accounting focuses on the _______ & __…
Purpose of an audit
Information risk
Management must prepare and communicate information (F/S) to…
Preparation... Distribution
Provide F/S users with an opinion on F/S
What risk drives the need for audits?
Information risk
In regards to the communication of fin…
Management must prepare and communicate information (F/S) to…
28 terms
Financial Statement Audits
generally accepted auditing standards
An auditor may draft an entity's finan…
accounting standard setting bodies
audit standard setting bodies
The Statements on Auditing Standards issued by the Auditing S…
it is an SEC regulated company - prohibited from drafting AND…
1. GAAP... 2. FASB (businesses)... 3. GASB (state & local govt)... 4.…
1. ASB (GAAS - nonissuers / private)... 2. PCAOB (issuers / publ…
generally accepted auditing standards
The Statements on Auditing Standards issued by the Auditing S…
An auditor may draft an entity's finan…
it is an SEC regulated company - prohibited from drafting AND…
28 terms
Financial Statement Audit Reporting
When can a scope limitation be unquali…
An error correction is reported as
a change in classification is reported…
a change in accounting estimate is rep…
1. analytical procedures or... 2. immaterial
unqualified
unqualified
unqualified
When can a scope limitation be unquali…
1. analytical procedures or... 2. immaterial
An error correction is reported as
unqualified
24 terms
Financial Statement Audits
Purpose of an audit
FASAB, Federal Accounting Standards Ad…
GASB
FASB
Provide financial statement users an opinion by the auditor o…
Accounting pronouncements that the federal governmental entit…
Accounting pronouncements that state and local governmental e…
Accounting pronouncements that other entities, such as corpor…
Purpose of an audit
Provide financial statement users an opinion by the auditor o…
FASAB, Federal Accounting Standards Ad…
Accounting pronouncements that the federal governmental entit…
16 terms
AUD: Financial Statement Audit
generally accepted auditing standards…
The AICPA's prior generally accepted a…
Define exercising due care
What is the term that identifies a req…
...
General Standards, Standards of Field Work, and the Standards…
To require "critical review" of the work performed and the au…
Appropriate
generally accepted auditing standards…
...
The AICPA's prior generally accepted a…
General Standards, Standards of Field Work, and the Standards…
32 terms
Auditing CH 2 - The Financial Statement Auditing Environment
External auditor
State requirements for CPA certificati…
Internal auditors
Government auditors
independent auditors who are not employees of the entity bein…
—Education, Examination, and Experience.
Auditors who are employees of individual companies, partnersh…
auditors employed by federal, state, and local agencies.
External auditor
independent auditors who are not employees of the entity bein…
State requirements for CPA certificati…
—Education, Examination, and Experience.
12 terms
Auditing- CH 2 The financial statement auditing environment
State requirement for CPA certificatio…
According to the AICPA, "the purpose o…
The CPA examination has a total length…
Auditors who are employees of individu…
Education, Examination, and Experience
Provide reasonable assurance to Boards of Accountancy that th…
Auditing and Attestation (AUD), Financial Accounting and Repo…
Internal Auditors
State requirement for CPA certificatio…
Education, Examination, and Experience
According to the AICPA, "the purpose o…
Provide reasonable assurance to Boards of Accountancy that th…
11 terms
Audits of Group Financial Statements
What do AICPA professional standards i…
Define "component"
Define "component auditor"
Define "group financial statements"
1. Determine whether to act as the auditor of the group finan…
- an ENTITY for which group or component management prepares…
- who performs work on financial info of a component that wil…
- F/S's that include the financial info of more than one comp…
What do AICPA professional standards i…
1. Determine whether to act as the auditor of the group finan…
Define "component"
- an ENTITY for which group or component management prepares…
8 terms
Audits of group financial statements
Component
Component auditor
Group financial statements
Making reference to the component audi…
Is an entity or business activity that prepares financial sta…
Component that will be used as an audit evidence for the grou…
Our financial statements that include the financial informati…
Reference to the convoy auditor should not be made unless the…
Component
Is an entity or business activity that prepares financial sta…
Component auditor
Component that will be used as an audit evidence for the grou…
34 terms
Audit Chapter 2: The Financial Statement Auditing Environment
Types of auditors
Institute of Internal Auditors (IIA)
How does the IIA define internal audit…
Other audit services
external, internal, government, and forensic
the primary organization supporting internal auditors; missio…
an independent, objective assurance and consulting activity d…
Internal control audits... Compliance audits... Operational audits…
Types of auditors
external, internal, government, and forensic
Institute of Internal Auditors (IIA)
the primary organization supporting internal auditors; missio…
11 terms
Audited Financial Statements: The Basics
purpose of an audit?
what is the applicable financial repor…
what is a fair presentation framework?
what does an audit function add to the…
provide users with opinion on whether the financial statement…
-framework that is acceptable in view of the nature of the en…
-requires compliance with the requirements of the framework... -…
credibility... -independent of management, has objective view
purpose of an audit?
provide users with opinion on whether the financial statement…
what is the applicable financial repor…
-framework that is acceptable in view of the nature of the en…
76 terms
Audit Test 1 Financial Statement Audit
Assurance Services
Attest Services
Audit Services
Audit Evidence
Large blanket term for any service where a professional helps…
A service where a professional simply issues a report on a su…
Most specific type of service we cover. 1. obtain evidence th…
All information used by an auditor to arrive at whatever conc…
Assurance Services
Large blanket term for any service where a professional helps…
Attest Services
A service where a professional simply issues a report on a su…
105 terms
Auditing: Reports on Audited Financial Statements
For an entity's financial statements t…
When disclaiming an opinion because of…
Under U.S. auditing standards, when an…
Under U.S. auditing standards, when an…
include an adequate description of the framework in the finan…
Auditor's Responsibility Paragraph
the conditions that gave rise to the substantial doubt, the a…
management's conclusion regarding whether substantial doubt r…
For an entity's financial statements t…
include an adequate description of the framework in the finan…
When disclaiming an opinion because of…
Auditor's Responsibility Paragraph
30 terms
Chapter 4 The Financial Statement Audit
Accounting estimates
Analytical procedures
Audit committee
Audit risk
The approximation of financial statement numbers often includ…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
Accounting estimates
The approximation of financial statement numbers often includ…
Analytical procedures
The reasonableness tests used to gain an understanding of fin…
18 terms
Audit Chapter 18: Reports on Audited Statements
Standard unqualified Audit Report .
Report on Financial statements and rep…
ASB report for nonpublic companies
Explanatory language added to unmodifi…
1. title... 2. the addressee ... 3. the introductory paragraph ... 4.…
can be one report or two, if two the reports must have same d…
-uses "unmodified" instead of "unqualified" ... -ASB report adds…
-added to responsibility and opinion paragraph of report when…
Standard unqualified Audit Report .
1. title... 2. the addressee ... 3. the introductory paragraph ... 4.…
Report on Financial statements and rep…
can be one report or two, if two the reports must have same d…
The Financial Statement Auditing Environment - Chapter 9
Audit Committee
Board of directors
Business Processes
Code of Professional Conduct
A committee consisting of member's of the BOD charged with ov…
Persons elected by the stockholders of a corporation to overs…
Process implemented by management to achieve entity objective…
A set of principles, rules, and interpretations that establis…
Audit Committee
A committee consisting of member's of the BOD charged with ov…
Board of directors
Persons elected by the stockholders of a corporation to overs…
73 terms
Chapter 2: The financial statement auditing environment
audit committee
board of directors
business processes
code of professional conduct
part of the board of directors. tasked with the oversight of…
elected by the shareholders. to oversee management and to dir…
implemented by management to apply the strategy to reach obje…
principals, rules and interpretations that establish policy f…
audit committee
part of the board of directors. tasked with the oversight of…
board of directors
elected by the shareholders. to oversee management and to dir…
17 terms
Chapter 2: The Financial Statement Auditing Environment
Audit committee
Board of directors
Business process
Code of Professional Conduct
a committee consisting of members of the board of directors,…
persons elected by the stockholders of a corporation to overs…
processes implemented by management to achieve entity objecti…
set of principles, rules, and interpretations that establish…
Audit committee
a committee consisting of members of the board of directors,…
Board of directors
persons elected by the stockholders of a corporation to overs…
Ch. 2 - Financial Statement Auditing Environment
audit committee
BOD
business process
code of professional conduct
members of BOD, charged with overseeing the entity's system o…
persons elected by the stocholders of a corporation to overse…
processes implemented by management to achieve entity objecti…
a set of principles, rules, and interpretations that establis…
audit committee
members of BOD, charged with overseeing the entity's system o…
BOD
persons elected by the stocholders of a corporation to overse…
22 terms
Chapter 2: The Financial Statement Auditing Enviroment
External (Independent) auditors
Internal auditors
Government auditors
Forensic auditors
Not employees of the entity being audited ... - Audit FS for ent…
Employees of individual companies, government agencies, and o…
Auditors employed by the federal, state, and local government…
Employed by companies and governments to detect, investigate,…
External (Independent) auditors
Not employees of the entity being audited ... - Audit FS for ent…
Internal auditors
Employees of individual companies, government agencies, and o…
17 terms
Vocabulary - Chapter 2: The Financial Statement Auditing Environment
Audit committee
Board of directors
Business processes
Code of Professional Conduct
A committee consisting of members of the board of directors,…
Persons elected by the stockholders of a corporation to overs…
Processes implemented by management to achieve entity objecti…
A set of principles, rules, and interpretations that establis…
Audit committee
A committee consisting of members of the board of directors,…
Board of directors
Persons elected by the stockholders of a corporation to overs…
30 terms
Chapter 4 The Financial Statement Audit
Accounting estimates
Analytical procedures
Audit committee
Audit risk
The approximation of financial statement numbers often includ…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
Accounting estimates
The approximation of financial statement numbers often includ…
Analytical procedures
The reasonableness tests used to gain an understanding of fin…
35 terms
Audit Key Tasks and Knowledge Statements
Develop and implement a risk-based IT…
Develop and implement
Develop and implement
Develop and implement
Knowledge of ISACA IT Audit and Assurance Standards, Guidelin…
Knowledge of risk assessment concepts, tools, and techniques…
Knowledge of control objectives and controls related to infor…
Knowledge of applicable laws and regulations that affect the…
Develop and implement a risk-based IT…
Knowledge of ISACA IT Audit and Assurance Standards, Guidelin…
Develop and implement
Knowledge of risk assessment concepts, tools, and techniques…
30 terms
Chapter 4 The Financial Statement Audit
Accounting estimates
Analytical procedures
Audit committee
Audit risk
The approximation of financial statement numbers often includ…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
Accounting estimates
The approximation of financial statement numbers often includ…
Analytical procedures
The reasonableness tests used to gain an understanding of fin…
7 terms
Audit A1: Audited Financial Statements (The Basics)
Purpose of an Audit
Applicable Financial Reporting Framework
Fair Presentation Framework
Management Responsibilities
Provide users of FS with an opinion on:... 1. If FS are presente…
Needs to be acceptable in view of the nature of the entity an…
1. Requires compliance with the requirements of the framework…
1. Prepare and fairly present FS in accordance with the appli…
Purpose of an Audit
Provide users of FS with an opinion on:... 1. If FS are presente…
Applicable Financial Reporting Framework
Needs to be acceptable in view of the nature of the entity an…
9 terms
Audit Chapter 1 Intro to Assurance and Financial Statement Auditing
Auditing
Attest services
Assurance services
Materiality
systematic process of objectively obtaining and evaluating ev…
practitioner is engaged to issue a report on subject matter o…
independent professional services that improves the quality o…
amount by which a set of financial statements could be missta…
Auditing
systematic process of objectively obtaining and evaluating ev…
Attest services
practitioner is engaged to issue a report on subject matter o…
15 terms
Ch. 2 - The Financial Statement Auditing Environment
corporate governance
GAAS - PCAOB 3 Catergories
General Standards
Fieldwork Standard
Consists of all the people, processes, and activities in plac…
1. General Standards... 2. Fieldwork Standards... 3. Reporting
T - the audit is performed by a person or persons having adeq…
P - The work is to be adequately PLANNED and assistants, if a…
corporate governance
Consists of all the people, processes, and activities in plac…
GAAS - PCAOB 3 Catergories
1. General Standards... 2. Fieldwork Standards... 3. Reporting
23 terms
AUD Missed - Financial Statement Audits
Company Level Controls
Trust Service Engagement - TSP (Trust…
Due Care
GAAS requires ________ type of Audit E…
Ton at the Top... Managements risk assessment... Centralized proces…
BAS/SOC testing:... Security... Availability... Processing Integrity... C…
Critical Review of Judgment used @ every Lvl of Supervision (…
Appropriate (NOT Adequate nor Reasonable) - Things have to be…
Company Level Controls
Ton at the Top... Managements risk assessment... Centralized proces…
Trust Service Engagement - TSP (Trust…
BAS/SOC testing:... Security... Availability... Processing Integrity... C…
20 terms
Chapter 1: Introduction to Assurance and Financial Statement Auditing
Principals
Agent
Information asymmetry
Information risk
Absentee owner of a company
Managers hired by principals to run the corporation on a day…
Occurs when agents (managers) have more access to information…
Risk that information circulated by a company's management wi…
Principals
Absentee owner of a company
Agent
Managers hired by principals to run the corporation on a day…
12 terms
Reporting on the Financial Statement Audit
Unqualified Report for public Company…
Unmodified Report for a Non Public Com…
What are the 4 situations that require…
Changes Affecting Consistency
Title... Addressee... Introductory Paragraph... Scope Paragraph... Opinio…
Title... Addressee... Introductory Paragraph... Management's Responsib…
1. reference to the report on the audit of internal control f…
1. change in accounting principle... 2. change in reporting enti…
Unqualified Report for public Company…
Title... Addressee... Introductory Paragraph... Scope Paragraph... Opinio…
Unmodified Report for a Non Public Com…
Title... Addressee... Introductory Paragraph... Management's Responsib…
21 terms
Ch.2: The Financial Statement Auditing Environment
What are 4 types of auditors?
What is corporate governance?
What are the responsibilities of the a…
Who does the audit committee report to?
(1) External Auditors-... (2) Internal Auditors-... (3) Government…
A system to ensure that those managing an entity properly uti…
The audit committee hires/compensates the external auditor, o…
The investors!
What are 4 types of auditors?
(1) External Auditors-... (2) Internal Auditors-... (3) Government…
What is corporate governance?
A system to ensure that those managing an entity properly uti…
26 terms
Audit Managements Financial Statement Assertions
The CONFIRMATION of an account payable…
The audit objective that all the trans…
An auditor selected items from the cli…
The audit objective that all balances…
Existence
Existence or occurrence
existence
Rights and obligations
The CONFIRMATION of an account payable…
Existence
The audit objective that all the trans…
Existence or occurrence
9 terms
Chapter 2: The Financial Statement Auditing Environment
Types of auditors
Government Regulation
What is the context of financial state…
What kinds of companies do PCAOB ASB a…
1. External... 2. Internal... 3. Government... 4. Forensic
1. 2002 congress passed Sarbanes - oxley public company accou…
The industry or business of auditee
PCAOB: Public ... ASB: Nonpublic... IAASB: over 100 countries
Types of auditors
1. External... 2. Internal... 3. Government... 4. Forensic
Government Regulation
1. 2002 congress passed Sarbanes - oxley public company accou…
11 terms
Reports on Audited Financial Statements
4 Paragraphs of a Standard Report
Introductory Paragraph
Management's Responsibilities Paragraph
Auditor's Responsibilities Paragraph
1. Introductory paragraph... 2. Management Responsibilities Para…
states that an audit was performed and the specific financial…
states that management is responsible for preparing financial…
includes a statement on each of the following: the responsibi…
4 Paragraphs of a Standard Report
1. Introductory paragraph... 2. Management Responsibilities Para…
Introductory Paragraph
states that an audit was performed and the specific financial…
35 terms
Chapter 1 Intro to Assurance and Financial Statement Auditing
Auditing
History of Audit
Capital Market
Public Company
focusing on learning the analytical and logical skills necess…
happened during industrial revolution when companies became l…
allows a public company to sell small pieces of ownership (ST…
company that sells its stocks/bonds to the public, giving the…
Auditing
focusing on learning the analytical and logical skills necess…
History of Audit
happened during industrial revolution when companies became l…
35 terms
[1] AUD Financial Statement Audits
In the U.S.A, who issues auditing stan…
"Generally Accepted Accounting Princip…
Who is primarily responsible for the f…
What is meant by Generally Accepted Au…
AICPA's Auditing Standards Board
The standards by which the quality of the financial statement…
Management. The financial statements are the representation o…
The Statements on Auditing Standards issued by the AICPA's Au…
In the U.S.A, who issues auditing stan…
AICPA's Auditing Standards Board
"Generally Accepted Accounting Princip…
The standards by which the quality of the financial statement…
18 terms
Reports on Audited Financial Statements
The auditor's report will include:
The Introductory Paragraph should:
The Management's Responsibility for th…
The Auditor's Responsibility section i…
1. Title... 2. Addressee... 3. Introductory paragraph... 4. Management…
1. Identify the entity whose f/s have been audited... 2. State t…
1. an explanation that management is responsible for the prep…
1. a statement that the responsibility of the auditor is to e…
The auditor's report will include:
1. Title... 2. Addressee... 3. Introductory paragraph... 4. Management…
The Introductory Paragraph should:
1. Identify the entity whose f/s have been audited... 2. State t…
16 terms
Ch 2 Notes The Financial Statement Auditing Environment
External Auditor
Internal Auditors
Government Auditors
Forensic Auditors
or independent auditors because they are not employees of the…
auditors who are employed by an entity... - conduct financial, i…
employed by the federal, state, and local agencies... -usually c…
employed by Corp, Govt agencies, public acct firms, and consu…
External Auditor
or independent auditors because they are not employees of the…
Internal Auditors
auditors who are employed by an entity... - conduct financial, i…
33 terms
Audit Reports on Financial Statements
Component
Component auditor
Critical audit matters
Group
An entity or business activity for which group or component m…
An auditor who performs work on the financial information of…
Those matters addressed during the audit are those matters ad…
All the components whose financial information is included in…
Component
An entity or business activity for which group or component m…
Component auditor
An auditor who performs work on the financial information of…
8 terms
Reports on audited financial statements
Financial statements
For example under US gap a complete se…
Fair presentation in accordance with t…
Unmodified Audit opinion
Financial statements generally mean a complete set of general…
A balance sheet and statement of income or comprehensive inco…
1. Adequatly this close to significant accounting policies... 2.…
The auditor should express and on modified opinion when the a…
Financial statements
Financial statements generally mean a complete set of general…
For example under US gap a complete se…
A balance sheet and statement of income or comprehensive inco…
2) Audits of Group Financial Statements
Who are the two parties involved in a…
What is a group engagement partner? (u…
What is a component auditor? (using a…
What must the group engagement partner…
1) group engagement partner (firm ABC)... 2) component auditors…
the accounting firm that has examined the company having the…
the accounting firm that has audited one or more subs of the…
everything from the 10 GAAS principles to the audit evidence…
Who are the two parties involved in a…
1) group engagement partner (firm ABC)... 2) component auditors…
What is a group engagement partner? (u…
the accounting firm that has examined the company having the…
32 terms
Reporting on Audited Financial Statements
A. Unqualified With Explanatory Language
Component Auditors
The Group
The Group auditor must determine: ... Res…
modifications to the writing but not the opinion
-auditors from another country OR... -other auditors of subsidia…
-principal auditor, EY or big four auditor
1) independence of component auditor... 2) competence of compone…
A. Unqualified With Explanatory Language
modifications to the writing but not the opinion
Component Auditors
-auditors from another country OR... -other auditors of subsidia…
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