Study sets matching "auditing"

Study sets
Classes
Users

Study sets matching "auditing"

149 terms
auditing
auditors must make decisions regarding…
A____ is the detailed instruction that…
audit evidence has two primary qualiti…
what is not a characteristic of the re…
sample size: yes timing of audit :yes
audit procedure
confirmation of AR balance received from a customer
education of auditor
auditors must make decisions regarding…
sample size: yes timing of audit :yes
A____ is the detailed instruction that…
audit procedure
48 terms
Auditing
Definitions... Audit
Auditor
Internal controls
Fraud
an official examination and verification of accounts and reco…
accounting professional who conducts an independent examinati…
Processes and procedures employed within a business to ensure…
A dishonest act by an employee that results in personal benef…
Definitions... Audit
an official examination and verification of accounts and reco…
Auditor
accounting professional who conducts an independent examinati…
Auditing
Auditing
Evidence
Audit
Attestation
should be done by a competent, independent person
any information used by the auditor to determine whether the…
a form of attestation service in which the auditor expresses…
a type of assurance service in which the CPA firm issues a re…
Auditing
should be done by a competent, independent person
Evidence
any information used by the auditor to determine whether the…
Auditing
Assurance
Assurance Services
Attestation Engagement
Attestation
the lending of credibility of information.
Independent professional services that improve the quality of…
The provision of an opinion on subject matter or an assertion…
the lending of credibility to assertions made by a third party.
Assurance
the lending of credibility of information.
Assurance Services
Independent professional services that improve the quality of…
24 terms
Auditing
Compliance Audit
Environmental audit
Follow-up
forensic accounting
Usually internal audit, sometimes government. Make sure follo…
Examination to make sure following environmental laws, regula…
Required by internal auditors to make sure significant findin…
PI, no materiality in fraud
Compliance Audit
Usually internal audit, sometimes government. Make sure follo…
Environmental audit
Examination to make sure following environmental laws, regula…
41 terms
Auditing
General Standards
Competence
Field Work Standards
Evidence
Qualifications of the auditor and quality of his work... Compete…
adequate technical training,... reliable and relevant
basis to judge the fairness of financial statements... Planning…
must be sufficient and competent, and obtained through inspec…
General Standards
Qualifications of the auditor and quality of his work... Compete…
Competence
adequate technical training,... reliable and relevant
13 terms
Auditing
To express whether or not the statemen…
The concept of the magnitude of a miss…
1. Preplanning... 2. Client Risk Profile…
Client continuance/acceptance - prior…
What is the objective of an audit?
What is materiality?
What are the eight phases of the audit?
What are some aspects in the preplanning stage?
To express whether or not the statemen…
What is the objective of an audit?
The concept of the magnitude of a miss…
What is materiality?
Auditing
10 GAAS
ASB
PCAOB
Principles underlying an audit
General: Technical training and proficiency, Independence and…
Issues SAS for non public companies
Issues AS for public companies
Purpose... Responsibilities... Performance... Reporting
10 GAAS
General: Technical training and proficiency, Independence and…
ASB
Issues SAS for non public companies
Auditing
Any service that requires a CPA firm t…
The Sarbanes-Oxley Act applies to whic…
The use of the Certified Public Accoun…
An audit to determine whether an entit…
Attestation service... Ch 1
Public Companies... Ch 1
state law through a licensing department or agency of each st…
Compliance audit... Ch 1
Any service that requires a CPA firm t…
Attestation service... Ch 1
The Sarbanes-Oxley Act applies to whic…
Public Companies... Ch 1
Auditing
Existence or occurrence
Rights and obligations
Completeness
Valuation or allocation
Assets and liabilities included in the accounts exist and rec…
Entity has a legal claim on all assets and revenues reported…
All balances and transactions have been recorded in the finan…
Assets, liabilities, and recorded transactions have been valu…
Existence or occurrence
Assets and liabilities included in the accounts exist and rec…
Rights and obligations
Entity has a legal claim on all assets and revenues reported…
241 terms
Auditing
Any service that requires a CPA firm t…
The Sarbanes-Oxley Act applies to whic…
The use of the Certified Public Accoun…
An audit to determine whether an entit…
Attestation service... Ch 1
Public Companies... Ch 1
state law through a licensing department or agency of each st…
Compliance audit... Ch 1Any service that requires a CPA firm to…
Any service that requires a CPA firm t…
Attestation service... Ch 1
The Sarbanes-Oxley Act applies to whic…
Public Companies... Ch 1
Auditing
Who creates internal controls?
What do internal controls provide reas…
What two things must an auditor evalua…
What is the auditor's primary consider…
An entity's board of directors and management.
They provide reasonable assurance in achieving:... - Effective…
The design, and existence of a system, and the implementation…
Whether, and how, all elements of the control system prevent…
Who creates internal controls?
An entity's board of directors and management.
What do internal controls provide reas…
They provide reasonable assurance in achieving:... - Effective…
auditing
Concept of segregation of duties/respo…
Procedures to complete a search for un…
Audit procedures
Audit process
1. Authorization to execute transactions. ... 2. Recording of tr…
1) Knowledge of business... 2) Follow the unmatched supplier's i…
Recalculation—observation---confirmation---enquiry (vouch, tr…
1. Risk assessment: ... a. Pre-engagement activity... b. Preliminar…
Concept of segregation of duties/respo…
1. Authorization to execute transactions. ... 2. Recording of tr…
Procedures to complete a search for un…
1) Knowledge of business... 2) Follow the unmatched supplier's i…
81 terms
Auditing
For an entity's financial statements t…
When disclaiming an opinion, what do y…
For and qualified an adverse opinion,…
for adverse opinion, In the auditor re…
the framework should be in the description on the financial s…
Instructions, auditor report, then is going to include, basis…
auditor responsibility paragraph. then include basis for qual…
we believe that the audit evident we have obtained is suffici…
For an entity's financial statements t…
the framework should be in the description on the financial s…
When disclaiming an opinion, what do y…
Instructions, auditor report, then is going to include, basis…
12 terms
Auditing
comply with
adequate
suffcient
submit
stosować się do, przestrzegać
odpowiedni
...
przedłożyć, przedstawić
comply with
stosować się do, przestrzegać
adequate
odpowiedni
Auditing
Audit risk
Detection risk
Audit procedures
Audit evidence
A function of the risk of material misstatement of the financ…
Risk that an auditor's substantive procedures will not detect…
The methods or techniques the auditor uses to gather and eval…
The necessary information that an auditor gathers in order to…
Audit risk
A function of the risk of material misstatement of the financ…
Detection risk
Risk that an auditor's substantive procedures will not detect…
46 terms
Auditing
Which of the following factors does no…
Which of the following expectations ca…
Which of the following parties are inv…
Which of the following are the respons…
Requirements of the Center for Audit Quality
The financial statements are presented fairly in accordance w…
All of the above
None of the Above
Which of the following factors does no…
Requirements of the Center for Audit Quality
Which of the following expectations ca…
The financial statements are presented fairly in accordance w…
Auditing
Section 104
Section 101
Section 103
Section 102
Inspections of Registered Public Accounting Firms: Annual qua…
Establishment: Board Membership: the board will have five fin…
Auditing, Quality Control and Standards and Rules:
Mandatory Registration, Fees and Funding: IN order to audit a…
Section 104
Inspections of Registered Public Accounting Firms: Annual qua…
Section 101
Establishment: Board Membership: the board will have five fin…
83 terms
Auditing
Auditing
evidence
independent auditors
audit report
The accumulation and evaluation of evidence about information…
Any information used by the auditor to determine whether the…
auditors reporting on company financial statements
final stage, communicates the auditor's findings to users. Mu…
Auditing
The accumulation and evaluation of evidence about information…
evidence
Any information used by the auditor to determine whether the…
18 terms
Auditing
An accountant
A chartered accountant/ certified acco…
To obtain an international certificate
An auditor
Person in charge of accountancy, book- keeping and double ent…
A professional with a certificate issued by an internationall…
To obtain an internationally recognised certificate
A person in charge of auditing - scrutinising the accountancy…
An accountant
Person in charge of accountancy, book- keeping and double ent…
A chartered accountant/ certified acco…
A professional with a certificate issued by an internationall…
Auditing
Types of Audit Services
Assurance Services:
Forms of Attestation (Highest to Lowes…
Examination
a. Assurance Services... - Attestation Services... Example: Audits…
a. The broad range of information enhancement services that a…
Examination - Review - Agreed Upon Procedures
High Level of assurance provided, low risk of material missta…
Types of Audit Services
a. Assurance Services... - Attestation Services... Example: Audits…
Assurance Services:
a. The broad range of information enhancement services that a…
13 terms
Auditing
Assurance Services
Attest
Audit Evidence
Audit Risk
Independent professional services that improve the quality of…
A service when a practitioner is engaged to issue or does iss…
All the information used by the auditor in arriving at the co…
The Risk that the auditor expresses an inappropriate audit op…
Assurance Services
Independent professional services that improve the quality of…
Attest
A service when a practitioner is engaged to issue or does iss…
241 terms
Auditing
Any service that requires a CPA firm t…
The Sarbanes-Oxley Act applies to whic…
The use of the Certified Public Accoun…
An audit to determine whether an entit…
Attestation service... Ch 1
Public Companies... Ch 1
state law through a licensing department or agency of each st…
Compliance audit... Ch 1Any service that requires a CPA firm to…
Any service that requires a CPA firm t…
Attestation service... Ch 1
The Sarbanes-Oxley Act applies to whic…
Public Companies... Ch 1
auditing
engagement letter
financial statement audit
fraud trinagle
red flags
a communication between the audit firm and the audit committe…
a systematic process of objectively obtaining evidence regard…
a model that recognizes the incentives, opportunities, and ra…
risk factors suggesting a heightened risk of fraud
engagement letter
a communication between the audit firm and the audit committe…
financial statement audit
a systematic process of objectively obtaining evidence regard…
29 terms
Auditing
audit
board of directors
chief executive officer
financial audit
to audit means to thoroughly examine the bookkeeping records,…
basic responsibility is to determine the mission and purpose…
hired with other top management and periodically reviews thei…
objective is to form an opinion on the financial statements p…
audit
to audit means to thoroughly examine the bookkeeping records,…
board of directors
basic responsibility is to determine the mission and purpose…
Auditing
Auditing
Generally Accepted Auditing Standards…
General Standards
Competence
is a systematic process of objectively obtaining and evaluati…
1. The audit is to be performed by a person or persons having…
personal in nature; concerned with qualifications of the audi…
adequate technical training (appropriate education) and profi…
Auditing
is a systematic process of objectively obtaining and evaluati…
Generally Accepted Auditing Standards…
1. The audit is to be performed by a person or persons having…
241 terms
Auditing
Any service that requires a CPA firm t…
The Sarbanes-Oxley Act applies to whic…
The use of the Certified Public Accoun…
An audit to determine whether an entit…
Attestation service... Ch 1
Public Companies... Ch 1
state law through a licensing department or agency of each st…
Compliance audit... Ch 1
Any service that requires a CPA firm t…
Attestation service... Ch 1
The Sarbanes-Oxley Act applies to whic…
Public Companies... Ch 1
AUDITING
The 6 Assertions
Audit evidence
Types of audit evidence
Related party transactions
1. existence and occurrence... 2. rights and obligations... 3. comp…
1. Sufficient: quantity ... 2. appropriate: quality
1. internal ... 2. external... 3. documentation... 4. third party rep…
inherently risky
The 6 Assertions
1. existence and occurrence... 2. rights and obligations... 3. comp…
Audit evidence
1. Sufficient: quantity ... 2. appropriate: quality
91 terms
Auditing
Which of the following is an example o…
Audits may be characterized as (a) fin…
The concept of "professional skepticis…
CPA certificates and licenses to pract…
U.S. Internal Revenue Service auditors.
compliance audit; government (IRS)
False
States or territories of the United States
Which of the following is an example o…
U.S. Internal Revenue Service auditors.
Audits may be characterized as (a) fin…
compliance audit; government (IRS)
Auditing
Information risk
Business failure
Audit failure
Audit risk
the possibility that the information upon which the business…
occurs when a business is unable to repay its lender or meet…
occurs when the auditor issues an incorrect audit opinion bec…
represents the possibility that the auditor concludes after c…
Information risk
the possibility that the information upon which the business…
Business failure
occurs when a business is unable to repay its lender or meet…
Auditing
Audit
Audit Criteria
Audit Evidence
Audit Conclusion
systematic and documented process... for gathering audit evidenc…
set of policies, procedures or requirements
records, statements of fact or other information which are re…
the outcome of an audit provided by the audit team after cons…
Audit
systematic and documented process... for gathering audit evidenc…
Audit Criteria
set of policies, procedures or requirements
23 terms
Auditing
Assurance Engagement
Applicable financial reporting framework
Assertions
Audit Risk
- an engagement where a practitioner issues a written report…
The financial framework selected by management to prepare the…
Statements made by management regarding the recognition, meas…
the risk the auditor may express the wrong opinion
Assurance Engagement
- an engagement where a practitioner issues a written report…
Applicable financial reporting framework
The financial framework selected by management to prepare the…
11 terms
Auditing
Rule 101
Rule 102
Rule 201
Rule 202
Independence
Integrity and objectivity
General standards
Compliance with standards
Rule 101
Independence
Rule 102
Integrity and objectivity
35 terms
Auditing
chance a company takes that customers…
Probability that info circulated in a…
Complexity of information, Remoteness…
Is a SYSTEMATIC process of OBJECTIVELY…
Business Risk
Information Risk
User demand for Reliable information drivers
Auditing definition
chance a company takes that customers…
Business Risk
Probability that info circulated in a…
Information Risk
232 terms
Auditing
Any service that requires a CPA firm t…
The Sarbanes-Oxley Act applies to whic…
The use of the Certified Public Accoun…
An audit to determine whether an entit…
Attestation service... Ch 1
Public Companies... Ch 1
state law through a licensing department or agency of each st…
Compliance audit... Ch 1
Any service that requires a CPA firm t…
Attestation service... Ch 1
The Sarbanes-Oxley Act applies to whic…
Public Companies... Ch 1
Auditing
GAAP
GAAS
general standards
fieldwork standards
generally accepted accounting principle for financial reporti…
general standards, fieldwork standards, reporting standards
applicable to auditor and audit firm
applicable to conduct of audit
GAAP
generally accepted accounting principle for financial reporti…
GAAS
general standards, fieldwork standards, reporting standards
Auditing
AICPA
IAASB
SEC
PCAOB
American Institute of CPA ... -voluntary membership ... - non publi…
International Audit and Assurance Standards Board... - An indepe…
Securities and exchange commission ... - Goverment agency ... - Enf…
Public Company Accountants Oversight Board ... - The board estab…
AICPA
American Institute of CPA ... -voluntary membership ... - non publi…
IAASB
International Audit and Assurance Standards Board... - An indepe…
20 terms
Auditing
AICPA
PCAOB
IAASB
Common objective
American institute of certified public accountants
Public company accounting oversight board
International auditing and assurance standards board
Provide assurance to public that audits are conducted in a qu…
AICPA
American institute of certified public accountants
PCAOB
Public company accounting oversight board
Auditing
Trace a sample of shipping documents t…
Compare the quantity and description o…
Compare the quantity and description o…
Use audit software to foot and cross-…
STOT; Inspection; Completeness
STOT; Inspection; Accuracy
STOT; Inspection; Accuracy
STOT; Reperformance; Posting and summarization
Trace a sample of shipping documents t…
STOT; Inspection; Completeness
Compare the quantity and description o…
STOT; Inspection; Accuracy
Auditing
to complete
examination
to evaluate
accuracy
завершать
экзамен, проверка
оценивать
точность
to complete
завершать
examination
экзамен, проверка
71 terms
auditing
Information Asymmetry
Professional skepticism
Management Assertions:
Auditing:
Agents have more information about the true financial situati…
not assuming that the client is telling the complete truth bu…
Transactions ... Account Balance ... Presentation & Disclosure
A systematic process of objectively obtaining and evaluating…
Information Asymmetry
Agents have more information about the true financial situati…
Professional skepticism
not assuming that the client is telling the complete truth bu…
32 terms
Auditing
For phases of the audit process
Gaas ... General standards
Steps for phase 1 of the audit process
Gaas... Standards of reporting
Plan and design an audit approach.... Perform tests of controls…
Adequate technical training and proficiency.... Independence of…
Accept client and perform initial planning.... Understand the cl…
Financial statements are in accordance with gaap.... Gaap consis…
For phases of the audit process
Plan and design an audit approach.... Perform tests of controls…
Gaas ... General standards
Adequate technical training and proficiency.... Independence of…
Auditing
Risk Assessment
Control Env.
Control Act.
Info & Comm.
ID and manage risk that may affect organization
To implement and follow internal controls
Policies and procedures established
Exchange info
Risk Assessment
ID and manage risk that may affect organization
Control Env.
To implement and follow internal controls
37 terms
Auditing
Chapter 1
Audit of Historical Financial Statements
Audit Report
Auditing
...
A form of attestation service in which the auditor issues a w…
The communication of Audit findings to users.
The accumulation and evaluation of evidence about information…
Chapter 1
...
Audit of Historical Financial Statements
A form of attestation service in which the auditor issues a w…
61 terms
Auditing
GAAS are defined as the SAS issued by…
AT 101 states that the attestation sta…
The attestation standards do not inclu…
Due care requires BLANK at every level…
Auditing STandards Board (ASB)
historical financial statements.
internal control
Critical review
GAAS are defined as the SAS issued by…
Auditing STandards Board (ASB)
AT 101 states that the attestation sta…
historical financial statements.
32 terms
Auditing
Audit
Board of Directors
Financial Audit
Independent (external) auditors
thoroughly examine bookkeeping records, financial accounts, a…
determine mission and purpose of a company. Represent interes…
Form an opinion on financial statements produced by managemen…
Gives public reassurance that auditing is not associated with…
Audit
thoroughly examine bookkeeping records, financial accounts, a…
Board of Directors
determine mission and purpose of a company. Represent interes…
18 terms
Auditing
5 Management's Assertions
standard unqualified opinion
qualified opinion
disclaimer opinion
1. existence... 2. completeness... 3. presentation/disclosure... 4. me…
auditor states that the financial statements are presented fa…
everything is OK except for a material scope limitation or a…
we are not giving an opinion because of a pervasively materia…
5 Management's Assertions
1. existence... 2. completeness... 3. presentation/disclosure... 4. me…
standard unqualified opinion
auditor states that the financial statements are presented fa…
Auditing
Assertions
Nature
Accounting records
Other information
expressed or implied representations by management regarding…
the form or type of information, which includes accounting re…
inclide the records of initial entries and supporting records…
minutes of meetings; confirmations from third parties; indust…
Assertions
expressed or implied representations by management regarding…
Nature
the form or type of information, which includes accounting re…
38 terms
Auditing
Types of Audits
Types of Auditors
Completeness (assertion)
Existence or Occurence (assertion)
Compliance, Operational, F/S, Forensic
Internal, External, Government, Forensic
everything that happened is included in F/S (source to G/L)
did things on F/S really happen (G/L to source
Types of Audits
Compliance, Operational, F/S, Forensic
Types of Auditors
Internal, External, Government, Forensic
51 terms
Auditing
Information Asymmetry
Information risk
Business risk
Going concern assumption
A situation in which one party in a transaction has more or s…
Risk that information is incorrect or that a company fails
Risk about a business fails
The assumption that a company will continue to exist
Information Asymmetry
A situation in which one party in a transaction has more or s…
Information risk
Risk that information is incorrect or that a company fails
1 of 10