Term
who can do auditing?
name 3 organizations? |
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Definition
you have to belong to an organization including:
CICA
CGA
CMA
institute of auditors
information systems and audit and control association |
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Term
what is and adudit (impoartant)
3 important things |
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Definition
| the accumulation and avaluation fo evidence abuot information to determine and report on the degree of correspondence between the information and established criteria (important do not believe the nubmers on balance sheet and income statemnt are right; balance statemtn not true value of firm and auditors do not create financial statements) |
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Term
| 5 key components of auditing |
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Definition
1. quantifiable info
2. GAAP Criteria
3. evidence cathering
4. competant independent person
5. report |
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Term
| Factors that affect demand for audits |
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Definition
- remotemenss of info
- bias and motives of provider
- volumnious data
- complex exchabnge transactions
- perceived benefit and loss |
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Term
| Auditing can reduce ______ risk associated with financial statements. The risk that the ffinancial statements are _____ |
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Definition
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Term
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Definition
1. financial audits
2. compliance audits
3. operational audits |
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Term
| most common type of audit |
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Definition
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Term
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Definition
| determine if financial statments are in accordance with GAAP |
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Term
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Definition
| to determine whehter auditee is following specific procedures to rules set down by higher authority |
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Term
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Definition
| review of any part of an orgaization operations (procudes like auditing afe process) |
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Term
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Definition
1. public accountant
2. government auditors
3. cra
4. internal |
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Term
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Definition
| Genearally Accepted Auditing Standards |
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Term
| Genearally Accepted Auditing Standards 3 reponsibilities |
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Definition
general
examination
reporting |
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Term
| general three important parts part of GAAS |
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Definition
technical training PROFICIENCY
DUE CARE
OBJECTIVE state of mind |
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Term
| examination (5 total pointS) part of GAAS |
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Definition
planning
execution
supervision
understanding on environment and internal control
appropriate audit evidnece |
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Term
| reporting part of GAAS 5 points |
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Definition
prepare a standardized repot
identifiy the financial statments
state reponsiblity of mgmt and auditor
explain scope
provide opinion |
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Term
| elements of quality control 9... |
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Definition
1. leadership responsiblities in firm
2. tgeneral ethical requirements
3. independnece
4. client acceptance
5. general human resource policies
6. extent of professional development
7. engagemetn performance
8 engagement quality control
9 documentation |
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Term
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Definition
society funcitoning in orderly mannor
incorporated into laws to makes ure people aren't behaving unethically |
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Term
| accountants are unique from other professions: how |
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Definition
| they are hired by management yet reports to shareholders. |
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Term
| 6 principals of governing conduct |
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Definition
1. maintaining the good repuattion of the profession
2. perform services with integrity due care sustain professional competatnce
3. be and remain free of influence
4. duty of confidence
5. develop practic based upon professional excellence
6. professional coutesy should be maintained |
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Term
| three important concepts of independence |
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Definition
in fact
in appearance
threats (challenges) |
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Term
| independence in fact means |
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Definition
no ownership in company
no relatives in upper mgmt
do not accept gifts |
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Term
| independence in appearance means |
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Definition
| unbiansed as appears to others... |
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Term
| treats to independence 5 things |
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Definition
1. self interest threat
2. self review
3. advocacy
4. familiarity
5. intimidations |
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Term
| treats to independence self interest example |
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Definition
| ie the firm is afraid that person will leave |
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Term
| treats to independence self reveiw example |
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Definition
| can't do bookeeping and audit serivces |
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Term
| treats to independence advocasy example |
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Definition
| accounting firm going to bank to say that the loan should be approved |
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Term
| treats to independence familiarity threat example |
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Definition
| ie former partner is not CEo, long time client (ie top 5 list of people to call when you die...) |
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Term
| treats to intimidation example |
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Definition
| CLIENT threatening to replace firm |
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Term
| when no confidentiality is expected? (3) |
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Definition
1. with client permission
2. reqeusted by law
3 professional duty to disclose |
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Term
| 3 important parts of GAAS |
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Definition
1. technically training and proficiency
2. due care
3. objective state of mind |
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Term
| components of auditors report (6) |
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Definition
ttile
address
paragraphs (intro scope and opinion) signature city date |
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