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Chapter 01
Auditing Test #1
20
Accounting
Not Applicable
09/19/2011

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Cards

Term
auditing
Definition
accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. This should be done by a competent, person.
Term
evidence
Definition
any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria.
Term
independent auditors
Definition
auditors reporting on company financial statements
Term
audit report
Definition
the final stage in the auditing process, which communicates the auditor's findings to users
Term
accounting
Definition
the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making
Term
information risk
Definition
reflects the possibility that the information upon which the business risk decision was made was inaccurate.
Term
assurance services
Definition
an independent professional service that improves the quality of information for decision makers
Term
attestation service
Definition
a type of assurance service in which the CPA firm issues a report about the reliability of an assertion that is made by another party
Term
audit of historical financial statements
Definition
a report expressing an opinion about whether the financial statements are fairly stated in accordance with the applicable accounting standards.
Term
internal control over financial reporting
Definition
management asserts that internal controls have been developed and implemented following well established criteria.
Term
examples of other assurance services
Definition
mystery shopping, fraud and illegal acts risk assessment, ISO 9000 certifications, compliance with trading policies and procedures
Term
operational audit
Definition
evaluates the efficiency and effectiveness of any part of an organization's operating procedures and methods. the reviews are not limited to accounting and is more like management consulting.
Term
compliance audit
Definition
conducted to determine whether the auditee is following specific procedures, rules, or regulations set by some higher authority
Term
financial statement audit
Definition
conducted to determine whether the financial statements (the information being verified) are stated in accordance with specified criteria.
Term
government accountability office auditor
Definition
an auditor working for the US Government Accountability Office (GAO)
Term
US Government Accountability Office (GAO)
Definition
a nonpartisan agency in the legislative branch of the federal government
Term
internal revenue agents
Definition
IRS auditors
Term
internal auditors
Definition
employed by all types of organizations to audit for management
Term
certified public accountant (CPA)
Definition
regulated by state law through the licensing departments of each state
Term
Sarbanes-Oxley Act
Definition
a federal securities law passed in 2002 that provides for additional regulation of public companies and their auditors. established the PCAOB and requires more effective internal controls over financial reporting
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