Term
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Definition
| is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. |
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Term
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Definition
| is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria |
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Term
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Definition
| The final stage of the auditing process in which the auditor communicates the findings to users. Informs readers of the degree of correspondence between information and established criteria. |
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Term
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Definition
| reflects the possibility that the information upon which the business risk decision was made was inaccurate. A likely cause of the information risk is the possibility of inaccurate financial statements. |
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Term
| Causes of Information Risk |
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Definition
Remoteness of Information, Biases and Motives of the Provider, Voluminous Data,
Complex Exchange Transactions, |
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Term
| Three Ways to incur costs to reduce information risk |
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Definition
1) User Verifies Information
2) User shares information risk with Management
3) Audited Financial Statements are provided. |
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Term
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Definition
| an Independent professional service that improves the quality of information for decision makers. Professional is independents and perceived to be free of bias. Helps improve reliability and relevance of information. |
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Term
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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. |
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Term
| Five Categories of Attestation Services |
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Definition
1) Audit of historical financial statements
2) Audit of internal control over financial reporting
3) Review of historical financial statements
4) Attestation services on information technology
5)Other attestation services that may be applied to a broad range of subject matter. |
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Term
| Audit of Historical Financial Statements |
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Definition
| Auditor issues a written report expressing an opinion about whether the financial statements are fairly stated in accordance with Generally Accepted Accounting Standards. |
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Term
| Section 404 of Sarbanes-Oxley Act |
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Definition
| Requires public companies to report management's assessment of the effectiveness of internal control and requires auditors to attest to the effectiveness of internal control over financial reporting. |
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Term
| Review of Historical Financial Statements |
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Definition
| The CPA provides a moderate level of assurance for a review as compared to a high level for audits, therefore less evidence is needed. |
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Term
| Non-Assurance Services provided by CPA's |
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Definition
1) Accounting and Bookkeeping
2) Tax Services
3) Management Consulting Services |
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Term
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Definition
| Operational, Compliance, Financial Statement |
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Term
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Definition
| Evaluates the efficiency and effectiveness of any part of an organizations operating procedures and methods. |
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Term
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Definition
| is conducted to determine whether the auditee is following specific procedures, rules or regulations set by some higher authority. |
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Term
| Financial Statement Audit |
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Definition
| is conducted to determine whether the financial statements are stated in accordance with the specified criteria (GAAP) |
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Term
| Government Accountability Office Auditor |
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Definition
| is an auditor working for the US Government Accountability Office. (GAO) a non-partisan agency in the legislative branch of the federal government. Headed by the Comptroller General, the GAO reports to and is responsible solely to congress. |
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