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27 Cards in this Set
- Front
- Back
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Assurance Services
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Professional services that improve the quality of information for decision makers
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Attestation Engagements
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Engagements where practitioners are engaged to issue an examination of a subject matter
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Assertion
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a declaration of whether the subject matter is in conformity with agreed upon procedures
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examinations
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aka audit. the cpa selects from all of the available evidence a combination of evidence that provides the lowest risk of missing a misstatement
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review
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less in scope that an examination. gives moderate assurance that a misstatement is not present
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agreed upon procedures
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usually agreed upon between cpa and management and for internal use
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business risk
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risk associated with a companys survival and profitiability. will they be able to pay back their loan?
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information risk
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risk that information used to determine business risk is not in compliance with gaap and is not good information
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financial audit
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audit of financial statements and financial accounting information of an entity
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compliance audit
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example is irs auditor auditing my tax return to make sure I complied with the tax law
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operational audit
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a study of a particular area of an entity like receiving branch in manufacturing company
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integrated audit
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assurance of financial statements and effectiveness of internal controls
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partner
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responsible for planning, supervising, and execution of an audit
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manager
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responsible for supervising two or more concurrent audit engagements
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senior auditor
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delegates audits to staff auditors and does ojt for staff auditors
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staff auditor
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first position after graduating college
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cpa firm size in order
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1. big 4
2. national firms 3. regional firms 4. local firms |
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4 parts of cpa exam
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1. Auditing and Attestation
2. Financial Accounting and Reporting 3. Regulation (law) 4. Business Environment and concepts |
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cut off
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the point in time where companies must stop recording transactions for that period
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integrated audit
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provides assurance of f/s and internal controls. required for public companies
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4 Parts of CPA Exam
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1) Auditing and Attestation
2) Financial Accounting and Reporting 3) Regulation (Law) 4) Business Environment and Concepts |
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Internal Audit FOcus
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Focus on how well business is ran, review procedures for effectiveness and compliance, cost recommendations
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Offering Specified Non Audit Services prohibited
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No Consulting type work for audit clients
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Audit Partner Rotation
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The lead audit partner and audit review partner must be rotated every five years for public companies
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Audit Reports must now contain..... (about internal controls)
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an assessment from management and description of internal control testing done in audit
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Does the PCAOB review financial statements?
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NO
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Who has responsibility for fairness of clients financial statements?
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Client's management.
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