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19 Cards in this Set

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The recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making
Accounting
An independent professional service that improves the quality of information for decision makers
Assurance service
A type of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party
Attestation service
a form of attestation service in which the auditor issues a written report stating whether the financial statements are in material conformity with generally accepted accounting princples
Audit of historical financial statements
The communication of audit findings to users
Audit Report
The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria
Auditing
A person who has met state regulatory requirements, including passing the Uniform CPA Examination, and has thus been certified; a CPA may have his or her primary responsibility the performance of the audit function on published historical financial statements of commercial and noncommercial financial entities
Certified Public Accountant/CPA
1-a review of an organization's financial records performed to determine whether the organization is following specific procedures, rules or regulations set by some higher authority; 2-an audit performed to determine whether an entity that receives financial assistance from the federal government has complied with specific laws and regulations
Compliance Audit
Any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria
Evidence
An audit conducted to determine whether an overall financial statements of an entity are stated in accordance with specified criteria - usually GAAP
Financial Statement Audit
An auditor working for the US Government Accountability Office GAO - the GAO reports to and is responsible solely to Congress
Government accountability office auditor
CPA or accounting firms that perform audits of commercial and noncommercial financial entities
Independent Auditors
The risk that information upon which a business decision is made inaccurate
Information Risk
Auditors employed by a company to audit for the company's board of directors and management
Internal Auditors
An attestation engagement in which the auditor reports on the effectiveness of internal control over financial report; such reports are required for public companies under sEction 404 of SOX
Internal Control over Financial Reporting
Auditors who work for the IRS and conduct examinations of tax payers' returns
Internal revenue agents
A review of any part of an organization's operating procedures and methods for the purpose of evaluating efficiency and effectiveness
Operational audit
a form of attestation in which a CPA firm issues a written report that provides less assurance than an audit as to whether the financial statements are in material conformity with GAAP
Review of historical financial statements
A federal securities law passed in 2002 that provides for additional regulation of public companies and their auditors; the Act established the Public Company Accounting Oversight Board (PCAOB) and also requires auditors to attest to management reports on the effectiveness of internal control over financial reporting
Sarbanes-Oxley Act