Act 424 - Vocab From Chapter 1

Front 1

The recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making

Back 1

Accounting

Front 2

An independent professional service that improves the quality of information for decision makers

Back 2

Assurance service

Front 3

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

Back 3

Attestation service

Front 4

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

Back 4

Audit of historical financial statements

Front 5

The communication of audit findings to users

Back 5

Audit Report

Front 6

The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

Back 6

Auditing

Front 7

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

Back 7

Certified Public Accountant/CPA

Front 8

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

Back 8

Compliance Audit

Front 9

Any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria

Back 9

Evidence

Front 10

An audit conducted to determine whether an overall financial statements of an entity are stated in accordance with specified criteria - usually GAAP

Back 10

Financial Statement Audit

Front 11

An auditor working for the US Government Accountability Office GAO - the GAO reports to and is responsible solely to Congress

Back 11

Government accountability office auditor

Front 12

CPA or accounting firms that perform audits of commercial and noncommercial financial entities

Back 12

Independent Auditors

Front 13

The risk that information upon which a business decision is made inaccurate

Back 13

Information Risk

Front 14

Auditors employed by a company to audit for the company's board of directors and management

Back 14

Internal Auditors

Front 15

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

Back 15

Internal Control over Financial Reporting

Front 16

Auditors who work for the IRS and conduct examinations of tax payers' returns

Back 16

Internal revenue agents

Front 17

A review of any part of an organization's operating procedures and methods for the purpose of evaluating efficiency and effectiveness

Back 17

Operational audit

Front 18

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

Back 18

Review of historical financial statements

Front 19

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

Back 19

Sarbanes-Oxley Act