Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
What best describes what is meant by the term GAAS?
|
Measures of the quality of the auditor's performance.
|
|
|
Four Steps to Audit Sampling?
|
#1 - always assume a normal distribution.
#2 - random sample #3 - sample is representative of the population #4 - standard deviation/sampling risk |
|
|
Factors to Determine Attribute Sample Size?
|
#1 - tolerable misstatement
#2 - expected misstatement #3 - risk of assessing control risk too low |
|
|
What is stratification?
|
Items may be separated into relatively homogeneous groups. Generally results in a smaller sample size. Commonly used when population has high variance.
|
|
|
Forms of Classical Variable Sample Plans?
|
#1 - Mean-Per-Unit
#2 - Ratio estimate #3 - Difference estimate |
|
|
Elements of Quality Control Standards
|
H uman Resources
E ngagement/Client Acceptance & Continuance L eadership Responsibilities P erformance of Engagement M onitoring E thical Requirements |
|
|
Management's Financial Statement Assertions - Transactions & Events
|
C ompleteness
P roper Period Cutoff A ccuracy C lassification O ccurrence |
|
|
Management's Financial Statement Assertions - Account Balances
|
C ompleteness
A llocation and Valuation R ights and Obligations E xistence |
|
|
Management's Financial Statement Assertions - Presentation and Disclosure
|
C ompleteness
U nderstandability and Classification R ights and Obligations & Occurrence V aluation and Accuracy |
|
|
Components of Internal Control
|
C ontrol Environment
R isk Assessment I nformation & Communication S ystems M onitoring Existing Control Activities |
|
|
Entity Objectives
|
Reliability of Financial Reporting
Effectiveness and Efficiency of Operations Compliance with Applicable Laws and Regulations |
|
|
Components of an IT Department
|
C ontrol Group
O perators P rogrammers A nalysts L ibrarian |
|
|
Existing Control Activities
|
P renumbered Documents
A uthorization of Transactions I ndependent Checks on Performance D ocumentation T imely & Appropriate Performance Reviews I nformation Processing Controls P hysical Control Over Assets S egregation of Duties |
|
|
Risk Assessment Audit Steps
|
I nternal Control - Understand
M isstatement - Assess A ssessed Risk Response C ontrol Testing P erform substantive testing A udit Evidence-evaluate appropriateness & sufficiency. |
|
|
Documenting Internal Control
|
F lowchart
I nternal Control Questionnaire N arrative D ecision Table |
|
|
Fraud Risk Factors
|
Fraud Triangle
Pressure, Opportunity, Rationalization |
|
|
Detailed Substantive Procedures
|
F ooting, Cross-footing, Recalculation
I nquiry V ouching E xamination/Inspection C onfirmation A nalytical Procedures R eperformance R econciliation O bservation T racing S ubsequent Event Review |
|
|
Generally Accepted Auditing Standards
|
T raining
I ndependence P rofessional Care P lanning & Supervision I nternal Control, Entity, & Environment E vidence A ccounting = GAAP C onsistency D isclosure E xpress Opinion |
|
|
Standard Audit Report Verbiage
|
Responsibility * 2
Audit & Assurance Plan & Perform Material Misstatement Examining & Evidence Assessing & Accounting Made & Management |
|
|
Compilation Ingredients
|
A ICPA
L imited A udited - NO R eviewed - NO D isclaimer of Opinion - NO Assurance |
|
|
Attest Standards
|
Auditing something other than historical financial statements...
Differences between GAAS: General Standards: knowledge of subject matter & belief that the subject can be audited. Fieldwork Standards: NO internal control Reporting Standards: Must express conclusion, disclose significant facts, identify the subject matter, and restrict use. |
|
|
Review Requirements
|
U nderstanding with Client
L earn about the entity's business I nquires A nalytical Procedures R eview Only - No other procedures C lient Rep Letter P rofessional Judgement A ccountant needs to communicate results |
