Auditing Final

Front 1

Auditing

Back 1

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

Front 2

Evidence

Back 2

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

Front 3

Audit report

Back 3

Communicated auditors findings to users

Front 4

Assurance services

Back 4

Independent, professional services that improve the quality of information for decision makers

Front 5

PCAOB

Back 5

Created by SOX - oversees auditors of PUBLIC companies

Front 6

AICPA

Back 6

Organization of CPAs - governs auditing of PRIVATE companies

Front 7

SEC

Back 7

Federal agency that assists in providing investors with reliable information

Front 8

standard unqualified audit report

Back 8

Issued when all auditing conditions have been met, no significant misstatements have been discovered and left uncorrected, and auditors opinion is that fin stmts are fairly stated

Front 9

Unqualified report with explanatory paragraph or modified wording

Back 9

Unqualified report where fin stmts are fairly presented but auditor believes it important or required to provide additional information

Front 10

Explanatory paragraph

Back 10

Caused by non use of GAAP, substantial doubt about going concern, auditor adhering with departure from principle, or emphasis of other matters

Front 11

Modified wording

Back 11

Used in report when they involve other auditors

Front 12

Qualified opinion

Back 12

Report issued when auditor believes that overall fin stmts are fairly stated but either scope was limited or financial data indicated failures to follow GAAP

Front 13

Adverse opinion

Back 13

Report issued when auditor believes fin stmts are so materially misstated or misleading as a whole that they do not present the financial position our the results of its operations - uncommon, rarely used

Front 14

Disclaimer of opinion

Back 14

Report issued when auditor is not able to become satisfied that overall financial statements are fairly presented or auditor is not independent

Front 15

Analytical procedures

Back 15

Evaluations of financial information through analysis of plausible relationships among financial and non financial data

Front 16

BRAOs

Back 16

8 audit objectives that must be met before auditor can conclude that any given account balance is fairly stated

Front 17

BRAOs

Back 17

Existence, Completeness, Accuracy, Classification, Cutoff, Detail tie-in, Realizable value, rights and obligations

Front 18

Phases of Audit Process

Back 18

1. Plan and design audit approach

2. Perform tests of controls and substantive tests of transactions

3. Perform analytical procedures and tests of details and balances

4. Complete audit and issue report

Front 19

Substantive tests of transactions

Back 19

Audit procedures testing for monetary misstatements to determine whether the six TRAOs have been satisfied for each class of transaction

Front 20

Tests of controls

Back 20

Audit procedures to test the effectiveness of controls in support of a reduced assessed control risk - TRAOs

Front 21

Tests of details of balances

Back 21

Audit procedures testing for monetary misstatements to determine whether the eight BRAOs have been satisfied for each significant account balance

Front 22

TRAOs

Back 22

6 audit objectives that must be met before the auditor can conclude that the total for any given class of transactions is fairly stated

Front 23

TRAOs

Back 23

Occurrence, Completeness, Accuracy, Classification, Timing, Posting and summarization

Front 24

Presentation and disclosure related audit objectives

Back 24

Four audit objectives that must be met before auditor can conclude that presentation and disclosure are fairly stated - Occurence and rights and obligations, Completeness, Accuracy and valuation, Classification and understandability

Front 25

TRAO - Occurrence

Back 25

Whether recorded transactions have actually occurred - from sales journal to shipping document

Front 26

TRAO - Completeness

Back 26

Whether all transactions that should be included in journals have been included

Front 27

TRAO - Accuracy

Back 27

Recorded transactions are stated at the correct amounts

Front 28

TRAO - Posting and Summarization

Back 28

Recorded transactions are properly included in the master files

Front 29

TRAO - Classification

Back 29

Whether transactions are included in the appropriate accounts

Front 30

TRAO - Timing

Back 30

Transactions are recorded on correct dates - sales transaction is recorded on date of shipment

Front 31

BRAO - Existence

Back 31

Amounts included exist - looking at whats on paper and comparing to the physical

Front 32

BRAO - Completeness

Back 32

Existing amounts are included - looking at physical and comparing to paper

Front 33

BRAO - Cutoff

Back 33

Transactions near the balance sheet date are recorded in the proper period

Front 34

BRAO - Detail tie-in

Back 34

Details in account balance agree with related general ledger

Front 35

BRAO - Realizable value

Back 35

Whether account balances are included at amounts estimated to be realized