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17 Cards in this Set
- Front
- Back
AN INDEPENDENT, SYSTEMATIC, OBJECTIVE, UNBIASED ASSESSMENT THAT PROVIDES ANSWERS TO A SET OF QUESTIONS
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AUDIT
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PERFORMANCE AUDITS HAVE A GREATER VARIETY OF POSSIBLE QUESTIONS SUCH AS:
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* WAS THE ORGANIZATION OPERATING IN AN ECONOMICAL MANNER?
* DID THIS ORGANIZATION ACHIEVE ITS PROGRAM OBJECTIVES * DID THE COSTS CLAIMED UNDER A FEDERAL GRANT CONFORM TO THE GRANT REQUIREMENTS? * WAS THE PROGRAM OPERATED IN COMPLIANCE WITH LAWS AND REGULATIONS? |
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THE QUESTION TO BE ANSWERED IN FINANCIAL AUDITS IS?
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WERE THE FINANCIAL STATEMENTS FAIRLY PRESENTED - IN ALL MATERIAL RESPECTS- THE FINANCIAL CONDITIONS, RESULTS, AND USE OF RESOURCES OF THE ENTITY.
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AUDITORS DETERMINE WHAT MATERIAL (OR SIGNIFICANT) IS ON?
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THE BASIS OF PROFESSIONAL JUDGEMENT
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UNDER GOVERNMENT AUDIT STANDARDS, AUDITORS MAY CONDUCT THREE TYPES OF ENGAGEMENTS:
1) 2) 3) * OBJECTIVES DETERMINE THE TYPE OF WORK |
1) FINANCIAL AUDITS
2) ATTESTATION ENGAGEMENTS 3) PERFORMANCE AUDITS |
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GAAP IS ESTABLISHED BY DIFFERENT ORGANIZATIONS FOR DIFFERENT ENTITIES:
1) 2) 3) |
1) PUBLIC & PRIVATE COMPANIES PLUS NON-FOR PROFIT USE GAAP ESTABLISHED BY FASB
2) STATE & LOCAL GOVTS USE GAAP ESTABLISHED BY GASB 3) FEDERAL GOVT USES GAAP ESTABLISHED BY FASAB |
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WHAT DO FASB, GASB & FASAB STAND FOR?
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FASB- FINANCIAL ACCOUNTING STANDARDS BOARD
GASB- GOVERNMENTAL ACCOUNTING STANDARDS BOARD FASAB- FEDERAL ACCOUNTING STANDARDS ADVISORY BOARD |
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FINANCIAL AUDITS CAN ALSO INCLUDE AUDITS THAT ARE DIFFERENT IN SCOPE OTHER THAN AN AUDIT OF A COMPLETE SET OF FINANCIAL STATEMENTS SUCH AS:
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* SPECIFIED ELEMENTS, ACCOUNTS, OR ITEMS
* INTERIM FINANCIAL STMTS * ISSUING LETTERS TO UNDERWRITERS & OTHER REQUESTING PARTIES * REPORTING AN ENTITY'S COMPLIANCE WITH REGULATIONS |
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CONCERN EXAMINING, REVIEWING, OR PERFORMING AGREED-UPON PROCEDURES ON A SUBJECT MATTER OR AN ASSERTION ABOUT A SUBJECT MATTER THAT IS THE RESPONSIBILITY OF ANOTHER PARTY
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ATTESTATION ENGAGEMENT
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WHAT ARE THE 3 TYPES OF ATTESTATION ENGAGEMENTS?
1) 2) 3) |
1) EXAMINATION
2) REVIEW 3) AGREED-UPON PROCEDURES ENGAGEMENTS |
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TRUE OR FALSE: ATTESTATION ENGAGEMENTS CAN BE PERFORMED IN CONJUNCTION WITH A FINANCIAL AUDIT OR A PERFORMANCE AUDIT
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TRUE
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AICPA HAS ISSUED STANDARDS FOR PREFORMING ATTESTATION ENGAGEMENTS. THOSE STANDARDS ARE SET FORTH IN THE AICPA'S _______________________.
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STATEMENTS ON STANDARDS FOR ATTESTATION ENGAGEMENTS (SSAEs)
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WHEN AUDITORS OBTAIN SUFFICIENT, APPROPRIATE EVIDENCE TO EXPRESS AN OPINION ON WHETHER THE SUBJECT MATTER IS BASED ON (OR IN CONFORMITY WITH) THE CRITERIA IN ALL MATERIAL RESPECTS OR THE ASSERTION IS PRESENTED (OR FAIRLY STATED) IN ALL MATERIAL RESPECTS, BASED ON THE CRITERIA
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EXAMINATION
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AUDITORS PERFORM SUFFICIENT TESTING TO EXPRESS A CONCLUSION ABOUT WHETHER ANY INFO CAME TO THEIR ATTENTION ON THE BASIS OF THE WORK PERFORMED THAT INDICATES THE SUBJECT MATTER IS NOT BASED ON (OR IN CONFORMITY WITH) THE CRITERIA, OR THE ASSERTION IS NOT PRESENTED (OR FAIRLY STATED IN ALL MATERIAL RESPECTS BASED ON THE CRITERIA
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REVIEW
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AUDITORS PERFORM SPECIFIC PROCEDURES ON A SUBJECT MATTER
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AGREED-UPON PROCEDURES AGREEMENT
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IN THE CASE OF AGREED-UPON PROCEDURES ENGAGEMENTS, THE AUDITOR AND THE CLIENT AGREE ON:
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THE TESTS TO BE PERFORMED AND THE CRITERIA TO TEST AGAINST
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ATTESTATION ENGAGEMENTS CAN COVER A BROAD RANGE OF FINANCIAL OR NONFINANCIAL SUBJECTS. POSSIBLE SUBJECTS OF ATTESTATION ENGAGEMENTS COULD INCLUDE REPORTING ON:
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* AN ENTITIES INTERNAL CONTROL OVER FINANCIAL REPORTING
* AN ENTITIES COMPLIANCE WITH REQUIREMENTS OF SPECIFIED LAWS, REGS, RULES, CONTACTS, OR GRANTS * THE EFFECTIVENESS OF AN ENTITIES INTERNAL CONTROL OVER COMPLIANCE WITH SPECIFIED REQUIREMENTS, SUCH AS THOSE GOVERNING OR BIDDING FOR, ACCOUNTING FOR, AND REPORTING ON GRANTS & CONTACTS * THE PROCESSING OF TRANSACTIONS BY SERVICE ORGANIZATIONS * MGMT'S DISCUSSION AND ANALYSIS PRESENTATION * PROSPECTIVE FINANCIAL STMTS OR PRO-FORMA FINANCIAL INFO * THE RELIABILITY OF PERFORMANCE MEASURES * FINAL CONTACT COST * ALLOW-ABILITY AND REASONABLENESS OF PROPOSED CONTRACT AMOUNTS * SPECIFIED PROCEDURES PERFORMED ON A SUBJECT MATTER |