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17 Cards in this Set
- Front
- Back
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Audit committee |
A committee consisting of members of the board of directors, charged with overseeing the entity's system of internal control over financial reporting, internal and external auditors, and the financial reporting process. Members typically must be independent of management. |
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Board of Directors |
Persons elected by the stockholders of a corporation to oversee management and to direct the affairs of the corporation. |
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Business processes |
Processes implemented by management to achieve entity objectives. These are typically organized into the following categories: revenue, purchasing, human resource management, inventory management, and financing processes. |
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Code of Professional Conduct |
A set of principles, rules, and interpretations that establish guidance for acceptable behavior for accountants and auditors. |
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corporate Governance |
The oversight mechanisms in place to help ensure the proper stewardship over an entity's assets. Management and the board of directors play primary roles, and the independent auditor plays a key facilitating role. |
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Ethics |
A system or code of conduct based on moral duties and obligations that indicated how an individual should behave. |
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Generally Accepted Accounting Principles (GAAP) |
Accounting principles that are generally accepted for the preparation of financial statements in the United States. These standards are currently issued primarily by FASB, with oversight and influence by the SEC. International Financial Reporting Standards (IFRS) are set by the International Accounting Standards Board. |
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Generally Accepted Auditing Standards (GAAS) |
Ten broad statements guiding the conduct of financial statement auditing. These 10 standards are still found in the PCAOB standards but they have been replaced in the ASB standards by the "Principles Underlying an Audit Conducted in Accordance with these Standards." |
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Illegal acts |
Violations of the laws or government regulations. |
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Independence |
A state of objectivity in fact and in appearance, including the absence of any significant conflicts of interest. |
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Integrated Audit |
An audit of both financial statements and internal control over financial reporting, provided by the external auditor. Required for public companies. |
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International Standards on Auditing (ISA) |
Statements issued by IFAC's International Auditing and Assurance Standards Board. |
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Management Advisory Services |
Consulting services that may provide advice and assistance concerning an entity's organization, personnel, finances, operations, systems, and other activites. |
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Principles Underlying an Audit Performed in Accordance with GAAS |
The ASB replaced the 10 GAAS with these principles, organized into 4 parts: Purpose of an Audit and Premise upon which an Audit id Conducted, Auditor Responsibilities, Audit Performance, and Audit reporting. |
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Public Accounting Firm |
An organization created to provide professional accounting related services, including auditing. Usually formed as a proprietorship or as a form of a partnership. |
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Standards of the PCAOB |
Standards regarding the conduct of financial statement audits for public companies. Currently consists primarily of standards and statements established by the ASB, as these statements and standards were adopted by the PCAOB in 2003 on an interim basis, though the PCAOB has added a few significant standards. |
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Statements on Auditing Standards (SAS) |
Statements issued by the AICPA's Auditing Standards Board. |
