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16 Cards in this Set
- Front
- Back
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Generally accepted accounting standards GAAS |
Established by AICPA and PCAOB |
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Professional skepticism |
Questioning mind, alert to conditions that may indicate misstatement due to fraud or error, and critical assessment of audit evidence |
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Reasonable assurance |
Implies low level of risk remaining that the auditors express an opinion that that the financial statements are properly stated when they are not |
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Qualified opinion |
Except for the fact of the matter to which the qualification relates, the financial statements are fairly presented. |
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Adverse opinion |
Financial statements are not fairly presented |
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Disclaimer of opinion |
Unable to determine the overall fairness of the financial statements. Usually due to very limited scope of auditor examination |
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International Financial Reporting Standards (IFRS) |
Objective of developing a single set of high-quality understandable and enforceable global accounting standards. Developed by International Acxounting Standards Board (IASB) |
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International Auditing and Assurance Standards Board (IAAS ) |
Develops international audit standards. Part of the International Federstion of Accountants |
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Elements of quality control |
Leadership responsibilities for quality within the firm, relevant ethical requirements, acceptance and continuance of client relationships and specific engagements, human resources, engagement performance, monitoring. |
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Leadership responsibilities for quality with the firm |
Quality needs to be essential in performing engagements, and those assigned have sufficient and appropriate experience, ability, and authority. |
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Relevant ethical requirements |
Firm and personnel comply with relevant ethical requirements - independence. |
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Acceptance and Continuance of client relationships and specific engagements |
Undertake and continue relationships and engagements if the firm is competent, complies with legal and ethical requirements and has considered client integrity. |
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Human resources |
Has sufficient personnel with needed competence, capabilities, and commitment |
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Engagement performance |
Firms engagements are in accordance with professional standard and regulatory and legal requirements with policies and procedures addressing engagement performance, supervision responsibilities, and review responsibilities. |
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Monitoring |
Policies and procedures relating to quality control are relevant, adequate and operate effectively |
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FASB Concepts Statements |
Used by FASB for nonauthoritative guidance when there is no authoritative guidance available. |
