Term
| what are public entities referred to as? |
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Definition
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Term
| what are private entities referred to as? |
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Definition
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Term
Name the rule making body for:
1)ISSUERS
2)NON-ISSUERS
3)Governmental entities
4)Foreign entities |
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Definition
1) PCAOB
2) AICPA Auditing Standards Board (ASB)
3) U.S. Gov't. Accountability Office (GAO)
4) International Auditing and Assurance Standards Board (IAASB) |
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Term
Name the standards for each:
1)ISSUERS
2)NON-ISSUERS
3)Governmental entities
4)Foreign entities |
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Definition
1)AS (Auditing Standards- 15 of them)
2)SAS (Statements of Auditing Standards- 126 of them)
3)Gov't. Auditing Standards (yellow book)
4) International Standards on Auditing (ISA) |
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Term
| what are the standards for audits? |
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Definition
| Generally Accepted Auditing Standards (GAAS) |
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Term
| What is the difference b/t auditing standards and auditing procedures? |
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Definition
Audit procedures are "steps" that you take to achieve the standards. (same from audit to audit)
Procedures are tailored for specific engagements. (can be different b/t engagements) |
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Term
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Definition
| quality of auditors' performance |
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Term
| Name Attestation 10 Commandments (think S-T-R-I-D-P-E-C-C-R-L |
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Definition
-Subject matter knowledge
-Training in attestation
-Reasonable criteria & consistent measurement
-Independence
-Due professional care
-planning & supervision
-evidence
-character of engagement
-conclusions about criteria
-reservations
-limitations on report use |
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Term
| Audit: General Standards (AU 200)- Responsibilities (think T-I-D) |
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Definition
-Training in auditing
-Independence
-Due professional care (prof. skepticism) |
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Term
| Audit: Standards of Field Work (AU 300)- Performance (think P-I-E) |
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Definition
-Planning & supervision
-Consideration of INTERNAL Control
-Sufficient, competent EVIDENCE |
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Term
| Audit: Standards of Reporting (AU 400-500)- Reporting (think G-I-I-E) |
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Definition
-Conformity with GAAP
-Inconsistency
-Inadequacy of disclosure
-Expression of opinion |
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Term
| AU-C Section (think what?) |
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Definition
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Term
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Definition
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Term
| Are there assurance standards? |
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Definition
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Term
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Definition
| sub amendments to AU to adress problems that arise |
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Term
| What are 2 overall objectives of audit? |
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Definition
-Obtain REASONABLE ASSURANCE about whether the F/S's as a whole are free from MATERIAL misstatement, whether due to fraud or error, thereby enabling the auditor to express an opinion on whether the F/S's are presented fairly, in all material respects, in accordance w/ an APPLICABLE FINANCIAL REPORTING FRAMEWORK (GAAP)
-Report om the F/S's and communicate as required by GAAS |
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Term
| Does reasonable assurance = absolute assurance? |
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Definition
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Term
| List the Requirements for an audit (Overall Objectives) |
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Definition
-Ethical requirements
-Prof. skepticism
-Prof. judgement
-Sufficient appropriate evidence & audit risk
-Conduct in accordance w/ GAAS |
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Term
| What are the ethical requirements? |
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Definition
-Public interest (primarily acting for public)
-Integrity
-Objectivity & Independence (no conflict of interest)
-Due Care (hustle like every other auditor out there)
-Scope & Nature of Services |
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Term
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Definition
| don't assume clients are right, and don't assume they are wrong; always ask for evidence; "trust but verify" |
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Term
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Definition
| when rules are hazy and you come up w/appropriate treatment; practice is only way to obtain this; pertains to vague decisions (the "grey" area) |
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Term
| PCAOB reviews ___ standards for audit and ___ standards for the CPA firms |
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Definition
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Term
| PCAOB monitors CPA firms to make sure they are monitoring _____. |
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Definition
| quality control standards |
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Term
| What are the control standards for accounting firms? |
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Definition
-Leadership Responsibilities for Quality on audits (bull's eye on partner)
-Relevant ethical requirements (independence)
-Acceptance & continuation of clients
-Assignment of engagement teams (not only staff members)
-Engagement performance
-Monitoring (firms must monitor all the above) |
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Term
| Who establishes standards (AS's) and who must approve them? |
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Definition
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Term
| What are INTERIM AUDITING STANDARDS and what can they be modified or amended by? |
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Definition
| ASB (from AICPA); can be modified by AS's (from PCAOB)--> any SAS's that don't conflict with PCAOB should be abided by |
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Term
| How does PCAOB monitor accounting firms and how often? |
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Definition
by inspections:
-Firms auditing > 100 public entities: annually
-Firms auditing < 100 pub. entities: every 3 years |
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Term
| What happens if PCAOB discovers a problem and the accounting firm does not correct it? |
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Definition
| Quality Control Criticism: made public by revealing deficiencies online |
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Term
| List the types of audit opinions |
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Definition
-Unmodified (OK)
-Modified (OK except for..)
-Adverse (not OK)
-Disclaimer (No Comment) |
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Term
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Definition
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Term
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Definition
| not as good as modified but still has value |
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Term
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Definition
| F/S's not fairly stated; auditor has right to give this opinion; client will make adjustments to avoid this which is why it is not common |
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Term
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Definition
-same as "adverse"
-can't see enough info. to give audit opinion |
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