Term
|
Definition
| An issuer is a public company that issues securities and files with the SEC. They are required by law to undergo an audit. |
|
|
Term
|
Definition
| A nonissuer is a private company that does not issue securities or file with the SEC. |
|
|
Term
| What are the three types of audits? |
|
Definition
| The three types of audits are financial statement audit, internal control review, and integrated audit. |
|
|
Term
| What is a financial statement audit? |
|
Definition
| A financial statement audit is carried out for a nonissuer and provides an opinion about the financial statements only. |
|
|
Term
| What is an internal control review? |
|
Definition
| An internal control review can be requested by a nonissuer in addition to a financial statement audit. |
|
|
Term
| What is an integrated audit? |
|
Definition
| An integrated audit is conducted for the issuer and requires auditing of the financial statements as well as the internal controls within the entity. |
|
|
Term
| How is the scope of an audit determined? |
|
Definition
| The scope of an audit is determined by the auditor, the audit committee, and management. The reasons for an audit can include regulations, checking company records, and internal errors, or discovering fraud within the company or entity. The reasons define the scope of an audit, which is determined by factors such as the audit period, specificity, and taxation. |
|
|
