Term Becasue engagement risk is a significant factor, audit firms use a _________ to selectively choose which clients to engage with. | | Definition |
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Term AS 7 applies to all audits of public companies and, thus, requires engagement quality control reviews to be conducted on… | | Definition every audit of public companies. | |
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Term Both __________________ standards require that audit firms establish formal systems of quality control to ensure an acceptable level of audit quality. | | Definition |
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Term What term refers to the risk of loss associated with accepting an audit engagement? | | Definition Engagement risk refers to the risk of loss (e.g., litigation exposure, reputation impairment) associated with the acceptance of an audit engagement. | |
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Term The AICPA requires a peer review every….. | | Definition |
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Term Which auditing firms are subject to annual PCAOB inspections? | | Definition Auditing firms registered with the PCAOB and audit 100 or more public issuers are subject to annual inspections. | |
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Term The ______________ is one who has no engagement responsibilities with the client other than to review the work performed by the engagement team. | | Definition |
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Term A predecessor auditor requires _________ from the client's management prior to responding to inquiries from the incoming auditor regarding the predecessor auditor's experiences in auditing the client. | | Definition |
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Term Which document contains general overview of the agreement between the client and the auditor, including the scope of the engagement, expectations of management and the auditor, and the general nature of work to be performed and deliverable to be produced? | | Definition The engagement letter contains a general overview of the agreement between the client and the auditor, and it establishes expectations of both parties in an engagement. | |
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Term As illustrated in the HealthSouth fraud case, audit failures frequently lead to ________________ that are far greater than audit fees received. | | Definition litigation and reputation losses | |
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Term The ______ strategically selects audit engagements that are most likely to contain deficiences when performing its annual inspections. | | Definition |
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Term Audit firms are given _________ to rectify and address specific issues identified in the public portions of PCAOB inspections. If the firm does not remedy the defects within the __________, the private portion of the report is made public by the PCAOB. | | Definition |
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Term The engagement quality control review should be completed _______ to the release of the auditor report. | | Definition |
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Term Contacting the predecessor auditor is required under _____. However, the current (successor) auditor should obtain management's permission before contacting the prior auditor. | | Definition |
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Term Prior to accepting an audit client, the auditor is required to determine whether the _______________have been prepared according to an acceptable framework. | | Definition |
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Term When establishing an understanding with an audit client, that understanding should be documented | | Definition Through a written communication with the client-because the professional standards state that the communication should be in writing. | |
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Term What actions should a CPA firm take to comply with the AICPA's quality control standards? | | Definition Establish policies to ensure that the audit work meets applicable professional standards. | |
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Term What is the responsibility of a successor auditor with respect to communicating with the predecessor auditor in connection with a prospective new audit client? | | Definition The successor auditor should obtain permission from the prospective client to contact the predecessor auditor. | |
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Term Within the context of quality control, a primary purpose of the engagement performance element is to help ensure that | | Definition Engagements are adequately supervised. | |
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Term What factor most likely would lead a CPA to conclude that a potential audit engagement should not be accepted? | | Definition It is unlikely that sufficient appropriate evidence is available to support an opinion on the financial statements. | |
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Term What are the key areas the auditor should seek to obtain an understanding of the audit client? | | Definition The client's operations, The entity's financing and the entity's objectives and strategies | |
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Term Having an ____________________ helps the auditor both assess the risk of material misstatement and evaluate identified misstatements. | | Definition understanding of the entity and its environment | |
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Term | Definition the the amount that could reasonably be expected to influence the economic decisions of users made on the basis of the financial statement. | |
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Term | Definition likelihood that the auditor will provide an unqualified (i.e., clean) audit opinion on a set of financial statements that are, in fact, materially misstated. | |
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Term Understanding the ______________ helps the auditor to better assess the risk of material misstatements in the financial statements and to better evaluate misstatements discovered during the audit. | | Definition entity and its environment | |
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Term The auditor generally selects a ______________ that is relevant to financial statement users. | | Definition |
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Term The auditor has a responsibility to perform audit procedures (e.g., contact predecessor auditor) to obtain assurance regarding the beginning balances, but the auditor does not have to perform a ___________ of the prior year's financial statements. | | Definition |
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Term What are 3 qualitative factors that the auditor should consider when determining overall planning materiality? | | Definition 1. Specific debt covenant requirements, 2. Managments ability to meet earnings expectations and 3. The company's ability to maintain earnings growth | |
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Term What account is generally NOT considered a part of the expenditure cycle? | | Definition Sales -NOT (Cash, COGS, and AP are considered to be part of the expenditure cycle) | |
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Term Materiality is determined by both __________ of the misstatement. | | Definition |
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Term Audits are designed to identify __________ misstatements | | Definition |
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Term When auditors are determining the dollar amount that would be considered material to the financial statements, they consider financial statement _______________ rather than determining what amounts would be material to each individual financial statement user | | Definition users in general (i.e., as a group) | |
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Term Which management assertions is the auditor most likely to be concerned about with respect to a client's liability accounts? | | Definition Completeness - auditors are generally most concerned that management has completely recorded all of its liabilities on the financial statements (i.e., completeness assertion). | |
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Term The _________ is an activity in the revenue cycle. | | Definition |
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Term Prior to commencing fieldwork, an auditor usually discusses the general audit strategy with the client’s management. What matters do the auditor and management agree upon at this time? | | Definition The coordination of the assistance of the client’s personnel in data preparation. | |
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Term Prior to commencing fieldwork, an auditor usually discusses the general audit strategy with the client’s management. What details do management and the auditor usually agree upon at this time? | | Definition The schedules and analyses that the client’s staff should prepare. | |
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Term Management’s emphasis on meeting projected profit goals most likely would significantly influence an entity’s control environment when | | Definition A significant portion of management compensation is represented by stock options. | |
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Term Following the Professional Standards what are 3 of the assertions made by management for account balances? | | Definition Completeness, Existence and Valuation and Allociation | |
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Term The element of the audit planning process most likely to be agreed upon with the client before implementation of the audit strategy is the determination of the | | Definition Timing of inventory observation procedures to be performed. | |
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Term A senior-level manager insists that the accounting manager over accounts receivables adjust the estimate for allowance for doubtful accounts to be more liberal (i.e., fewer people will default on their receivables). The senior-level manager knows that the revised estimates are inaccurate, but he insists on the change because it will increase the company's net income for the quarter to a point where he will receive a bonus. This scenario describes an example of: | | Definition Financial statement fraud | |
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Term Efficiency and effectiveness of the audit are typically at _____________. | | Definition odds with one another. Effectiveness requires high levels of resources of time and effort while efficiency involves reducing the amount of resources devoted to the audit. | |
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Term Auditing standards require that ______ key members of an audit team participate in the brainstorming session. | | Definition ALL - Auditing standards require that all key members of an audit team participate in the brainstorming session. Key personnel is generally interpreted as meaning most members of the engagement team (e.g., the partner in charge, senior manager, manager, seniors, etc.). | |
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Term The primary distinction between a material error and a material fraud is the … | | Definition intent of the party that created the misstatement. | |
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Term _____________ of whether the error is due to error or fraud, the auditor is responsible for obtaining reasonable assurance regarding the fair presentation of the financial statements | | Definition |
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Term ___________ is defined as the risk that the auditor issues an unqualified opinion (i.e., clean opinion) on a set of financial statements that are, in fact, materially misstated. | | Definition |
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Term | Definition |
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Term ___________________ - refers to the auditor providing a clean or unqualified opinion on the financial statements when in fact a material misstatement exists. | | Definition A Type II error and Audit Risk share the same definition. | |
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Term Auditors are responsible for obtaining reasonable assurance that the financial statements are free of material misstatements caused by ___________. | | Definition |
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Term As reported in the COSO 2010 fraud study cited in this topic, _______________ are more likely to have increased fraud risks. | | Definition |
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Term Of the three main categories of occupational fraud, which has the distinction of being (1) the least common and (2) the most costly? | | Definition Fraudulent financial reporting | |
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Term Audit procedures performed near year end are generally considered __________ than procedures performed at interim periods. | | Definition |
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Term Use the audit risk model to calculate audit risk (to the closest percent) in the following circumstance: CR 40%. IR 40% and DR 40% | | Definition |
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Term In a financial statement audit, inherent risk is evaluated to help an auditor assess…. | | Definition The susceptibility of a financial statement assertion to a material misstatement assuming there are no related controls. | |
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Term What best describes the auditor’s responsibility regarding the detection of material errors and fraud? | | Definition Auditing procedures may or may not need to be extended if the auditor’s analysis indicates the existence of fraud risk factors. | |
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Term Inherent risk and control risk differ from detection risk in that inherent risk and control risk are | | Definition Functions of the client and its environment while detection risk is not. | |
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Term In which circumstance is the confirmation of receivables on October 31 most likely for a client with a December 31 year-end? | | Definition Appropriate audit tests indicate that control risk for receivables is low | |
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Term Attest services __________ issuing a report regarding the subject matter examined. | | Definition |
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Term A common cause for _______ misstatements is pressure to meet analyst expectations. | | Definition |
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Term _______ services do include prospective (forward-looking) information. | | Definition |
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Term The American Institute of Certified Public Accountants (AICPA) defines "objectivity" as a state of mind, a quality that imposes all of the following obligations | | Definition Intellectual honestyFree of conflicts of interest Impartiality | |
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Term Audit partners in the U.S. can serve a particular client for no more than __ years consecutively. | | Definition Audit partners are limited to serving a particular client for 5 years consecutively. | |
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Term An _________ audit opinion is a positive opinion regarding the financial statements indicating that the auditor believes the financial statements are fairly stated without qualification. | | Definition |
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Term When auditing financial statements, auditors seek to identify all _______ misstatements in the financial statements. | | Definition material auditors seek to identify only material misstatements. While they may identify misstatements that are not material in nature, they do not design their audit procedures to identify non-material misstatements. | |
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Term Auditors are required to continue to learn throughout their careers with a certain number of hours of continuing professional education in order to maintain their _______ and to continue to provide high quality audits. | | Definition |
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Term SysTrust and WebTrust are types of __________ aimed at improving the quality of information relating to IT systems and websites. | | Definition |
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Term High audit quality improves both the quality of the financial statements as well as the __________ from users. | | Definition |
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Term Sellers of high quality vehicles ____________ their vehicles at prices below what their vehicle is worth, so they remove them from the market. The average quality of the vehicles continues to drop until only low quality vehicles remain. | | Definition |
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Term Auditors seek to provide reasonable assurance, not ________ assurance. | | Definition |
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Term The term '__________' refers to implicit or explicit claims made by management in the preparation of the financial statements. | | Definition |
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Term Knowing that the auditor will be evaluating the financial statements will cause management to be more careful in preparing them, reducing the likelihood of both _______________ misstatements. In addition, auditors frequently find material misstatements in the course of the audit which can then be corrected by management. | | Definition intentional and unintentional | |
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Term all items would most likely result in unintentional not intentional misstatements. | | Definition Weak internal controlsHuman judgment errors Unqualified client staff | |
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Term Generally Accepted Auditing Standards (AU 150)-GENERAL | | Definition 1. Technical training and proficiency2. Independence 3. Due professional care | |
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Term Generally Accepted Auditing Standards (AU 150)-FIELD WORK | | Definition 4. Adequate planning and supervision5. Sufficient understanding of internal control 6. Sufficient appropriate evidential matter | |
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Term Generally Accepted Auditing Standards (AU 150)-REPORTING | | Definition 7. Conformity with GAAP8. Consistency in application of accounting principles9. Adequate disclosures 10. Express an opinion | |
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Term The _____ issues auditing standards for audits of public companies in the U.S.. | | Definition |
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Term Requirements for physical inventory count is in response to the | | Definition |
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Term The ___ has congressional authority | | Definition |
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Term The _____________ requires that the SEC ensure that rigorous auditing standards are set and adhered to. | | Definition Securities Exchange Act of 1934 | |
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Term Obtaining an understanding of the clients internal controls is one of the _______. | | Definition 10 (GAAS) Generally Accepted Auditing Standards | |
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Term The standards of independence, proficiency and training, and due professional care are included in the ___________ category | | Definition |
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Term ISA auditing standards are issued by the ______. | | Definition |
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Term The fact that Mr. Musica knew what the auditors would do during the course of the audit is one of the reasons the _____________ was able to be carried out for so long. | | Definition |
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Term The ____ issues auditing standards for audits of nonpublic companies in the U.S | | Definition |
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Term The Auditing Standards Board of the ______ issues SAS auditing standards. | | Definition |
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Term The __________ have been working to converge standards. | | Definition |
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Term The McKesson & Robbins fraud led to the addition of the requirement to send confirmations for ____________ as well as the requirement to observe the ______________. | | Definition Accounts Receivables physical count of inventory
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Term Independence in mental attitude is one of the 10 GAAS that falls under the ___________ category. | | Definition |
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Term The PCAOB's 10 GAAS are broken into the following three categories: | | Definition Fieldowork, General, and Reporting Standards | |
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Term The __________ have been working to converge standards. The PCAOB has not worked to converge standards with either of the other two standard-setting bodies. | | Definition |
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Term Statements on Auditing Standards are enforceable under the | | Definition AICPA Code of Professional Conduct. | |
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Term Statements on Standards for Accounting and Review Services are enforceable under the | | Definition AICPA Code of Professional Conduct. | |
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Term Statements on Standards for Valuation Services are enforceable under the | | Definition AICPA Code of Professional Conduct. | |
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Term What AICPA standard did the PCAOB not adopt as a part of its interim standards? | | Definition the PCAOB did not adopt the AICPA’s Accounting and Review Services Standards because they only apply to nonpublic companies ("non-issuers"). | |
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Term What underlies the application of generally accepted auditing standards, particularly the standards of fieldwork and reporting? | | Definition the elements of materiality and audit risk underlie the application of all the standards, particularly the standards of fieldwork and reporting. | |
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Term Auditors involved in governmental auditing should | | Definition use the US Governmental Accountability Office creates audit standards to be used in governmental auditing. All relevant standards of the AICPA for financial related audits have been incorporated by reference as part of the generally accepted auditing standards. | |
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Term The Public Company Accounting Oversight Board (PCAOB) has authority to establish _______ relating to public companies? | | Definition PCAOB may establish attestation standards, independence standards, auditing standards, and quality control standards. | |
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Term The Department of Labor (DOL) most frequently conducts financial and performance audits following | | Definition the DOL conducts most of its financial and performance audits following Government Auditing Standards, including audits of compliance with laws, evaluation of economy and efficiency of operations, and evaluation of effectiveness in achieving program results. | |
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Term International Standards on Auditing are issued by | | Definition International Auditing and Assurance Standards Board of the International Federation of Accountants. | |
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Term | Definition |
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Term | Definition |
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Term | Definition informing investors of significant events | |
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Term | Definition annual meeting and shareholder voting information | |
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Term The Sarbanes-Oxley Act of 2002 was passed by Congress in response to several high-profile financial statement frauds. This law – commonly referred to as SOX – established the | | Definition PCAOB and granted it the authority to serve as the standard setter for audits of SEC registrants | |
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Term A negligence law suit brought under which of the laws results in the burden of proof being shifted more heavily to the auditor? | | Definition The Securities Act of 1933 results in the highest standard of care for auditors due to the fact that investors are more heavily reliant on audited financial statements of companies issuing initial filings than they are for companies that have a long record of audited financial statements. | |
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Term Which of the laws requires audits of financial statements that are filed with the SEC for the initial sale of securities? | | Definition The Securities Act of 1933 requires audits of the financial statements filed with the SEC for initial sale of securities. | |
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Term AICPA developed the Code of Professional Conduct-6 principles | | Definition 1. Responsibilities2. The Public Interest3. Integrity4. Objectivity and Independence5. Due Care 6. Scope and Nature of Services | |
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Term | Definition In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities. | |
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Term | Definition Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism. | |
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Term | Definition To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity. | |
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Term Objectivity and Independence | | Definition A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services. | |
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Term | Definition A member should observe the profession's technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability | |
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Term Scope and Nature of Services | | Definition A member in public practice should observe the Principles of the Code of Professional Conduct in determining the scope and nature of services to be provided. | |
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Term In addition to these six principles of professional conduct, the Code of Professional Conduct includes guidelines and rules with specific applications. These rules are divided into what catagories | | Definition Section 100: Independence, Integrity and ObjectivitySection 200: General Standards Accounting PrinciplesSection 300: Responsibilities to ClientsSection 400: Responsibilities to Colleagues Section 500: Other Responsibilities and Practices | |
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Term The demonstration of a commitment to excellence is part of the _________ principle of professional conduct. | | Definition |
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Term Auditors need to be independent in _________ as well as independent in _____ when conducting the audit. | | Definition |
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Term | Definition |
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Term | Definition |
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Term | Definition informing investors of significant events | |
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Term | Definition annual meeting and shareholder voting information | |
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Term The Sarbanes-Oxley Act of 2002 was passed by Congress in response to several high-profile financial statement frauds. This law – commonly referred to as SOX – established the | | Definition PCAOB and granted it the authority to serve as the standard setter for audits of SEC registrants | |
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Term Auditors are prohibited from receiving contingent fees which are defined as fees that are dependent _______________. | | Definition on the outcome of the audit. | |
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Term List examples that represents an act discreditable which is prohibited under the code of professional conduct? | | Definition A CPA fails to file a tax return or pay a tax liabilityA CPA fails to follow the expectations outlined in the code of professional conduct An auditor fails to follow auditing standards developed by the AICPA | |
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Term The auditor may need to violate _______________ in order to comply with a valid subpoena or when laws or regulations require the disclosure of client information. | | Definition the client confidentiality rule | |
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Term What rule is being violated when: An auditor is proud of the fact that they have a reputation of providing unqualified audit opinions to their clients and uses this fact to solicit new clients. Is this a violation of the code of professional conduct? | | Definition This is a violation of the code of professional conduct's prohibition against false, misleading, or deceptive advertising. Specifically, this form of advertising creates false or unjustified expectations for favorable results in the audit. | |
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Term The PCAOB suggested that one way to improve the application of professional skepticism is to set the proper tone at the ____ of the audit firm organization | | Definition |
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Term Covered members are ______________ that are required to comply with the AICPA's independence rules. Note also, that covered members' immediate family members must also comply with AICPA independence rules. | | Definition |
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Term The Securities Act of ______ requires audits of the financial statements filed with the SEC for initial sale of securities. | | Definition |
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Term Auditors are _____________ to evaluate their client's compliance with all laws and regulations. However, if they determine that a client has not complied with a law or regulation, they should determine if and how the noncompliance impacts the financial statements. In some cases, the auditor has a responsibility to report illegal acts to others outside of the client organization. | | Definition |
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Term The Securities Exchange Act of ____ requires public companies to file these periodic reports with the SEC. | | Definition 1934, 10-Ks, 10-Qs, and 8-Ks | |
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Term When an accountant is not independent, the accountant is precluded from issuing a: | | Definition Review report a review is an attest engagement that results in limited assurance; accordingly, independence is required. | |
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Term In which situation would a CPA firm be independent with respect to an audit client? | | Definition A professional employee assigned to the engagement has a spouse that is employed as a salesperson by the client. A covered member’s spouse may be employed by an attest client providing that he or she is not employed in a key position.
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Term A CPA who is not in public practice is obligated to follow which of the rules of conduct? | | Definition Integrity and objectivity. | |
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Term A CPA firm must ____________ before it can participate in the preparation of an audit report of a company registered with the Securities and Exchange Commission (SEC)? | | Definition Register with the Public Company Accounting Oversight Board- because the Sarbanes-Oxley Act requires CPA firms that audit companies that are registered with the Securities and Exchange Commission be registered with the Public Company Accounting Oversight Board. | |
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Term When reporting on both the audit of financial statements and the audit of internal control, the auditor can... | | Definition |
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Term __________, not the auditor, has primary responsibility for the proper functioning of a company's system of internal control. | | Definition |
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Term Monitoring includes both ______________ monitoring activities. | | Definition |
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Term If the auditor believes the client's internal controls are effective, she should issue which type of audit opinion? | | Definition The auditor should issue an unqualified opinion on internal controls if she believes the controls are effective. | |
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Term The auditor has to obtain an _________ of their client's controls, regardless of whether or not she is performing an internal control audit or an audit of financial statements only. | | Definition |
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Term The five components of the COSO framework are: | | Definition Control Environment, Risk Assessment, Control Activities, Information & Communication, and Monitoring. | |
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Term The _____ auditor is required by the Sarbanes-Oxley Act of 2002 to conduct both the audit of internal control and the audit of the client's financial statements. Thus, this approach is called an integrated audit. | | Definition |
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Term The auditors opinions can be either ________________. | | Definition unqualified or adverse No other audit opinions - including qualified - are available for the report on the audit of internal control. | |
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Term Using a pure __________ approach means that the auditor is not going to rely on controls for any evidence. Therefore, the auditor would not spend significant resources to test controls. | | Definition |
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Term If the auditor chooses to rely on internal controls for audit evidence, he or she would need to thoroughly __________. | | Definition |
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Term Auditors are primarily concerned with the __________ of internal control. | | Definition |
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Term COSO was originally founded by five organizations: _________________ | | Definition AICPA, AAA, FEI, IMA, IIA. | |
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Term Auditing standards only require that the auditor publicly disclose the presence of __________ in the auditor's report to the public. | | Definition |
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Term A client erroneously recorded a large purchase twice. what would be most likely to detect this error in a timely and efficient manner? | | Definition reconciling the vendors’ monthly statements with the subsidiary ledger for payables should disclose a difference in the month following the error. | |
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Term Three parts of the required content of management’s report on internal control under the standards of the Public Company Accounting Oversight Board? | | Definition -The criteria used for assessment.-Management’s acknowledgement of responsibility for internal control -Management’s assessment of internal control. | |
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Term What audit techniques ordinarily would provide an auditor with the least assurance about the operating effectiveness of an internal control activity? | | Definition Preparation of system flowcharts. while auditors may use system flowcharts to document internal control and find weaknesses in the design of internal control, such flowcharts do not reveal whether the controls are operating effectively. | |
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Term During the audit the independent auditor identified the existence of a significant deficiency in the client’s internal control and communicated this finding in writing to the client’s management and to those charged with governance. The auditor should | | Definition Document the matter in the working papers and consider the effects of the condition on the audit. | |
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Term What is a step in an auditor’s decision to assess the risk of material misstatement at a low level by relying on controls? | | Definition Identify specific controls that are likely to detect or prevent material misstatements. assessing the risk of material misstatement below the maximum based on controls involves (1) identifying specific controls relevant to specific assertions, and (2) performing tests of controls to evaluate their effectiveness. | |
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Term The auditor is required to document _________________ This is the same thing as the materiality threshold. | | Definition "the amount below which misstatements would be regarded as immaterial." | |
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Term As the level of acceptable sampling risk _____________, the required sample size will decrease. | | Definition |
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Term __________ the sample size reduces sampling risk, but it does not have an effect on non-sampling risk | | Definition |
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Term The term "__________" refers to the individual items to be sampled and tested from a population | | Definition |
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Term the auditor is required to consider the likelihood that an observed deviation/misstatement is caused by | | Definition |
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Term Examples of a cause of non-sampling risk? | | Definition -The auditor uses an inappropriate audit procedure to test an assertion-The auditor uses a correct audit procedure, but implements the procedure incorrectly -The auditor misinterprets audit evidence obtained from a properly-performed audit procedure | |
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Term An auditor selects all invoices during the month of December (the final month of the client's fiscal year) for testing. This is an example of ___________ | | Definition |
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Term Non-statistical sampling techniques do not require _____________ | | Definition |
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Term Compute the estimated population deviation rate for the following scenario: The auditor tests a sample of 73 instances of a control functioning out of a population of 5,300. She finds that the control failed to function properly in 6 cases.
| | Definition 8.2% The estimated population deviation rate is equal to the sample deviation rate which is computed as 6/73=.082 (8.2%). | |
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Term Auditors must document ___________ discovered during the audit, whether they were corrected by management or not. | | Definition |
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Term Professional auditing guidance suggests that auditors define a misstatement ____________ | | Definition |
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Term The __________ to be used in a given scenario is not specified in the auditing standards. | | Definition |
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Term An auditor may decide to increase the risk of incorrect rejection when | | Definition The cost and effort of selecting additional sample items is low. | |
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Term If an auditor, planning to use statistical sampling, is concerned with the number of a client’s sales invoices that contain mathematical errors, the auditor would most likely utilize | | Definition |
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Term There are many kinds of statistical estimates that an auditor may find useful, but basically every accounting estimate is either of a quantity or of an error rate. The statistical terms that roughly correspond to "quantities" and "error rate," respectively, are | | Definition Variables and attributes. | |
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Term An auditor plans to examine a sample of 20 checks for countersignatures as prescribed by the client’s internal control activities. One of the checks in the chosen sample of 20 cannot be found. The auditor should consider the reasons for this limitation and | | Definition Treat the missing check as a deviation for the purpose of evaluating the sample. | |
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Term Which of the following statements is correct about the sample size in statistical sampling when testing internal controls? | | Definition The auditor should consider the tolerable rate of deviation from the controls being tested in determining sample size. | |
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