ACCT 3222-3, WILEY, LSU EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
Audit Services - ANSWER ->services by an independent CPA that provide
financial statement users with (1) an opinion on whether the financial
statements are presented fairly, in all material respects, in accordance with
an applicable financial reporting framework and (2) an opinion on the
effectiveness of ICFR, which enhance the degree of confidence that
intended users can place in the financial statements
Attestation Services - ANSWER ->Services performed when an
independent practitioner, or CPA, is engaged to issue a report on subject
matter that is the responsibility of another party
Relationship of assurance, attestation, and auditing services from most to
least improved of quality (i.e., assurance) - ANSWER ->Audit - highest
quality/reasonable assurance (i.e., historical financial statements)
Attestation - mid quality/limited assurance (i.e., review of historical financial
statements, examination of internal controls, review of financial forecast)
Assurance - lowest quality (i.e., compilation of historical financial
statements, website security, IT operations, non-financial information)
Assurance Services - ANSWER ->independent professional services that
improve the quality of information, or its context, for decision makers
,Applicable financial reporting framework refers to - ANSWER ->the set of
standards used in preparing the historical financial statements (i.e., GAAP,
IFRS, or federal income tax basis of accounting)
Independent implies that the service is performed by - ANSWER -
>someone who was not involved with the creation of the information and
who is objective in the evaluation of the information
Quality refers to - ANSWER ->the relevance and realiability of the
information
Information refers to - ANSWER ->subject matter that can be financial or
nonfinancial, historical or prospective, standalone data or entire systems of
data, internal or external to a company
CPAs are the only _________ accounting professionals in the US and the
________ are issued at the ____________ level - ANSWER ->Licensed
accounting professionals in the US.
Licenses are issued at the state level, not federal
A state board of accountancy will only issue - ANSWER ->a licence to
practice after all three Es have been earned
CPA Es - ANSWER ->Education, Exam, and Experience
,Public companies, or issuers, in the US are required by federal government
to have - ANSWER ->an annual financial statement audit and an ICFR
audit
Private companies, or non-issuers, are _______ to have an annual audit by
federal government, but - ANSWER ->Not required by law, other interested
users may request audited financial statements (i.e., lenders)
ICFR - ANSWER ->Internal Control over Financial Reporting
Integrated Audit - ANSWER ->An audit that combines the financial
statement audit with an audit of the effectiveness of ICFR
The limitations of an audit are cause by - ANSWER ->1. the nature of
financial reporting
2. the nature of audit procedures
3. the need for the audit to be conducted within a reasonable period of time
at a reasonable cost
The nature of financial reporting refers to - ANSWER ->the use of judgment
when preparing financial statements due to the subjectivity required when
arriving at accounting estimates and judgment required when selecting and
applying accounting methods
The nature of audit procedures refers to - ANSWER ->Reliance on
evidence provided by the client and its managements, as well as the
concept of materiality
, Materiality - ANSWER ->the ability of information to influence decisions that
users make on the basis of the financial information of a specific reporting
entity
Compliance Audit - ANSWER ->an audit to determine whether the entity
has conformed with regulations, rules, or processes
Operational (Performance) Audit - ANSWER ->An assessment of the
economy, efficiency, and effectiveness of an organization's operations
Operational Audit economy, efficiency, and effectiveness refer to -
ANSWER>>Economy refers to the cost of inputs
Efficiency refers to the relationship between inputs and outputs
Effectiveness refers to the achievement of certain goals or the production
of a certain level of outputs
Internal Audit - ANSWER ->A function within an entity which generally
evaluates and improves risk management, internal control procedures, and
elements of the governance process
Those charged with governance - ANSWER ->Persons with responsibility
for overseeing the strategic direction of the entity and the obligations
related to the accountability of the entity
COMPLETE SOLUTIONS GUARANTEED PASS
Audit Services - ANSWER ->services by an independent CPA that provide
financial statement users with (1) an opinion on whether the financial
statements are presented fairly, in all material respects, in accordance with
an applicable financial reporting framework and (2) an opinion on the
effectiveness of ICFR, which enhance the degree of confidence that
intended users can place in the financial statements
Attestation Services - ANSWER ->Services performed when an
independent practitioner, or CPA, is engaged to issue a report on subject
matter that is the responsibility of another party
Relationship of assurance, attestation, and auditing services from most to
least improved of quality (i.e., assurance) - ANSWER ->Audit - highest
quality/reasonable assurance (i.e., historical financial statements)
Attestation - mid quality/limited assurance (i.e., review of historical financial
statements, examination of internal controls, review of financial forecast)
Assurance - lowest quality (i.e., compilation of historical financial
statements, website security, IT operations, non-financial information)
Assurance Services - ANSWER ->independent professional services that
improve the quality of information, or its context, for decision makers
,Applicable financial reporting framework refers to - ANSWER ->the set of
standards used in preparing the historical financial statements (i.e., GAAP,
IFRS, or federal income tax basis of accounting)
Independent implies that the service is performed by - ANSWER -
>someone who was not involved with the creation of the information and
who is objective in the evaluation of the information
Quality refers to - ANSWER ->the relevance and realiability of the
information
Information refers to - ANSWER ->subject matter that can be financial or
nonfinancial, historical or prospective, standalone data or entire systems of
data, internal or external to a company
CPAs are the only _________ accounting professionals in the US and the
________ are issued at the ____________ level - ANSWER ->Licensed
accounting professionals in the US.
Licenses are issued at the state level, not federal
A state board of accountancy will only issue - ANSWER ->a licence to
practice after all three Es have been earned
CPA Es - ANSWER ->Education, Exam, and Experience
,Public companies, or issuers, in the US are required by federal government
to have - ANSWER ->an annual financial statement audit and an ICFR
audit
Private companies, or non-issuers, are _______ to have an annual audit by
federal government, but - ANSWER ->Not required by law, other interested
users may request audited financial statements (i.e., lenders)
ICFR - ANSWER ->Internal Control over Financial Reporting
Integrated Audit - ANSWER ->An audit that combines the financial
statement audit with an audit of the effectiveness of ICFR
The limitations of an audit are cause by - ANSWER ->1. the nature of
financial reporting
2. the nature of audit procedures
3. the need for the audit to be conducted within a reasonable period of time
at a reasonable cost
The nature of financial reporting refers to - ANSWER ->the use of judgment
when preparing financial statements due to the subjectivity required when
arriving at accounting estimates and judgment required when selecting and
applying accounting methods
The nature of audit procedures refers to - ANSWER ->Reliance on
evidence provided by the client and its managements, as well as the
concept of materiality
, Materiality - ANSWER ->the ability of information to influence decisions that
users make on the basis of the financial information of a specific reporting
entity
Compliance Audit - ANSWER ->an audit to determine whether the entity
has conformed with regulations, rules, or processes
Operational (Performance) Audit - ANSWER ->An assessment of the
economy, efficiency, and effectiveness of an organization's operations
Operational Audit economy, efficiency, and effectiveness refer to -
ANSWER>>Economy refers to the cost of inputs
Efficiency refers to the relationship between inputs and outputs
Effectiveness refers to the achievement of certain goals or the production
of a certain level of outputs
Internal Audit - ANSWER ->A function within an entity which generally
evaluates and improves risk management, internal control procedures, and
elements of the governance process
Those charged with governance - ANSWER ->Persons with responsibility
for overseeing the strategic direction of the entity and the obligations
related to the accountability of the entity
