Audit (With errorless answers)

Auditingcorrect answers - The accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. (should be done by a competent, independent person) Evidencecorrect answers - Any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. Independent Auditorscorrect answers - certified public accountants or accounting firms that perform audits of commercial and non-commercial entities. Audit Reportcorrect answers - Communicates the auditor's findings to users; must inform readers of the degree of correspondence between the information audited and established criteria. Accountingcorrect answers - The recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making. Information Riskcorrect answers - The risk that information upon which a business decision is made is inaccurate. Assurance Servicecorrect answers - An independent professional service that improves the quality of information for decision makers. Sarbanes-Oxley Actcorrect answers - A federal securities law passed in 2002 that provides for additional regulation of public companies and their auditors; the Act established the Public Company Accounting Oversight Board (PCAOB) and also requires auditors of larger public companies to audit the effectiveness of internal control over financial reporting. Attestation Servicecorrect answers - A type of assurance service in which the CPA firm issues a report about a subject matter or assertion that is the responsibility of another party. Audit of Historical Financial Statementscorrect answers - A form of attestation service in which the auditor issues a written report stating whether the financial statements are in material conformity with accounting standards. Internal Control Over Financial Reportingcorrect answers - An engagement in which the auditor reports on the effectiveness of internal control over financial reporting; such reports are required for accelerated filer public companies under Section 404 of the Sarbanes-Oxley Act. Review of Historical Financial Statementscorrect answers - A form of attestation in which a CPA firm issues a written report that provides less assurance than an audit as to whether the financial statements are in material conformity with accounting standards. Operational Auditcorrect answers - A review of any part of an organization's operating procedures and methods for the purpose of evaluating efficiency and effectiveness. Compliance Auditcorrect answers 1. A review of an organization's financial records performed to determine whether the organization is following specific procedures, rules, or regulations set by some higher authority. 2. An audit performed to determine whether an entity that receives financial assistance from the federal government has complied with specific laws and regulations. Financial Statement Auditcorrect answers - An audit conducted to determine whether the overall financial statements of an entity are stated in accordance with specified criteria (usually U.S. or international accounting standards).