AUD CPA Glossary – Complete Study Guide
Account Balances Correct Ans - One of three categories of financial
statement assertions, relating primarily to assets, liabilities, and equity
interests.
Accounting Estimate Correct Ans - An approximation of a financial
statement element, item, or account used because data either is not readily
available or is dependent upon the outcome of future events.
Accounts Payable Confirmation Correct Ans - A request for
independent verification of payables.
Accounts Receivable Confirmation Correct Ans - A request for
independent verification of receivables. Note that confirming accounts
receivable is a required, generally accepted auditing producre.
Accuracy Correct Ans - A financial statement assertion in the
"transactions and events" category indicating that amounts and other data
relating to recorded transactions and events have been recorded properly.
Accuracy and Valuation Correct Ans - A financial statement
assertion in the "presentation and disclosure" category indicating that
financial and other information are disclosed fairly and at appropriate
amounts.
Activity Ratio Correct Ans - A ratio that measures how effectively
an enterprise is using its assets.
Adverse Opinion Correct Ans - An auditor's report stating that the
financial statements "do not present fairly..."
Aging Schedule Correct Ans - A listing of accounts receivable
categorized by age (i.e., current, 30 to 60 days, 60 to 90 days, etc.).
Agreed-upon Procedures Correct Ans - An engagement in which a
practitioner is engaged to issue a report of findings based on specific
agreed-upon procedures.
, AICPA Code of Professional Conduct Correct Ans - Guidelines for
the behavior of members of the American Institute of Certified Public
Accountants (AICPA) in the conduct of their professional affairs.
Allowance for Sampling Risk Correct Ans - In sampling, a "cushion"
for protection against undetected deviations that is added to the sample
deviation rate to arrive at the upper deviation rate.
Analyst Correct Ans - An IT (Information Technology) department
employee who determines system requirements and designs a processing
system to meet those requirements.
Analytical Procedures Correct Ans - Evaluations of financial
information made by a study of plausible relationships among both
financial and nonfinancial data.
Applicable Financial Reporting Framework Correct Ans - The
financial reporting framework that is acceptable in view of the nature of
the entity and the objective of the financial statements, or that is required
by law or regulation.
Application Controls Correct Ans - Information processing controls
that apply to the processing of individual "applications" (e.g., controls
surrounding receivables, controls surrounding payroll, etc.).
Appropriate (Appropriateness of Audit Evidence) Correct Ans - The
quality of being both reliable (valid, factual, objective, and supportable)
and relevant (related to the financial statement assertion under
consideration).
Articles of Incorporation Correct Ans - A document filed with the
state to create a corporation.
Assertion Correct Ans - A declaration about whether a subject
matter is based on or in conformity with selected criteria.
Association with Financial Statements Correct Ans - A relationship
that arises when an accountant consents to the use of his or her name in
Account Balances Correct Ans - One of three categories of financial
statement assertions, relating primarily to assets, liabilities, and equity
interests.
Accounting Estimate Correct Ans - An approximation of a financial
statement element, item, or account used because data either is not readily
available or is dependent upon the outcome of future events.
Accounts Payable Confirmation Correct Ans - A request for
independent verification of payables.
Accounts Receivable Confirmation Correct Ans - A request for
independent verification of receivables. Note that confirming accounts
receivable is a required, generally accepted auditing producre.
Accuracy Correct Ans - A financial statement assertion in the
"transactions and events" category indicating that amounts and other data
relating to recorded transactions and events have been recorded properly.
Accuracy and Valuation Correct Ans - A financial statement
assertion in the "presentation and disclosure" category indicating that
financial and other information are disclosed fairly and at appropriate
amounts.
Activity Ratio Correct Ans - A ratio that measures how effectively
an enterprise is using its assets.
Adverse Opinion Correct Ans - An auditor's report stating that the
financial statements "do not present fairly..."
Aging Schedule Correct Ans - A listing of accounts receivable
categorized by age (i.e., current, 30 to 60 days, 60 to 90 days, etc.).
Agreed-upon Procedures Correct Ans - An engagement in which a
practitioner is engaged to issue a report of findings based on specific
agreed-upon procedures.
, AICPA Code of Professional Conduct Correct Ans - Guidelines for
the behavior of members of the American Institute of Certified Public
Accountants (AICPA) in the conduct of their professional affairs.
Allowance for Sampling Risk Correct Ans - In sampling, a "cushion"
for protection against undetected deviations that is added to the sample
deviation rate to arrive at the upper deviation rate.
Analyst Correct Ans - An IT (Information Technology) department
employee who determines system requirements and designs a processing
system to meet those requirements.
Analytical Procedures Correct Ans - Evaluations of financial
information made by a study of plausible relationships among both
financial and nonfinancial data.
Applicable Financial Reporting Framework Correct Ans - The
financial reporting framework that is acceptable in view of the nature of
the entity and the objective of the financial statements, or that is required
by law or regulation.
Application Controls Correct Ans - Information processing controls
that apply to the processing of individual "applications" (e.g., controls
surrounding receivables, controls surrounding payroll, etc.).
Appropriate (Appropriateness of Audit Evidence) Correct Ans - The
quality of being both reliable (valid, factual, objective, and supportable)
and relevant (related to the financial statement assertion under
consideration).
Articles of Incorporation Correct Ans - A document filed with the
state to create a corporation.
Assertion Correct Ans - A declaration about whether a subject
matter is based on or in conformity with selected criteria.
Association with Financial Statements Correct Ans - A relationship
that arises when an accountant consents to the use of his or her name in
