WGU D215 Audit – Questions & Appropriate Answers

WGU D215 Audit – Questions & Appropriate
Answers

Save




Practice questions for this set


Learn 1 /7 Study using Learn




the difference between the actual work and assurance required by GAAS and
the expectation of that work by the general public



Choose an answer



1 Audit 2 3 types of audit tests



3 Expectation Gap 4 Going Concern Opinion



Don't know?




Terms in this set (50)



Audit Highest level of assurance that can be given to
financial statements


Why auditing is important - Required for public companies to do by SEC
- Investors and creditors need reliable financial
information

, Auditing, Attestation & Assurance Auditing
- Credibility for financial statements


Attestation
- Credibility for management assertions
(Projections)


Assurance
- Credibility for any informatio


4 Types of Audit Opinions Unqualified
- Financial statements are fairly reported


Qualified
- Financial statements are fair except one issue


Adverse
- Financial statements are not reliable


Disclaimer
- No opinion expressed due to inability to give an
effective audit


Going Concern Opinion Auditor doesn't think company will continue to
operate in the future


Internal vs External Auditor Internal
- works for company
- consultant
- sure company is following laws and regulations
- verifies cost effectiveness
- make sure statements are reliable


External
- Does not work for company
- Provides an opinion
- Reports on effectiveness of company's internal
controls