WGU D215 Auditing – Questions With Thorough
Solutions
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Terms in this set (118)
What is the difference between Audit' lends credibility to a company's FS such
assurance, attestation and auditing? balance sheet and income statement
Attestation; any assertions by management not just
financial statements proforma 10k or 401k
Assurance; any information that you are rendering an
opinion on such state lottery
What is the role of FS auditor To provide an opinion about FS
provide financial statement users with Internal controls over financial reporting ICFR
an opinion by the auditor on the
design and effectiveness
What are the different types of Compliance
assurance audits Operational
Internal
Conducted by employees of the Internal audit
organization to provide assurance
about various aspects of the org's
activities
Gathering evidence to determine Compliance Audit
whether the person or entity under
review has followed the rules and
procedures
Economy, efficiency, and effectiveness Operational Audit
of an org's activities
,What are 4 reasons for a demand in Remoteness
auditing Complexity
Competing incentives
Reliability
What are the 4 types of Audit opinions unqualified, qualified, adverse, disclaimer
The FS are presented fairly, also unqualified opinion
called clean opinion with material
misstatements
FS are presented fairly except for a Qualified Opinion
single issue such as departure from
GAAP in the way they did their
inventory or scope limitation
FS are not presented fairly which is Adverse Opinion
bad its not reliable
We can not express an opinion Disclaimer opinion
because it lacks independence or an
extensive scope limitation
A subset of the board of directors that Audit Committee
acts as a direct contact between the
stockholders and the independent
accounting firm.
The quality of audits that serves as a Auditing standards
guide to conducting an audit
Can the CEO be a member of the No, because they are not independent of the
audit committee company it needs to independent directors with at
least one financial expert and hires an external
auditor
Auditing standards outside the US IAASB (International Auditing and Assurance
Standards Board)
, Federal government agency whose SEC
mission is to protect investors and
maintain fair markets
Nonprofit corporation established by PCAOB (Public Company Accounting Oversight
Congress to oversee the audits of Board)
Public Companies in order to protect Auditing standards
the interests of investors and further
the public interest in the preparation
of informative, accurate and
independent audit reports
Issuers
Private professional membership of AICPA (American Institute of Certified Public
CPAs representing the accounting Accountants)
profession, acting as advocate for Statement on auditing standards
them. Private companies
Nonissues
a high, but not absolute, that Reasonable assurance
determines whether financial
statements as a whole are free from
material misstatement
whether an item is large enough to Materiality
likely influence the decision of an
investor or creditor
Reason to believe that the company Going Concern Opinion
could close its operations soon,
everything could be fine in the audit
opinion but they need to address this
What makes an auditor a professional Their level of expertise and their responsibility and
concern for the public interest (CPI)
Solutions
Save
Terms in this set (118)
What is the difference between Audit' lends credibility to a company's FS such
assurance, attestation and auditing? balance sheet and income statement
Attestation; any assertions by management not just
financial statements proforma 10k or 401k
Assurance; any information that you are rendering an
opinion on such state lottery
What is the role of FS auditor To provide an opinion about FS
provide financial statement users with Internal controls over financial reporting ICFR
an opinion by the auditor on the
design and effectiveness
What are the different types of Compliance
assurance audits Operational
Internal
Conducted by employees of the Internal audit
organization to provide assurance
about various aspects of the org's
activities
Gathering evidence to determine Compliance Audit
whether the person or entity under
review has followed the rules and
procedures
Economy, efficiency, and effectiveness Operational Audit
of an org's activities
,What are 4 reasons for a demand in Remoteness
auditing Complexity
Competing incentives
Reliability
What are the 4 types of Audit opinions unqualified, qualified, adverse, disclaimer
The FS are presented fairly, also unqualified opinion
called clean opinion with material
misstatements
FS are presented fairly except for a Qualified Opinion
single issue such as departure from
GAAP in the way they did their
inventory or scope limitation
FS are not presented fairly which is Adverse Opinion
bad its not reliable
We can not express an opinion Disclaimer opinion
because it lacks independence or an
extensive scope limitation
A subset of the board of directors that Audit Committee
acts as a direct contact between the
stockholders and the independent
accounting firm.
The quality of audits that serves as a Auditing standards
guide to conducting an audit
Can the CEO be a member of the No, because they are not independent of the
audit committee company it needs to independent directors with at
least one financial expert and hires an external
auditor
Auditing standards outside the US IAASB (International Auditing and Assurance
Standards Board)
, Federal government agency whose SEC
mission is to protect investors and
maintain fair markets
Nonprofit corporation established by PCAOB (Public Company Accounting Oversight
Congress to oversee the audits of Board)
Public Companies in order to protect Auditing standards
the interests of investors and further
the public interest in the preparation
of informative, accurate and
independent audit reports
Issuers
Private professional membership of AICPA (American Institute of Certified Public
CPAs representing the accounting Accountants)
profession, acting as advocate for Statement on auditing standards
them. Private companies
Nonissues
a high, but not absolute, that Reasonable assurance
determines whether financial
statements as a whole are free from
material misstatement
whether an item is large enough to Materiality
likely influence the decision of an
investor or creditor
Reason to believe that the company Going Concern Opinion
could close its operations soon,
everything could be fine in the audit
opinion but they need to address this
What makes an auditor a professional Their level of expertise and their responsibility and
concern for the public interest (CPI)
