AUE3702 Comprehensive Auditing
Assessment
◉ an independent audit adds value to the communication of financial
information because the audit. Answer: lends credibility to the financial
statements
◉ which of the following best describes the reason why an independent
auditor is often retained to report on financial statements? Answer:
different interest may exist between the entity preparing the statements
and the persons using the statements, and thus outside assurance is
needed to enhance the credibility of the statements
◉ attestation engagement. Answer: an engagement that requires
independence as set forth in the AICPA statements on auditing
standards, statements on standards for accounting and review services,
and statements on standards for attestation engagements. attest
engagements include financial statement audits, reviews, and
examinations of prospective financial information
◉ close relative. Answer: a parent, sibling, or nondependent child
◉ ethics. Answer: a system or code of conduct based on moral duties
and obligations that indicates how an individual should behave
, ◉ financial interest. Answer: an ownership interest in an equity or a debt
security issue by an entity, including rights and obligations to acquire
such an interest and derivates directly related to such interest.
◉ direct financial interest. Answer: financial interest that is owned
directly by an individual or entity, or is under the control of an
individual or entity
◉ indirect financial interest. Answer: is a financial interest that is
beneficially owned through the investment vehicle, estate, trust, or other
intermediary when the beneficiary does not control the intermediary or
have authority to supervise or participate in the intermediary's
investment decisions.
◉ immediate family. Answer: a spouse, spousal equivalent, or
dependent (whether or not related)
◉ justice-based approach. Answer: an approach to ethics concerned with
individual freedom, equity, fairness, and impartiality
◉ professionalism. Answer: the conduct, aims, or qualities that
characterize or mark a profession or professional person
◉ public practice. Answer: consists of the performance of professional
services for a client by a member or member's firm
Assessment
◉ an independent audit adds value to the communication of financial
information because the audit. Answer: lends credibility to the financial
statements
◉ which of the following best describes the reason why an independent
auditor is often retained to report on financial statements? Answer:
different interest may exist between the entity preparing the statements
and the persons using the statements, and thus outside assurance is
needed to enhance the credibility of the statements
◉ attestation engagement. Answer: an engagement that requires
independence as set forth in the AICPA statements on auditing
standards, statements on standards for accounting and review services,
and statements on standards for attestation engagements. attest
engagements include financial statement audits, reviews, and
examinations of prospective financial information
◉ close relative. Answer: a parent, sibling, or nondependent child
◉ ethics. Answer: a system or code of conduct based on moral duties
and obligations that indicates how an individual should behave
, ◉ financial interest. Answer: an ownership interest in an equity or a debt
security issue by an entity, including rights and obligations to acquire
such an interest and derivates directly related to such interest.
◉ direct financial interest. Answer: financial interest that is owned
directly by an individual or entity, or is under the control of an
individual or entity
◉ indirect financial interest. Answer: is a financial interest that is
beneficially owned through the investment vehicle, estate, trust, or other
intermediary when the beneficiary does not control the intermediary or
have authority to supervise or participate in the intermediary's
investment decisions.
◉ immediate family. Answer: a spouse, spousal equivalent, or
dependent (whether or not related)
◉ justice-based approach. Answer: an approach to ethics concerned with
individual freedom, equity, fairness, and impartiality
◉ professionalism. Answer: the conduct, aims, or qualities that
characterize or mark a profession or professional person
◉ public practice. Answer: consists of the performance of professional
services for a client by a member or member's firm
