Comprehensive
Guide to
Government and
Financial Auditing
Standards |
Accounting Study
Guide
,Terms in this set (169)
What is the primary purpose of an audit? To provide an opinion on whether the financial statements are fairly
presented in accordance with GAAP.
What does 'material' mean in the context of an audit? An omission or misstatement that would influence the decisions of a
reasonable and informed third party.
What is the difference between reasonable assurance Reasonable assurance means a high level of confidence that financial
and absolute assurance? statements are free from material misstatement, while absolute assurance is
unattainable.
What are performance audits? Audits that assess program effectiveness, internal controls, compliance, and
other objectives.
What is the role of the Auditor's responsibility in To issue a report stating an opinion on the compliance of the entity's financial
financial audits? statements with GAAP.
What are the three types of attestation engagements? Examination, Review, and Agreed-upon procedures engagements.
, What does an examination engagement provide? Reasonable assurance similar to that of a financial statement audit.
What is the purpose of a review engagement? To provide limited assurance without reporting on internal control or
compliance.
What is an agreed-upon procedures engagement? An engagement where specified parties agree on the procedures to be
followed, and the auditor reports findings without providing an opinion.
What types of subjects can be covered in attestation Historical or prospective performance, financial information, physical
engagements? characteristics, historical events, analyses, systems and processes, and
behavior.
What is the significance of the Government Auditing They provide guidelines for government auditors to ensure compliance and
Standards (GAS)? quality in audits.
Who established the GAO and what is its purpose? The GAO was established by the Budget and Accounting Act of 1921 to
perform audits for Congress.
What is the role of the AICPA in auditing standards? The AICPA promulgates Generally Accepted Auditing Standards (GAAS) for
auditors.
Guide to
Government and
Financial Auditing
Standards |
Accounting Study
Guide
,Terms in this set (169)
What is the primary purpose of an audit? To provide an opinion on whether the financial statements are fairly
presented in accordance with GAAP.
What does 'material' mean in the context of an audit? An omission or misstatement that would influence the decisions of a
reasonable and informed third party.
What is the difference between reasonable assurance Reasonable assurance means a high level of confidence that financial
and absolute assurance? statements are free from material misstatement, while absolute assurance is
unattainable.
What are performance audits? Audits that assess program effectiveness, internal controls, compliance, and
other objectives.
What is the role of the Auditor's responsibility in To issue a report stating an opinion on the compliance of the entity's financial
financial audits? statements with GAAP.
What are the three types of attestation engagements? Examination, Review, and Agreed-upon procedures engagements.
, What does an examination engagement provide? Reasonable assurance similar to that of a financial statement audit.
What is the purpose of a review engagement? To provide limited assurance without reporting on internal control or
compliance.
What is an agreed-upon procedures engagement? An engagement where specified parties agree on the procedures to be
followed, and the auditor reports findings without providing an opinion.
What types of subjects can be covered in attestation Historical or prospective performance, financial information, physical
engagements? characteristics, historical events, analyses, systems and processes, and
behavior.
What is the significance of the Government Auditing They provide guidelines for government auditors to ensure compliance and
Standards (GAS)? quality in audits.
Who established the GAO and what is its purpose? The GAO was established by the Budget and Accounting Act of 1921 to
perform audits for Congress.
What is the role of the AICPA in auditing standards? The AICPA promulgates Generally Accepted Auditing Standards (GAAS) for
auditors.
