Top Mark Questions and Correct Verified Answers
AUD CPA Glossary Questions and
Correct Verified Answers
Account Balances
✓ One of three categories of financial statement assertions, relating primarily to
assets, liabilities, and equity interests.
Accounting Estimate
✓ 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
✓ A request for independent verification of payables.
Accounts Receivable Confirmation
✓ A request for independent verification of receivables. Note that confirming
accounts receivable is a required, generally accepted auditing producre.
Accuracy
Top Mark !!!
, Top Mark Questions and Correct Verified Answers
✓ 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
✓ 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
✓ A ratio that measures how effectively an enterprise is using its assets.
Adverse Opinion
✓ An auditor's report stating that the financial statements "do not present
fairly..."
Aging Schedule
✓ A listing of accounts receivable categorized by age (i.e., current, 30 to 60 days,
60 to 90 days, etc.).
Agreed-upon Procedures
Top Mark !!!
, Top Mark Questions and Correct Verified Answers
✓ 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
✓ 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
✓ 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
✓ An IT (Information Technology) department employee who determines system
requirements and designs a processing system to meet those requirements.
Analytical Procedures
✓ Evaluations of financial information made by a study of plausible relationships
among both financial and nonfinancial data.
Applicable Financial Reporting Framework
Top Mark !!!
AUD CPA Glossary Questions and
Correct Verified Answers
Account Balances
✓ One of three categories of financial statement assertions, relating primarily to
assets, liabilities, and equity interests.
Accounting Estimate
✓ 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
✓ A request for independent verification of payables.
Accounts Receivable Confirmation
✓ A request for independent verification of receivables. Note that confirming
accounts receivable is a required, generally accepted auditing producre.
Accuracy
Top Mark !!!
, Top Mark Questions and Correct Verified Answers
✓ 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
✓ 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
✓ A ratio that measures how effectively an enterprise is using its assets.
Adverse Opinion
✓ An auditor's report stating that the financial statements "do not present
fairly..."
Aging Schedule
✓ A listing of accounts receivable categorized by age (i.e., current, 30 to 60 days,
60 to 90 days, etc.).
Agreed-upon Procedures
Top Mark !!!
, Top Mark Questions and Correct Verified Answers
✓ 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
✓ 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
✓ 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
✓ An IT (Information Technology) department employee who determines system
requirements and designs a processing system to meet those requirements.
Analytical Procedures
✓ Evaluations of financial information made by a study of plausible relationships
among both financial and nonfinancial data.
Applicable Financial Reporting Framework
Top Mark !!!
