ACCT402 -
Introduction to
Auditing fully
solved &
updated
Audit - answer an independent report on whether the financial
statements comply with GAAP
Assurance Service - answer independent professional engagement
that improve the quality of information for decision makers
Attest - answer written communication expressing a conclusion
about an assertion that is the responsibility of a third party (part of
assurance services)
,Assertion - answer financial statements are fairly stated and comply
with GAAP standards
Types of Engagements (Attest) - answer - Examination (audit)
- Review
- Agreed-upon procedure
Conclusions (list) - answer - Positive assurance
- Negative assurance
- Summary of findings
What is meant by "negative assurance"? - answer audit findings
state that nothing came to attention to show they are not complying
(somewhat of a double negative)
Assurance (list of examples given in class) - answer - Attest
functions
- Appraisals
- AICPA elder care
Attest functions (list of examples given in class) - answer - Audit
- Review
- Agreed-upon procedures
Services that aren't assurance - answer - Tax
- Consulting
- Compilations
Who can perform an audit? - answer A CPA who is both competent
and independent
,How do we measure competency? - answer A CPA must continue
professional education (CPE)
What are the CPE requirements in California? - answer 80 hours
every 2 years
What are the CPE requirements in states other than California? -
answer 40 hours annually
How do you become a CPA? - answer - take the national AICPA exam
- apply for the license in your state
What are the CPA requirements? - answer - 150 hours of education
- Bachelor's degree
- 1 year of experience to be signed off by a CPA
What is a CPA requirement specific to the state of California? -
answer an ethics course
What are the four types of audits we went over in class? - answer -
Financial statement audit
- Compliance
- Operational
- Integrated
What is the conclusion of a financial statement audit? - answer
Whether or not the financial statements are fairly stated
, What is the conclusion of a compliance audit? - answer Whether or
not the firm complied with regulations
What is the conclusion of an operational audit? - answer The
effectiveness and efficiency of the organization
What is the conclusion of an integrated audit? - answer Whether or
not the financial statements are fairly stated AND there are
adequate internal controls in place
Which auditor does a financial statement audit? - answer
external/independent
Which auditor does a compliance audit? - answer external,
governmental
Which auditor does an operational audit? - answer internal
Which auditor does an integrated audit? - answer
external/independent
To whom do auditors report? - answer a company's audit committee
Internal board members - answer members of the board of directors
who are part of the organization's management team
External board members - answer members of the board of directors
who are not part of the organization's management team
The audit committee is comprised of... - answer external board
members
Introduction to
Auditing fully
solved &
updated
Audit - answer an independent report on whether the financial
statements comply with GAAP
Assurance Service - answer independent professional engagement
that improve the quality of information for decision makers
Attest - answer written communication expressing a conclusion
about an assertion that is the responsibility of a third party (part of
assurance services)
,Assertion - answer financial statements are fairly stated and comply
with GAAP standards
Types of Engagements (Attest) - answer - Examination (audit)
- Review
- Agreed-upon procedure
Conclusions (list) - answer - Positive assurance
- Negative assurance
- Summary of findings
What is meant by "negative assurance"? - answer audit findings
state that nothing came to attention to show they are not complying
(somewhat of a double negative)
Assurance (list of examples given in class) - answer - Attest
functions
- Appraisals
- AICPA elder care
Attest functions (list of examples given in class) - answer - Audit
- Review
- Agreed-upon procedures
Services that aren't assurance - answer - Tax
- Consulting
- Compilations
Who can perform an audit? - answer A CPA who is both competent
and independent
,How do we measure competency? - answer A CPA must continue
professional education (CPE)
What are the CPE requirements in California? - answer 80 hours
every 2 years
What are the CPE requirements in states other than California? -
answer 40 hours annually
How do you become a CPA? - answer - take the national AICPA exam
- apply for the license in your state
What are the CPA requirements? - answer - 150 hours of education
- Bachelor's degree
- 1 year of experience to be signed off by a CPA
What is a CPA requirement specific to the state of California? -
answer an ethics course
What are the four types of audits we went over in class? - answer -
Financial statement audit
- Compliance
- Operational
- Integrated
What is the conclusion of a financial statement audit? - answer
Whether or not the financial statements are fairly stated
, What is the conclusion of a compliance audit? - answer Whether or
not the firm complied with regulations
What is the conclusion of an operational audit? - answer The
effectiveness and efficiency of the organization
What is the conclusion of an integrated audit? - answer Whether or
not the financial statements are fairly stated AND there are
adequate internal controls in place
Which auditor does a financial statement audit? - answer
external/independent
Which auditor does a compliance audit? - answer external,
governmental
Which auditor does an operational audit? - answer internal
Which auditor does an integrated audit? - answer
external/independent
To whom do auditors report? - answer a company's audit committee
Internal board members - answer members of the board of directors
who are part of the organization's management team
External board members - answer members of the board of directors
who are not part of the organization's management team
The audit committee is comprised of... - answer external board
members
