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AUD CPA Glossary Questions with Detailed
Verified Answers
Account Balances
Ans: One of three categories of financial statement assertions, relating primarily to
assets, liabilities, and equity interests.
Accounting Estimate
Ans: 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
Ans: A request for independent verification of payables.
Accounts Receivable Confirmation
Ans: A request for independent verification of receivables. Note that confirming
accounts receivable is a required, generally accepted auditing producre.
Accuracy
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Ans: 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
Ans: 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
Ans: A ratio that measures how effectively an enterprise is using its assets.
Adverse Opinion
Ans: An auditor's report stating that the financial statements "do not present fairly..."
Aging Schedule
Ans: A listing of accounts receivable categorized by age (i.e., current, 30 to 60 days, 60
to 90 days, etc.).
Agreed-upon Procedures
Ans: 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
© Get it right 2025 Getaway - Stuvia US All rights reserved
AUD CPA Glossary Questions with Detailed
Verified Answers
Account Balances
Ans: One of three categories of financial statement assertions, relating primarily to
assets, liabilities, and equity interests.
Accounting Estimate
Ans: 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
Ans: A request for independent verification of payables.
Accounts Receivable Confirmation
Ans: A request for independent verification of receivables. Note that confirming
accounts receivable is a required, generally accepted auditing producre.
Accuracy
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: 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
Ans: 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
Ans: A ratio that measures how effectively an enterprise is using its assets.
Adverse Opinion
Ans: An auditor's report stating that the financial statements "do not present fairly..."
Aging Schedule
Ans: A listing of accounts receivable categorized by age (i.e., current, 30 to 60 days, 60
to 90 days, etc.).
Agreed-upon Procedures
Ans: 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
© Get it right 2025 Getaway - Stuvia US All rights reserved
