LSU ACCT 3222 Wiley TEST 1 Questions with 100% Correct Answers 2024

LSU ACCT 3222 Wiley TEST 1 Questions with 100% Correct Answers 2024 unmodified report - answerthe name of a clean report for private companies unqualified report - answerthe name of a clean report for public companies clean report - answermeans that in the auditors' opinion if the company follows GAAP end of field work - answerthe date at the bottom of the audit report, stating 45 days after year end, when auditors stop gathering evidence, no hard deadline from the government management's responsibilities - answer-designing, implementing, and maintaining internal controls -creating financial statements -following GAAP -estimates for financial statements stems -gives auditors access to records, documentation, and personnel NASBA - answer-who you apply with to take the CPA exam; only handles the applications to take the CPA exam, not dealt with by each particular state -every state has their own state board; determines the education requirements for the state -licensing is controlled at the state level -make high level decisions, appointed by the governor AICPA - answer-professional organization, like exclusive club -makes and grades the CPA exam -issues the AU-C (auditing accounting estimates) -created SAS (Statements on Auditing Standards) state - answerissues your CPA license ASB - answer-audit standards for private and non-profit organizations -made up of members from the AICPA that are full time auditors and volunteering to be part of the this and members rotate -make detailed guidance for other standards FASB - answer-establishes financial accounting and reporting standards for public companies -deals with GAAP PCAOB - answer-created during the SOX legislation -oversees auditing -imposes punishments on those that do not adhere to audit regulations SEC - answer-appointed by the president -protects investors, maintains fair markets, facilitates capital formation -enforces and interprets securities laws -uniformity and quality -requirement for public companies and being audited in the same way -stock markets would not function -standards are guidelines to measure quality of audit work -government inspections happen from PCAOB - answerreasons for having standards public company - answerissuer private company - answernon-issuer audit services - answermost specific and narrow, services by an independent CPA that provide financial statement users with an opinion on whether the financials are presented fairly in material aspects in accordance with GAAP auditor - answerneed to licensed to lead an audit independent CPA qualified to perform the auditing services attestation services - answerperformed when an independent practitioner reports on subject matter prepared by someone else, focuses on financial information an audit is a type of attestation service; however, an attestation service is NOT an audit - answerhow is audit related to an attestation service? assurance service - answerindependent service improving the quality of information of financial and non financial information, includes any service provided by a professional that involves improving the quality of information prepared by someone else, includes the other two categories independent - answerservice is performed by someone not involved with the creation of the information and is objective in evaluating integrated audit - answerwhen the audit for the financial statements and the internal controls are performed at the same time materiality - answerability of information to influence decisions that users make on the basis of the financial information of a specific reporting entity, if omitting the information would influence others that read this information auditor's responsibilities - answer-give opinion that financials are presented fairly according to GAAP -NOT responsible for creating financial statements -done with auditing standards providing minimum requirements and guidance for the performance of an audit professional judgment - answerrelevant, training, knowledge, and experience auditors use to make informed decisions, get this as you build a career professional skepticism - answerinvolves the attitude of the auditor, need to maintain a questioning mind alert to conditions that could involve fraud or misstatements, investigate all information from the client while working independently of the company do not want to be sued - answerreasons to use specific wording like "no guarantee" and "reasonable assurance" to note that the entire firm stands behind the audit of the client - answerreason for putting the name of the firm at the bottom of the audit report audit standards (AS) - answerissued by the PCAOB make sure following GAAP aka following rules no matter what - answerpurpose of an audit need minimum of 20 per year year, but have a rolling schedule of 80 hours on a two year basis - answerCPE requirements appropriate competence - answerhaving proper certification of CPA, education/hours, CPE training, similar foundation, work experience -internal controls audit