Chapter 2 SB HW Flashcards
An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations is the definition of ______ auditing.
internal
True or false: External auditors conduct financial statement audits, but only internal auditors conduct compliance, operational, and fraud audits.
False
Businesses obtain capital through ______.
borrowing and soliciting investments
Which act regulates ongoing reporting by companies whose companies securities are listed and traded on a stock exchange or that possess assets greater than $10 million and its equity securities are held by 500 or more persons?
Securities Exchange Act of 1934
What are auditors specially trained in detecting, investigating, and deterring white-collar crime are called?
Fraud auditors
An audit of internal control is ______ for private entities.
available but not required
Assertions companies make about sustainability have led to a promising new area of ______
services for auditors.
attest
Auditing and attestation are specialized forms of the general category of what kind of services?
Assurance services
Which act prohibits external auditors from providing many forms of nonaudit services and consulting work to public companies for which the auditor also provides a financial statement audit?
The Sarbanes-Oxley Act of 2002
Who is responsible for ensuring the audit is properly planned and conducted in accordance with applicable auditing standards?
Partner
Who is responsible for preparing adequate and appropriate documentation of completed work?
Associate/staff
Who is responsible for reviewing the work papers, FS, and audit report?
Manager
Who is responsible for assigning tasks to associates and directing the day-to-day performance of the audit?
Senior/in-charge
The international financial crisis of 2007–2009 led to the passage of what act?
Dodd-frank act
What did the Dodd-frank act do?
Amended the authority of PCAOB in regard to foreign audit firms that practice in the US.
