Chapter 1 - The Auditing Profession & Chapter 2 - The CPA Profession Flashcards Preview

ACTG 4510 > Chapter 1 - The Auditing Profession & Chapter 2 - The CPA Profession > Flashcards

Flashcards in Chapter 1 - The Auditing Profession & Chapter 2 - The CPA Profession Deck (24):
1

GAO

Government Accountability Office Auditor

2

IRA

Internal Revenue Agents

3

Internal Auditors

Employed by all types of organizations to audit for management.

4

CPA

Certified Public Accountant

5

Auditing Services

Accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria.

6

Attestation Services

A type of Assurance Service in which Audits and Reviews happen.

7

Assurance Services

Independent professional service that improves the quality of information for decision makers. (Consumer Reports, BBB, etc.)

8

GAAS

Generally Accepted Auditing Standards.
Issued by ASB

9

GAAS - General Standards

(1) Audit to be performed by a person with adequate training as an auditor.
(2) Independence.
(3) Due professional care is to be exercised.

10

GAAS - Standards of Field Work

(1) Audit is to be adequately planned and assistants are to be properly supervised.
(2) Sufficient understanding of Internal Controls
(3) Sufficient appropriate evidential matter is to be obtained to afford a reasonable opinion.

11

PCAOB

Public Company Accounting Oversight Board.
Overseen by the SEC.
Conducts inspections of registered accounting firms.

12

SEC

Securities and Exchange Commission.

13

Securities Act of 1933

Requires new publicly traded companies to file a Form S-1

14

Securities Act of 1934

Requires publicly traded companies to file a Form 10-K

15

Form S-1

New company

16

Form 8-K

Significant events that are of interest to public investors.

17

Form 10-Q

Quarterly report

18

Form 10-K

Annual report

19

AICPA

American Institute of Certified Public Accountants. Restricted to CPAs, but not all members are practicing as independent auditors.
Sets up ASB.

20

SAS

Statements on Auditing Standards.

21

ASB

Auditing Standards Board. Issue Pronouncements on auditing matters in the U.S. for all entities other than publicly traded companies. Pronouncements are called SASs.

22

GAAS - Standards of Reporting

(1) The report shall state whether the financial statements are presented in accordance with GAAP.
(2) The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
(3) Informative disclosures in the FINS are to be regarded as reasonably adequate unless otherwise stated in the report.
(4) The report shall contain either and opinion or an assertion to the effect that an opinion cannot be expressed.

23

Peer Review

Practice-monitoring, is the review of CPAs, of other CPA firm's compliance with its quality control system.

24

CPA Services

(1) Auditing
(2) Accounting & Bookkeeping
(3) Tax
(4) Management Consulting