Flashcards in Chapter 1 - The Auditing Profession & Chapter 2 - The CPA Profession Deck (24):
Government Accountability Office Auditor
Internal Revenue Agents
Employed by all types of organizations to audit for management.
Certified Public Accountant
Accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria.
A type of Assurance Service in which Audits and Reviews happen.
Independent professional service that improves the quality of information for decision makers. (Consumer Reports, BBB, etc.)
Generally Accepted Auditing Standards.
Issued by ASB
GAAS - General Standards
(1) Audit to be performed by a person with adequate training as an auditor.
(3) Due professional care is to be exercised.
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.
Public Company Accounting Oversight Board.
Overseen by the SEC.
Conducts inspections of registered accounting firms.
Securities and Exchange Commission.
Securities Act of 1933
Requires new publicly traded companies to file a Form S-1
Securities Act of 1934
Requires publicly traded companies to file a Form 10-K
Significant events that are of interest to public investors.
American Institute of Certified Public Accountants. Restricted to CPAs, but not all members are practicing as independent auditors.
Sets up ASB.
Statements on Auditing Standards.
Auditing Standards Board. Issue Pronouncements on auditing matters in the U.S. for all entities other than publicly traded companies. Pronouncements are called SASs.
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.
Practice-monitoring, is the review of CPAs, of other CPA firm's compliance with its quality control system.