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Flashcards in Chapter 2 Deck (17):
1

What type of activities do internal auditors conduct?

Financial, internal control, compliance, operational, and forensic audits withing their organization

2

What is the name of an audit that determines the extent to which rules, policies, laws, covenants, or government regulations are followed.

Compliance Audit

3

What is an integrates audit

audit of internal controls and financial statements

4

What is the name of an audit that evaluates whether resources are used effectively and efficiently

Operational Audit

5

What are two other names for operation audits

Performance or Management audit

6

What is the purpose of a Forensic Audit

To detect or deter fraudulent activity

7

What is the typical structure of a large accounting firm?

LLC or LLP

8

What percentage of publicly traded firm do the big 4 audit?

80%

9

What is the order of authority for an audit team?

Partner, Manager, Senior, Staff members

10

How often must firms rotate audit partners when auditing public firms?

5 years

11

Due professional care requires that the auditor exercise what?

Professional Skepticism

12

The people, processes, and activities in place to help ensure proper stewardship over an entity's assets is referred to as what?

Corporate Governance

13

What are the 5 business processes?

Financing, Purchasing, HR, Inventory Management, Revenue

14

What do financial statements measure?

Performance of business processes

15

Name the 3 general topics of auditing standards for issued by the PCAOB

General
Field Work
Reporting

16

Name the 10 auditing standards issued by the PCAOB

Training
Independence
Due professional Care
Planning and Supervision
Internal controls testing
Evidence is appropriate
GAAP?
Consistency
Disclosures
Opinion

17

Name the 4 broad categories for GAAS

Purpose/Premise
Responsibilities
Performance
Reporting