Flashcards in Chapter 2 Deck (17):
What type of activities do internal auditors conduct?
Financial, internal control, compliance, operational, and forensic audits withing their organization
What is the name of an audit that determines the extent to which rules, policies, laws, covenants, or government regulations are followed.
What is an integrates audit
audit of internal controls and financial statements
What is the name of an audit that evaluates whether resources are used effectively and efficiently
What are two other names for operation audits
Performance or Management audit
What is the purpose of a Forensic Audit
To detect or deter fraudulent activity
What is the typical structure of a large accounting firm?
LLC or LLP
What percentage of publicly traded firm do the big 4 audit?
What is the order of authority for an audit team?
Partner, Manager, Senior, Staff members
How often must firms rotate audit partners when auditing public firms?
Due professional care requires that the auditor exercise what?
The people, processes, and activities in place to help ensure proper stewardship over an entity's assets is referred to as what?
What are the 5 business processes?
Financing, Purchasing, HR, Inventory Management, Revenue
What do financial statements measure?
Performance of business processes
Name the 3 general topics of auditing standards for issued by the PCAOB
Name the 10 auditing standards issued by the PCAOB
Due professional Care
Planning and Supervision
Internal controls testing
Evidence is appropriate