9/23 Class

Question 1

comparative balance sheet

Answer 1

2012 - 2013

Question 2

grading on SUA

Answer 2

grading highly on internal controls

Question 3

deliverables

Answer 3

look online for grading rubric
comparative financial statements
income statement
closing entries
9-47 trial balance this is the check figures for if you are off balance

Question 4

Chapter 5

Answer 4

Sarbanes Oxley Act

Question 5

Corporate Governance

Answer 5

the stewardship of the business, system of checks and balances to verify the management members are creating value for shareholders

Question 6

1933 Securities act

Answer 6

details the procedures for having a public offering

Question 7

19xx Securities act

Answer 7

the rules public companies have to abide by

Question 8

Sec 201

Answer 8

things outside of the scope of auditors, things that we can't do, 
can't value assets
can't do pensions
internal audits
management, investment, legal advisory 
we can do tax services

Question 9

Sec 101

Answer 9

PCAOB established, more than a 100 they must be audited every year, less than 100 is every three years

Question 10

Sec 206

Answer 10

conflicts of interest, you can’t audit a company for a year that wants to hire you

Question 11

Sec 302 & 906

Answer 11

….

Question 12

Sec xx

Answer 12

clawback clause, when you get bonuses that are calculated from sales that are restated you must pay that back

Question 13

Sec 404

Answer 13

internal controls

Question 14

Sec xx title 8

Answer 14

felony to knowingly destroy working papers

Question 15

Control Activities COSO

Answer 15

policies include processes and controls
example controls:
top level reviews
Information processing controls
    accuracy 
    completeness
    authorization
    system controls (General/Application)
Physical Controls
Performance Indicators
Segregation of Duties

Question 16

processes

Answer 16

procedures that originate, transfer or change accounting data

Question 17

controls

Answer 17

procedures designed to prevent or detect errors resulting from the processing of accounting information

Question 18

documentation techniques

Answer 18

documentation of processes 
   practical purposes
   404 compliance
common documentation techniques
   narratives
   questionnaires
   policy and procedure
   entity relationship diagram
   data flow diagrams
   flowcharts

Question 19

data flow diagrams

Answer 19

use symbols to represent the processes, data sources, data flows, and entities in a system
logical systems
square symbol is where the process starts

Question 20

project

Answer 20

data flow diagram

Question 21

document flowcharts

Answer 21

illustrate the relationship among processes and the documents that flow between them
contain more details than data flow diagrams
clearly depict the separation of functions in a system

Question 22

project notes

Answer 22

if it doesn’t tell you that you use a computer then you don’t use one, it is a manual process
when the project says you use a terminal you use a terminal symbol
things in project: computer process, direct access, and terminal process
AE bridal case

Question 23

oval

Answer 23

start or end

Question 24

incomplete rectangle

Answer 24

source document or report

Question 25

trapezoid

Answer 25

manual operations

Question 26

calculated batch total

Answer 26

forget about it

Question 27

page connectors

Answer 27

use the circle for on page connector

use the square on top of a triangle it is an off page connector

Question 28

system flowcharts

Answer 28

used to represent the relationship between the key elements – input sources, programs, and output products of computer systems
depict the type of media being used
in practice not much difference between document and system flowcharts