Accounting VS Auditing Flashcards
Who are potential users of F/S?
Investors
Major business “partners”
- Employees
- Customers
- Suppliers
Competitors
Regulators (SEC, FTC)
Management of the business
What do users do with the F/S they receive?
Evaluate management’s performance with information that management itself has been prepared.
What are the two distinct aspects of an audit engagement?
Fieldwork stage- Systematically gathers evidence to evaluate assertions against criteria (GAAP)
Reporting Stage- Communicates the results
What are the destinct standard setting bodies in the United States?
FASB- For businesses
GASB- For State & Local Government Entities
FASAB- For Federal Governmental Entities
What are the standard setting bodies for auditing in the United States?
ASB- for “non-Issuers” (Private companies, GAAS)
PCABOB- “for issuers” (for public companies)
GAO- For governmental entities
What is the audit standard setting international bodies?
Issues International Standards on Auditing (ISAS)