Accounting VS Auditing Flashcards

1
Q

Who are potential users of F/S?

A

Investors

Major business “partners”

  • Employees
  • Customers
  • Suppliers

Competitors

Regulators (SEC, FTC)

Management of the business

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2
Q

What do users do with the F/S they receive?

A

Evaluate management’s performance with information that management itself has been prepared.

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3
Q

What are the two distinct aspects of an audit engagement?

A

Fieldwork stage- Systematically gathers evidence to evaluate assertions against criteria (GAAP)

Reporting Stage- Communicates the results

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4
Q

What are the destinct standard setting bodies in the United States?

A

FASB- For businesses
GASB- For State & Local Government Entities
FASAB- For Federal Governmental Entities

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5
Q

What are the standard setting bodies for auditing in the United States?

A

ASB- for “non-Issuers” (Private companies, GAAS)

PCABOB- “for issuers” (for public companies)

GAO- For governmental entities

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6
Q

What is the audit standard setting international bodies?

A

Issues International Standards on Auditing (ISAS)

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