Chap 1 & 2 Flashcards
The general standards of Generally Accepted Accounting Standards
- Training & Proficiency, 2. Independence, 3. Due professional care
The training and proficiency of an audit requires what?
Preformed by a person or persons having adequate technical and proficiency as an auditor
What is the second general standard of GAAS?
Independence - in all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors.
Performance of the audit and preparation of the report are to be done with due professional care. Which standard of GAAS is this?
The third general standard
During fieldwork an auditor should always have a planned but he doesn’t need supervised.
False, an audit should be planned and advised, if any, are to be properly supervised.
Internal Control is included in which Standard?
The second standard of fieldwork.
What knowledge should the auditor have to plan the audit and to determine the nature, timing and extent of tests to be performed?
An understanding of internal control
What is the last GAAS standard of fieldwork?
Sufficient competent evidential matter
During an audit inspection, observation, inquiries and confirmations are obtained to afford an opinion of the company.
These are found through sufficient competent evidential matter to determine a reasonable basis for an opinion regarding the financial statements.
Standards of Reporting include what?
Conformity with GAAP, lack of consistency, Informative disclosures that are reasonably adequate and either an expression of opinion or an adverse opinion.
What should the report state is represented within the financial statements?
That they conform with GAAP
Which standard identifies circumstances in which principles aren’t the same one year to the next?
The second standard of reporting
What are supposed to be regarded as reasonably adequate in the financial statement?
Informative disclosures in the financial statements. Part of the third standard in Reporting
An expression of opinion is part of which standard?
The fourth standard in reporting
What does the fourth standard of reporting include?
An expression of opinion of the financial statements as a whole or an assertion that an expression cannot be expressed.
What are the different roles of the PCAOB and the AICPA
The PCAOB audits publicly traded companies and the AICPA audits nonpublic companies
What is the difference between GAAP and GAAS
GAAP is for preparing financial statements and GAAS is for auditing financial statements
What provides assurance on whether the financial statements follow the framework
The financial reporting framework
Corporate governance refers to
Rules, processes and laws by which businesses are operated, regulated and controlled.
