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Audit > Chapter 1 LO1 > Flashcards

Chapter 1 LO1 Flashcards

describe auditing

1
Q

an auditor must have an _____ mental attidute?

A

independent

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2
Q

auditors must determine the _____ and ____ of evidence necessary

A

type amount

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3
Q

_____ is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

A

Auditing

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4
Q

To do an audit , information must be in what kind of form

A

a verifiable form

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5
Q

Auditing is the accumulation and ____ of evidence about information to determine and report on the degree of correspondence between the information and established criteria

A

evaluation

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6
Q

T/F the criteria for evaluating info doesn’t vary depending on the info being audited

A

F

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7
Q

Evidence is any ____ used by the auditor to determine whether the info being audited is stated in accordance with established criteria

A

info

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8
Q

Auditing is the accumulation and evaluation of evidence about information to ____ and report on the degree of correspondence between the information and established criteria

A

determine

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9
Q

to satisfy purpose of the audit, auditors must obtain a sufficient ____ and _____ of evidence

A

quality quantitiy

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10
Q

what are some examples of how an auditor performs audits of quantifiable info. what is this quantifiable info? (2)

A
  1. financial statement 2. individual federal income tax return
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11
Q

what are some examples of subjective info that an auditor might audit (2)

A
  1. effectiveness of computer systems 2. efficiency of manufacturing operation
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12
Q

to do an audit there must be information in a verifiable form and some standards or criteria by which the auditor can do what?

A

evaluate the info

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13
Q

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the _____ and established criteria

A

information

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14
Q

T/F reports dont vary in form

A

F can be highy technical like finanical statement audits or can be simple oral report like an operational audit of small departments effectiveness

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15
Q

Evidence is any info used by the auditor to determine whether the info being audited is stated in accordance with established ____

A

criteria

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16
Q

to do an audit information must be in a verifiable form and there should be some what ? by which the auditor can evaluate the information

A

standards (criteria)

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17
Q

Evidence is any info used by the auditor to ____whether the info being audited is stated in accordance with established criteria

A

determine

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18
Q

what would be the criteria for auditing internal control over finanical reporting

A

the framework for establishing internal control like like Internal Control- Integrated Framework issued by COSO

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19
Q

_____ is any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria

A

Evidence

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20
Q

Auditing is the accumulation and evaluation of evidence about information to determine and report on the ____ of correspondence between the information and established criteria

A

degree

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21
Q

what is the final statge in the auditing process?

A

the audit report

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22
Q

T/F for subjective info, it is more difficult to establish criteria

A

T

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23
Q

T/F auditors can also audit more subjective info

A

T

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24
Q

Evidence is any info used by the auditor to determine whether the ____ being audited is stated in accordance with established criteria

25
Q

audit reports differ in nature, but all must inform readers of what?

A

the degree of correspondence between the info audited and established criteria (tax return and Internal revenue code)

26
Q

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established _____

27
Q

the auditor must be qualified to understand the criteria used and competent to know the the types and amount of evidence to accumulate in order to do what?

A

reach the proper conclusion after examining the evidence

28
Q

what would the criteria be for audit of tax returns by IRS?

A

Internal Revenue code

29
Q

Evidence is any info used by the auditor to determine whether the info being audited is stated in accordance with ____ criteria

A

established

30
Q

What is COSO?

A

Committee of sponsoring organizations of the treadway commision

31
Q

T/f even though auditors are paid fees by the company, they are normally sufficiently independent to conduct audits that can be relied on by user

32
Q

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and _____ criteria

A

established

33
Q

Evidence is any info used by the auditor to determine whether the info being audited is stated in ____ with established criteria

A

accordance

34
Q

what does the audit report do?

A

communicates the auditors findings to users

35
Q

auditors reporting on company financial statments are often called ______ auditors

A

independent

36
Q

what are 3 examples of what auditors provide assurance on?

A
  1. financial statement 2. effectiveness of internal control over financial reporting 3. corporate sustainability reports
37
Q

Auditing is the accumulation and evaluation of evidence about information to determine and ____ on the degree of correspondence between the information and established criteria

38
Q

an auditor must have an independent what?

A

mental attitude

39
Q

Auditing is the ____ and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

A

accumulation

40
Q

Evidence is any info used by the auditor to determine whether the info being ____ is stated in accordance with established criteria

41
Q

Auditing should be done by a _____ and _____ person

A

competent independent

42
Q

auditors strive to maintain a high level of ____ to keep the confidence of users relying on their reports

A

independence

43
Q

how is criteria diecided on for subjective info?

A

the auditors and the entitities being audited agree on the criteria well before audit starts

44
Q

any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria is called?

45
Q

Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of ____ between the information and established criteria

A

correspondence

46
Q

the audtor must be competent to know what?

A

the types and amount of evidence to accumulate

47
Q

Auditing is the accumulation and evaluation of evidence about ____ to determine and report on the degree of correspondence between the information and established criteria

A

information

48
Q

Evidence is any info used by the auditor to determine whether the info being audited is ____ in accordance with established criteria

49
Q

The auditor must be qualified to understand what?

A

the criteria used (GAAP)

50
Q

Evidence is any info used by the ____ to determine whether the info being audited is stated in accordance with established criteria

51
Q

What would be the criteria for auditing historical financial statements by CPA firms? 2

A
  1. GAAP 2. IFRS
52
Q

auditors must determine the type and amount of evidence necessary and evaluate what?

A

whether the info correspones to the established criteria

53
Q

the competence of those performing the audit is of little value if they are _____ in the accumulation and evaluation of evidience

54
Q

what are 4 forms of evidence?

A
  1. electronic and documentary data about transactions 2. written and electronic communication with outsiders 3. observations by the auditor 4. oral testimony of the client
55
Q

Auditing is the accumulation and evaluation of ____ about information to determine and report on the degree of correspondence between the information and established criteria

56
Q

if irs auditing apple corport tax return what would be the criterial?

A

Internal REvenue code instead of GAAP

57
Q

how are internal auditors kept independent of the operating units they audit?

A

they usually report to top managment and the board of directors

58
Q

what is Evidence

A

any info used by the auditor to determine whether the info being audited is stated in accordance with established criteria

Audit (33 decks)

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