Chapter 1 - The Auditing Profession & Chapter 2 - The CPA Profession Flashcards
GAO
Government Accountability Office Auditor
IRA
Internal Revenue Agents
Internal Auditors
Employed by all types of organizations to audit for management.
CPA
Certified Public Accountant
Auditing Services
Accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria.
Attestation Services
A type of Assurance Service in which Audits and Reviews happen.
Assurance Services
Independent professional service that improves the quality of information for decision makers. (Consumer Reports, BBB, etc.)
GAAS
Generally Accepted Auditing Standards.
Issued by ASB
GAAS - General Standards
(1) Audit to be performed by a person with adequate training as an auditor.
(2) Independence.
(3) Due professional care is to be exercised.
GAAS - Standards of Field Work
(1) Audit is to be adequately planned and assistants are to be properly supervised.
(2) Sufficient understanding of Internal Controls
(3) Sufficient appropriate evidential matter is to be obtained to afford a reasonable opinion.
PCAOB
Public Company Accounting Oversight Board.
Overseen by the SEC.
Conducts inspections of registered accounting firms.
SEC
Securities and Exchange Commission.
Securities Act of 1933
Requires new publicly traded companies to file a Form S-1
Securities Act of 1934
Requires publicly traded companies to file a Form 10-K
Form S-1
New company
Form 8-K
Significant events that are of interest to public investors.
Form 10-Q
Quarterly report
Form 10-K
Annual report
AICPA
American Institute of Certified Public Accountants. Restricted to CPAs, but not all members are practicing as independent auditors.
Sets up ASB.
SAS
Statements on Auditing Standards.
ASB
Auditing Standards Board. Issue Pronouncements on auditing matters in the U.S. for all entities other than publicly traded companies. Pronouncements are called SASs.
GAAS - Standards of Reporting
(1) The report shall state whether the financial statements are presented in accordance with GAAP.
(2) The report shall identify those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
(3) Informative disclosures in the FINS are to be regarded as reasonably adequate unless otherwise stated in the report.
(4) The report shall contain either and opinion or an assertion to the effect that an opinion cannot be expressed.
Peer Review
Practice-monitoring, is the review of CPAs, of other CPA firm’s compliance with its quality control system.
CPA Services
(1) Auditing
(2) Accounting & Bookkeeping
(3) Tax
(4) Management Consulting
