Chapter 2: The CPA Profession

Question 1

American Institute of Certified Public Accountants

Answer 1

A voluntary organization of CPAs that sets professional requirements, conducts research, and publishes materials relevant to accounting, auditing, advisory services, and taxes.

Question 2

Association of International Certified Professional Accountants

Answer 2

Association that combines the American Institute of Certified Public Accountants and the Chartered Institute of Management Accountants (CIMA).

Question 3

Center for Audit Quality (CAQ)

Answer 3

A public policy organization with a mission to foster confidence in the audit process and to make public company audits even more reliable and relevant for investors.

Question 4

Chartered Global Management Accountant (CGMA)

Answer 4

Management accounting designation established by the American Institute of Certified Public Accountants and Chartered Institute of Management Accountants.

Question 5

Chartered Institute of Management Accountants (CIMA)

Answer 5

The leading and largest professional body of management accountants; the CIMA joined with the American Institute of Certified Public Accountants to create the Association of International Certified Professional Accountants.

Question 6

Generally Accepted Auditing Standards (GAAS)

Answer 6

Refers to AICPA auditing standards developed and issued in the form of Statements on Auditing Standards (SASs) and codified in AU-C sections in the Codification of Statements on Auditing Standards.

Question 7

Public Company Accounting Oversight Board (PCAOB)

Answer 7

Board created by the Sarbanes-Oxley Act; oversees auditors of public companies and broker-dealers, including establishing auditing, attestation, and quality control standards and performing inspections of registered accounting firms.

Question 8

Quality Control

Answer 8

Methods used by a CPA firm to ensure that the firm meets its professional responsibilities to clients and others.

Question 9

Securities and Exchange Commission (SEC)

Answer 9

A federal agency that oversees the orderly conduct of the securities markets; the SEC assists in providing investors in public corporations with reliable information upon which to make investment decisions.

Question 10

Statements on Auditing Standards (SASs)

Answer 10

Pronouncement issued by the Auditing Standards Board of the AICPA applicable to audits of entities other than public issuers.