MC Cards Flashcards
Inventory turn over ratio
Cogs / inventory
CPA is auditing financials in accordance with GAS. The CPA’s report on compliance with laws and regulations should contain a statement of….
Positive and negative assurance. Positive assurance on those items which were tested for compliance and negative assurance on those items not tested
Debt to equity ratio
Total debt / total equity
Return on equity ratio
Net income/ shareholders equity
Gross margin percentage
Gross margin / sales
Which are trust services principles?
Security, availability, processing integrity, online privacy, and confidentiality
What is an operational audit
It concentrates on seeking out aspects of operations in which waste would be reduced by the indroduction of controls
GAO standards identify three types of impairments of independence…
Personal
External
Organizational
GAS performs functions…
Record extraction Sorting Summarization Field statistics File comparison Gap detection/ duplication
Sampling
Calculation
Exportation
In performing tests of controls, the auditor will normally find that
The rate of deviations in the sample exceeds the rate of error in the accounting records
What is a basic took used by the auditor to control the audit work and review profess if the audit?
Audit program. It aids in instructing assistants in the work and includes audit procedures to accomplish the objectives of the examination
Which is the following forms of auditor association are possible relating to management’s discussion and analysis?
Review and examination. Negative assurance for a review and reasonable assurance for an examination.
What is the definition of assurance services?
Assurance services are independent professional services that improve quality of information, or it’s context, for decision makers.
Definition of attestation services.
Written conclusions about the reliability of the written assertions of another party
Quality control standards
H - human resources E- engagement/client acceptance and continuance L- leadership responsibilities P- performance of the engagement M- monitoring E- ethical requirements
