Midterm Week 3 Flashcards
1
Q
What are the stages of Audit?
A
Risk Assess (planning) Risk Response (performing) Report (conclusion)
2
Q
what is going concern?
A
the viability that a company to remain in business for the foreseeable future.
assessing if there is a risk, and if there is one that is large enough present then it must be included
3
Q
steps to understand client
A
make inquires - management - financial and non-financial staff at all levels perform analytical procedures - looking for unusual relationships perform observation and inspection procedures - tour facilities - read management reports
4
Q
what is fraud? and what are types of fraud?
A
an intentional error in financial statements.
financial fraud: misstatements
theft: taking of physical assets
5
Q
What are some ways to prevent fraud?
A
(CRIME)
Control, Risk Assessment, Internal, Monitoring, Environment
