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ADMS 2500 > Module 14 > Flashcards

Module 14 Flashcards

1
Q

What is Internal Control?

A

We need to safeguard assets, promote efficiency and accurate F/S

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2
Q

What is the point in accounting?

A

It is to turn data sets into usable information while following GAAP

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3
Q

What is an open system?

A

They interact with their enviroment

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4
Q

What is a closed system?

A

They do not interact with their environment`

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5
Q

Why does accounting need theory?

A

Can be viewed as a profession with rules

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6
Q

What is a conceptual framework?

A

A theory with holes, but has guidelines

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7
Q

What are some important elements of Conceptual Framework?

A

Professional and Technical foundations

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8
Q

What are some detailed objectives of accounting?

A

Relevance and Reliability to make quick and proper decisions

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9
Q

What is an accounting world ruled with Relevance look like?

A

Cash and Market Values

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10
Q

What is an accounting world ruled with Reliability look like?

A

Scorecard and Accrual Basis

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11
Q

What are accounting standards?

A

Specifies how events are recognized and presented

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12
Q

Who is responsible for CPA Handbook?

A

AcSB or Accounting Standards Board

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13
Q

What is IFRS?

A

International Financial Reporting Standards

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14
Q

What is ASPE?

A

Accounting Standards for Private Enterprises

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15
Q

Why is auditors pesky?

A

They want safe harbors and assurance that we are not cooking books

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16
Q

Why do we need Internal Control?

A

Safeguard Assets, Promote efficiency and ethics

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17
Q

Why is IC important?

A

Because it is the glue between trust and F/S

18
Q

What is Internal Control Hierarchy

A

4 Goals, 40, Principles and 40,000 Procedures

19
Q

What are some principles of Internal Control?

A

Segregation of duties and Documentation Standards

20
Q

What are some questions that auditors ask on IC?

A

Effective, Efficient, Continuous and Redundant

21
Q

What are 2 types of control?

A

Preventive and Detective

22
Q

What are some objectives of Revenue Cycles?

A

Access to records with few, different people handle different assets

23
Q

What is procedure for cash receipts?

A

Manager compares total and ultimate security with cheques

24
Q

What is an audit?

A

Independent verification with standards

25
Q

What are types of Audits?

A

Internal and External

26
Q

Facts about the Internal Audit?

A

Employee who serves management and is REAL Accountant

27
Q

Facts about the External Audit?

A

Licensed and Specialized in looking for errors

28
Q

Can F/S readers sue?

A

Yes for Fraud and negligence

29
Q

How much liability do auditors have?

A

Unlimited and risky, they also act as insurance providers too for errors

30
Q

What is the structure for a public accounting firm?

A

They are built on partnerships with 18 staff a partner

31
Q

What is sold by public accounting firm?

A

Assurance at many levels, Taxation, Consulting and Bookeeping

32
Q

What are 3 sets for accounting?

A

Legal, Ethical and Performance

33
Q

What are 4 categories of Accounting Ethics?

A

Standards, Relations with peers, Conduct and Public interest

34
Q

What are some major issues on accounting ?

A

Exception Gap, Liability and New concepts

35
Q

Common misconception of Auditors?

A

They do not guarantee the financial health of a business

36
Q

Why we need Internal Control?

A

Assets may disappear and maybe we have cooked books

37
Q

Why is F/S reporting important?

A

Cant rely on them and their assets

38
Q

When do Internal Controls occur?

A

Happens when a scandal occurs

39
Q

How do we structure Internal Controls?

A

Have big goals, then dozen principles and thousands of principals

40
Q

What are principles of I/C?

A

Separate recording and custody, rotation of duties

41
Q

How can we have the best I/C?

A

Is it effective, efficient, continuous n and redundant

ADMS 2500 (11 decks)

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