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Cards In This Set
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What is the point of the Lemmons article?
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To argue that auditing may not be necessary and it's because the government says we have to do it.
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What is needed to do an audit?
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Information in a verifible form and criteria. (FASB and IASB)
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What are the three parts that are needed for evaluation of evidence?
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Competence, Independence, and experience
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What are different causes of information risk?
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Remoteness of information, volume, biases, and complex transactions
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What are attestation services?
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CPA reports on the reliability of an asssertion. Includes audits, reviews, internal controls, information tech, and others
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What is in the venn diagram?
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Assurance: the attestation and some others. Others don't require reporting. In the middle "certain consulting" not assurance: taxes, bookkeeping, and others.
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What are some examples of assurance that isn't attestation. In other words, ones that don't need reporting?
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Risks related to investment, compliance agreements, how green they are.
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What are the three different types of audits?
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Operational, compliance, and financial statements.
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What are the four types of auditors?
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CPA firms, Government auditors, IRS agents, and internal auditors.
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Who grants CPA firms the right to do audits?
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The state regulates CPA firms.
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What are the three main factors that influence the way CPA firms are organized?
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The need for independence from clients, the importance of comptenence, and the increased litigation risk.
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What are all the ways to set up a company legally and which way do most CPA firms set themselves up?
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Proprietorship, general partnership partnership, general corporation, professional corporation, Limited Liability company (this) and limited liability partnership (this)
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What is the accounting hierarchy?
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Staff assistants (0-2 years), seniors and in-charge auditors (2-5 years), managers (5-10 years) and partner (10+ year)
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What came out of the sarbanes oxley act and who was it for?
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It's for publicly held companies and their auditing firms.
1) Managers and auditors report on internal controls 2)CEOs and CFOs have to sign the financial reports 3) It limits the non-audit work that auditors can perform 4) audit firms are subject to review by the PCAOB |
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What is the purpose of the SEC and what are the reports that must be filed?
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It helps investors get reliable information.
Form S1 (start up), 8K (any big changes), 10k (annual report) 10Q (quarterly report) |
