Accounting Terms: Definitions of Key Auditing Concepts, Quizzes of Accounting

Download Accounting Terms: Definitions of Key Auditing Concepts and more Quizzes Accounting in PDF only on Docsity! TERM 1 Accounting DEFINITION 1 the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision-making. TERM 2 Assurance Service DEFINITION 2 an independent professional service that improves the quality of information for decision makers. TERM 3 Attestation Service DEFINITION 3 a type of assurance service in which the CPA firm issues a report about the reliability of an assertion that is the responsibility of another party. TERM 4 Audit of historical financial statements DEFINITION 4 a form of the attestation service in which the auditor issues a written report stating whether the financial statements are in material conformity with accounting standards. TERM 5 Audit Report DEFINITION 5 the communication of audit findings to users TERM 6 Auditing DEFINITION 6 the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. TERM 7 Certified Public Accountant DEFINITION 7 a person who has met state regulatory requirements, including passing the uniform CPA exam, and has thus been certified; a CPA may have as his or her primary responsibility the performance of the audit function on published historical financial statements of commercial and noncommercial financial entities. TERM 8 Compliance Audit DEFINITION 8 a review of an organization's financial records performed to determine whether the organization is following specific procedures, rules, or regulations set by some higher authority. Also an audit performed to determine whether an entity that receives financial assistance from the federal gov't has complied with specific laws and regulations. TERM 9 Evidence DEFINITION 9 any info used by the auditor to determine whether the information being audited is stated in accordance with established criteria. TERM 10 Financial Statement Audit DEFINITION 10 an audit conducted to determine whether the overall financial statements of an entity are stated in accordance with specified criteria. TERM 21 Center for Audit Quality DEFINITION 21 an autonomous 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 TERM 22 Generally Accepted Auditing Standards DEFINITION 22 10 auditing standards developed by the AICPA, consisting of general standards, standards of field work, and standards of reporting, along with interpretations, often called auditing standards TERM 23 International Standards on Auditing DEFINITION 23 statements issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants to promote international acceptance of auditing standards. TERM 24 Peer Review DEFINITION 24 the review by CPAs of a CPA firm's compliance with its quality control system TERM 25 Public Company Accounting Oversight Board DEFINITION 25 Board created by SOX to oversee auditors of public companies, including establishing auditing and quality control standards and performing inspections of registered accounting firms. TERM 26 Quality Control DEFINITION 26 methods used by a CPA firm to ensure that the firm meets its professional responsibilities to clients and others. TERM 27 SEC DEFINITION 27 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. TERM 28 Statements on Auditing Standards DEFINITION 28 pronouncements issued by the AICPA to interpret generally accepted auditing standards.