CPA Audit Review Module 2-1

Card Set Information

Author:
Joens1313
ID:
294683
Filename:
CPA Audit Review Module 2-1
Updated:
2015-02-03 01:12:29
Tags:
CPA Audit Review Module
Folders:

Description:
CPA Audit Review Module 2-1
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Joens1313 on FreezingBlue Flashcards. What would you like to do?


  1. For financial statement assertions, the transaction class level, what is occurence?
    Occurence is the transactions and events that have been recorded have occured and pertain to the entity.
  2. For financial statement assertions, the transaction class level, what is Completeness?
    completeness is all transaction and events have been recorded
  3. For financial statement assertions, the transaction class level, what is accuracy?
    amounts and other data relating to recorded transactions have been recorded appropriately
  4. For financial statement assertions, the transaction class level, what is cutoff?
    transactions and events have been recorded in the correct accounting period
  5. For financial statement assertions, the transaction class level, what is classification?
    classification is when transactions and events have been recorded in the proper accounts
  6. For financial statement assertions, the account balance level, what is existence?
    Existence is assets, liabilities and equity interest exist
  7. For financial statement assertions, the account balance level, what is rights and obligations?
    Rights and obligations are when the entity holds of controls the rights to assets and liabilities are the obligations of the entity.
  8. For financial statement assertions, the account balance level, what is completeness?
    Completeness is when all assets liabilities and equity interest have been recorded
  9. For financial statement assertions, the account balance level, what is Valuation and allocation?
    Valuation and allocation is when assets, liabilities and equity interests are included at appropriate amounts.
  10. For financial statement assertions, the disclosures, what is occurrence?
    Occurrence is when disclosed events and transactions have occurred
  11. For financial statement assertions, the disclosures, what is Rights and obligations?
    Rights and obligations are when disclosed events pertain to the entity.
  12. For financial statement assertions, the disclosures, what is completeness?
    Completeness is when all disclosures that should have been included have been included.
  13. For financial statement assertions, the disclosures, what is accuracy and valuation?
    accuracy and valuation is when information is disclosed fairly and at appropriate amounts
  14. For financial statement assertions, the disclosures, what is classification and understandability?
    classification and understandability is when information is presented and described clearly
  15. what should the audit be designed to do?
    limit audit risk to an appropriately low level.
  16. How may audit risk be assessed?
    quantitative and non-quantitative
  17. what are the components of audit risk?
    • inherent risk
    • control risk
    • detection risk
  18. Inherent risk
    control risk
    detection risk
    are components of what?
    audit risk
  19. ------------------ refers to the likelihood of material misstatement of an assertion assuming no related internal control.
    inherent risk refers to the likelihood of material misstatement of an assertion assuming no related internal control.
  20. inherent risk refers to -----------------------.
    inherent risk refers to the likelihood of material misstatement of an assertion assuming no related internal control.
  21. -------------------- is the likelihood of material misstatement of an assertion assuming no related internal control
    control risk is the likelihood of material misstatement of an assertion assuming no related internal control
  22. control risk is the ---------------------------------
    control risk is the likelihood of material misstatement of an assertion assuming no related internal control
  23. --------------------- is the likelihood that an auditors procedures lead to an improper conclusion that no material misstatement exists in an assertion when in fact such a misstatement does exist.
    Detection Risk is the likelihood that an auditors procedures lead to an improper conclusion that no material misstatement exists in an assertion when in fact such a misstatement does exist.
  24. Detection Risk is the --------------------------.
    Detection Risk is the likelihood that an auditors procedures lead to an improper conclusion that no material misstatement exists in an assertion when in fact such a misstatement does exist.
  25. How are inherent risk and control risk different from detection risk?
    they exist independently of the audit, where as detection risk relates to the effectiveness of the auditors procedures.
  26. What is the relation ship between control risk and detection risk?
    inverse
  27. What are the 3 conditions that must be present when fraud exist?
    • incentive or pressure
    • opportunity
    • attitude or rationalization

What would you like to do?

Home > Flashcards > Print Preview