Auditing Exam
Chapter 1:
1. There is a growing demand for assurance services because the assurance provider is independent and perceived as being embodied with respect to the information examined. Assurance services help improve the reliability and relevance of the information used as the basis for their decisions.
2.The difference between financial statement audits, and operational audits evaluate the efficiency and effectiveness of any part of an organizations operating procedures and methods. While financial statement audits deal with whether the financial statements are stated in accordance with specified criteria.
3. An audit helps reduce information risk by verifying information by auditing financial statements. The most common way for users to obtain reliable information is to have a independent audit. Decision makers then use the audited information on the assumption that it is reasonably complete, accurate and unbiased.
Chapter 2:
1. General Standards:
-Adequate training and proficiency
-Independence in material attitude
-Due Professional care
Standards of Field Work:
-Proper planning and supervision
-Understanding of Entity
-Sufficient appropriate evidence
Standards of Field Work:
-Statements prepared by GAAP
-Circumstances when GAAP
-Adequacy of Disclosures
-Expression of opinion on financial statements
2.Elements of Quality Control:
-Independence, integrity, and objectivity
-Personal Management
-Acceptance and continuation of clients and engagements
-Engagement performance
-Monitoring
3. Sarbanes-Oxley Act changed the way that CPA’s practice when they audit public comp ...