AUDIT BASICS
The objective of an audit.
What is to express an opinion on whether the FS are fairly presented?
This federal agency is responsible for tax collection and enforcement in the U.S.
What is the IRS?
This reports wages, tips, and compensation paid to employees.
What is Form W-2?
The purpose of internal controls in a business.
What is to safeguard assets, ensure accurate financial reporting, and promote compliance with laws and regulations?
Material misstatements are primarily a concern for which service line?
What is Audit?
This threshold is used to determine if an error is significant.
What is materiality?
What amount of Gambling winnings are not taxable?
What is all gambling winnings are taxable?
This IRS Form is used to request an automatic extension of time to file business income tax returns.
What is form 7004?
A plan or organization and all of the coordinating methods adopted within a business.
What are internal controls?
This reduces tax liability not income.
What are tax credits?
The three types of audit opinions include qualified, unqualified, and...
What is an adverse opinion (plus disclaimer of opinion)?
This type of income is taxed at a lower rate than ordinary income and includes gains on assets held more that one year.
What is long-term capital gains?
This is filed annually to report information about employee benefit plans like 401Ks.
What is Form 5500?
An employee both opens mail and records payments. The name of internal control weakness that this illustrates is ...
What is a lack of segregation of duties?
*Daily Double*
Known by the acronym COSO, this joint initiative of five private sector organizations is renowned for its framework on internal controls, risk management, and fraud deterrence.
What is the Committee of Sponsoring Organizations of the Treadway Commission?
This control deficiency is severe enough to merit attention by those charged with governance.
What is a material weakness?
This tax credit gives a refund even if you owe no taxes and is aimed at low- to moderate- income working individuals and families.
What is the Earned Income Tax Credit (EITC)?
This is used to reconcile & report payroll taxes withheld with taxes paid during the year.
What is Form 941?
This agency can improve financial practices and reporting and enhance both the internal and external functions in this field.
What is an audit committee?
Analytical procedures are used in both audit planning and what else?
What is review?
This type of risk includes inherent risk, control risk, and detection risk.
What is audit risk?
The standard deduction for a single filer in tax year 2023.
What is $13,850?
This is used by businesses to report payments to independent contractors.
What is Form 1099-NEC?
The framework commonly used to evaluate internal controls systems.
What is the COSO framework?
This accounting method allocates the cost of a tangible asset over its useful life, reflecting the wear and tear, decay, or decline in value over time.
What is depreciation?