Chapter 16
Chapter 17
Chapter 18
Miscellaneous
Christmas Movie Quotes
100
A(n) ______________ ____________ is a possibly liability, stemming from past events, that will be resolved as to existence and amount by some future event.
What is contingent liability?
100
The term "except for" is used in an __________ opinion.
What is qualified?
100
__________ of SOX is applicable to all publicly traded companies and and requires that each annual report filed with the SEC include an internal control report prepared by management in which management acknowledges its responsibility for establishing and maintaining adequate internal control and provides and assessment of internal control effectiveness as of the end of the most recent fiscal year.
What is Section 404(a)?
100
______________ _____________ are required to be performed near the end of the audit and assist the auditors in assessing the validity of the conclusions reached, including the opinion to be issued.
What are analytical procedures?
100
"You'll shoot your eye out, kid."
What is A Christmas Story?
200
The search for unrecorded liabilities for a public company includes procedures usually performed through this date.
What is the date of the auditors' report?
200
The auditors' _________ ___________ states that the audit was performed in conformity with GAAS and expresses an opinion that the client's financial statements are presented fairly in conformity with generally accepted accounting principles.
What is standard report?
200
A ________ ____________ exists when the design or operation of a control does not allow management or employees, in the normal course of performing their functions, to prevent or detect misstatements on a timely basis.
What is control deficiency?
200
This form is a "current report" filed for any time in which significant events occur for a company subject to the Securities Exchange Act of 1934.
What is a Form 8-K?
200
"The best way to spread Christmas Cheer, is singing loud for all to hear."
What is Elf?
300
Misstatements identified by the auditors during the course of the audit that are due to either extrapolation from audit evidence or differences in accounting estimates are __________ misstatements.
What are likely?
300
Conditions that may cause the auditors to question the ___________ assumption include negative cash flows from operations, defaults on loan agreements, adverse financial ratios, work stoppages, and legal proceedings.
What is going-concern?
300
Existence of a __________ ____________ results in required modification of management's assessment of internal control and the auditors' report on internal control.
What is material weakness?
300
A _____________ is no opinion.
What is disclaimer?
300
“Can I refill your eggnog for you? Get you something to eat? Drive you out to the middle of nowhere and leave you for dead?”
What is National Lampoon's Christmas Vacation?
400
Prior to evaluating the effect of uncorrected misstatements, the auditors should reassess materiality to confirm whether it remains appropriate in the context of the client's actual financial results and will consider both _________ and _________ effects of uncorrected misstatements on relevant classes of transactions, accounts, and disclosures.
What are quantitative and qualitative?
400
Modified opinions are required in these two circumstances:
What are (1) materially misstated financial statements (departure from GAAP) and (2) Inability to obtain sufficient appropriate audit evidence (scope limitation)?
400
A _________________ is a procedure in which an auditor follows a transaction from origination through the company's processes, including information systems, until it is reflected in the company's financial records, using the same documents and information technology that company personnel use.
What is walk-through?
400
__________ _________ __________ are those matters arising from the financial statement audit that were communicated or required to be communicated to the audit committee that relate to accounts or disclosures material to the financial statements and involve especially challenging, subjective or complex auditor judgment.
What are critical audit matters?
400
"Every time a bell rings, an angel gets his wings."
What is It's a Wonderful Life?
500
The primary purpose of the _____________ _________ is to have the client's principal officers acknowledge that the are primarily responsible for the fairness of the financial statements.
What is representation letter?
500
The distinction between the effects of departures from generally accepted accounting principles that are material but not pervasive and those that are material and pervasive is a matter of _____________ _____________.
What is professional judgment?
500
A control that reduces reduces the risk that an existing or potential control weakness will result in a failure to meet a control objective.
What is compensating control?
500
In deciding whether a particular subsequent event should result in an adjustment to the financial statements (Type I) or a note disclosure (Type II), the auditor should carefully consider __________________________________________________________________________________________________
What is "when the underlying conditions came into existence"?
500
"Seeing isn't believing. Believing is seeing."
What is The Santa Clause?
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