Assets
The cash normal balance is
a debit
The correct order of the financial statements are
The Balance Sheet, Income Statement and Statement of Cash Flows
Provides the most authoritative guidance for the auditor of a non-issuer?
General guidance provided by a Statement on Auditing Standards. (GAAS by PCAOB)
An amortization schedule is a
Report that details the repayment of the debt instrument according to the terms of the lease
A control an entity uses for monitoring information systems access and rights are
User controls
Inventory is accounted for at this value
Lower of cost or net realizable
The order of line items in the financial statements is based on the
Maturity date of instrument
Entities that issue stock on a public exchange are known as:
Public companies
Different types of a debt instrument are
-Credit card, revolving LOC
-Loan, short or long term
-Bonds
-Notes payable
-Other debt financing agreements
Is a lease agreement that does not transfer ownership to lessee
Investments are held
to earn interest, dividends, and preseve capital
We as independent certified auditors provide what type of assurance
Reasonable
Entities that do not issue stock on a public exchange are known as:
non-issuers
A secured or collateralized loan is
A debt that is secured/guaranteed to an extent by the borrower
Are the main sources of resources for a NFP entity
-Donations, grants, contributions, endowments, fundraisers
Property, plant and equipment include the following in the fixed assets year end schedule:
Beginning balance, depreciation, accumulated depreciation, additions, disposals, ending balance.
FS ratios used to determine profitability and asset rate
-Gross profit/net sales *100
-Net income/total assets
Auditor responsibilities are
- maintaining professional skepticism, following ethical standards, maintaining independence
Is considered long term if more than 12 months
Debt
This type of accounting framework involves categorizing entity functions into "fund types"
Governmental Accounting
Fundamental audit and accounting procedures for an entities Cash account
Accounting- Daily/weekly/monthly account reconciliations, categorization by liquidity
Audit- Review reconciliations, outstanding checks/deposits, negative balances, cash sweep accounts
Financial statement names for a non-profit organization
Statement of Financial Position, Statement of Activities, Statement of Cash Flows
Management Responsibilities are:
-Prep and presentation accordance with applicable framework
- design, implementation and maintenance of internal control
- Provide info necessary to complete audit
The JE for the payment of an accrued liability is
A debit to Payable and a credit to cash/asset payment
Provides verification over a service organizations commitment to operating ethically and in compliance with standards
SOC reports