External Audit
Internal Control
General Auditing Terms
Misc.
Inventory Control
100
Prepared by Client list
What is PBC?
100
it refers to the policies and procedures set by the firm to assure that the objectives will be achieved.
What is it meant by internal control?
100
Payroll
What is the department that determines the amounts of wage or salary due to each employee?
100
The account has 30 days to pay.
What does Net 30 mean?
100
LIFO ( Last in First out) FIFO ( First in First out)
What does LIFO and FIFO stand for?
200
Ernest and Young, Price Waterhouse and Cooper, KPMG, Deloitte
Who is the big four?
200
It impacts both the balance sheet and the income statement.
Problems that might arise from improperly tracking inventory?
200
FASB
What is a non government private organization that sets GAAP in the U.S. for progity making entities and not for profit nongovernmental organizations.
200
liability
Accounts receivable's considered a _____, until the balance is paid off.
200
LIFO (Last in First Out)
Which inventory turnover system shows a higher cost of goods sold?
300
The auditor finds major accounting violations or serious deficiencies that will prohibit the business continuing operations.
What is adverse audit opinion?
300
They normally provide services in three categories 1) Auditing 2) Tax 3) Management Consulting
What kind of services does a CPA provide for a firm?
300
Fraud
What is a deliberate deception to secure unfair or unlawful gain?
300
Arthur Anderson
What accounting firm did Enron use?
300
LIFO
Which inventory system is more conservative?
400
A written confirmation of who the auditor will be and scope of the audit.
What is Terms of engagement?
400
The confidence that the auditors have in the company's internal control system along with quicker and more efficient audits.
What does a company's internal control system have to do with the way the audit is conducted?
400
Embezzlement
What is the action of taking assets in violation of trust?
400
all transactions involving cost of merchandise are recorded immediately as they occur
What is perpetual inventory
400
How does inventory controls keep track of merchandise
What is barcodes or UPC's
500
A duty imposed on the auditor by law.
What is statutory obligation?
500
1. Management Philosophy and Operating style 2. Personal policies and procedures 3. Competence of its staff 4. Accounting System 5. Assest safeguards
What are two factors that determine that effect the firms internal control systems?
500
Consignment
What is the transfer of possession but not the title to goods? Title stays with the consignor, while the consignee has possession.
500
taking no up to date inventory
What is periodic system
500
what is another name for a receiver
What is inventory control clerck
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