Cash and Marketable Securities
Acquistion Process
Long Lived Assets
Debt Obligations
Audit Reports
100
Which financial statement assertion would support verifying marketable securities at the balance sheet date?
What is the Existence or Occurance Assertion
100
These are items of tangible personal property that are held for sale in the ordinary couse of business
What is Inventory
100
This term describes management's recognition that a significant portion of fixed assets is no longer as productive as had originally been expected.
What is Asset Impairment
100
This is the definition of Debt Convenants
What is restrictions in debt agreements aimed at protecting the lender by restricting the activities of the borrower.
100
These types of opinions are considered Modified Opinions
What are qualified, adverse or disclaimer
200
Confirming with financial instituations those individuals that are authorized to access cash accounts, along with those authorized to start a new account or eliminate an existing account is this type of procedure
What is Substantive
200
Major Accounts in the Acquisition and Payment Cycle
What are Inventory, Cost of Goods Sold, Accounts Payable, and Other Expense Accounts
200
This is an inherent risk related to long-lived asset accounts
Incomplete recording of asset disposals
200
Bonds Payable, Interest Payable, Gains or losses on refinancing debt; Notes Payable and Mortage Payable.
What are relevant accounts to consider when auditing debt obligations
200
Which two priniciples perscribed by the AICPA governs an audit conducted in accordance with GAAS
What are principles 1 and 7
300
Comparing monthly cash balances with past years and budgets is this type of procedure
What is Analytical
300
This Department is responsible for ensuring only authorized goods are received, the goods meet order specifications, an accurate count of the goods received is taken and that accountability is established to assue that all receipts are recorded?
What is the Receiving Department
300
Overstating assets through overvaluing existing assets, including fictitious assts, or capitalizing expense.
What are techniques used to fraudulently misstate financial statements
300
The authorization to issue a bond is limited to this group
What is the Board of Directors
300
The following are 2 out of 6 requirements that has to exist for the issuance of an unqualified report for public companies
What are: No material violation of GAAP and Disclosures are adequate
400
These are the three categories of Fraud
What are Incentives, Opportunities and Rationalization
400
This assertion relates to ensuring the recorded balances reflect the true underlying economic value of those assets
What is Valuation or allocation
400
These controls affect multiple assertions for long-lived assets
What are formal budgeting and monitoring and written policies and procedures for acquisition and disposal of long-lived assets
400
Authorization of debt, receipt of funds and recording of debt transactions, and compliance with debt convenants are considered as what type ofdebt obligation risk
What is inherent risk
400
The Auditor should issue this type of audit report when financial statements contain a pervasive and material unjustified departure from GAAP or lack of important disclousures.
What is an Adverse Audit Report
500
What are the following to the cash cycle: general checking , cash management, imprest payroll and petty cash
What are types of Cash Accounts
500
This type of assessment is performed to determine the whether modifications to the preliminary control risk assessment are required
What are Control Deficieny Assessments
500
Comparing capital expenditures with the client's capital budget, with an expectation that capital expenditures would be consistent with the capital budget is considere what type of procedure
What is analytical
500
These are controls over Stockholders' Equity Transactions
What are approval and authorization of stock transactions; timely reconcilement for relevant accounts; and review of draft financial statements for proper disclosure.
500
Name 2 of the 5 situations in which the auditor will modify the audit report on ICFR effectiveness
"Management report on IC is incomplete Engagement Scope Restrictions The auditor refers to the report of other auditors as the basis, in part, of the auditor's own report Other information contained in management's annual report on ICFR, and Management's annual certification pursuant to section 302 of the SOX act is misstated."
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