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Definitions |
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Total Product Cost
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DM+DL+MOH
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Debit to Accounts Receivable
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Revenue
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vertical analysis
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analysis individual financial statements by reducing financial info to percentages of a whole
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All bacteria are _____________, which are simply cells whose organelles are not membrane bound.
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prokaryotes
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Net Percentage Markup
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Gross Margin / COGS
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Objectives
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What an organization wants to achieve
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inventory turnover
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cost of goods sold/average inventory
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An event involving interaction between an entity and its environment.
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External Event
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Return on Sales
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Income-to-revenues ratio (or sales ratio) is a frequently used financial performance measure
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12. Long-term liabilities
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liabilities that are not current.
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Performance Standards
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describe the nature of internal audit services and provide quality criteria against which the performance of these services can be measure (2).
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earnings per share is calculated for...
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discounted operations
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Indirect costs are also called what?
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overhead, burden
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IT Governance
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the responsibility of executives and board of directors, and consists of the leadership, and organizational structures, and processes that ensure the enterprise’s IT sustains and extends the organization’s strategies and objectives.
*Businesses with superior IT governance practices generated 20% greater profits on average
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par value
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usually lower than market value of common stock
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Earning Management Defined (Schipper)
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Purposeful intervention in the financial reporting process for private gain
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14. Entity
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organization or a section of an organization that, for accounting purposes, stand apart from other organizations and individuals as a separate economic unit.
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Chief Audit Executive
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The top position within the organization responsible for internal audit activities.
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most acceptable way to measure bad debts...
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allowance method
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Update Anomly
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Consequently, if the value of that data item is not changed in every row in which it is stored, inconsistencies in the database will result.
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An income statement that shows classifications of revenues and expenses as well as important subtotals.
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Mutiple-Step Income Statement
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Risk Assessment
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appetite for risk, capacity of risk, how to identify risk
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Work In Process
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Units of product that are only partially complete.
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30. Objectivity principle
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principle that asserts that data are verifiable and objective. Also called the reliability principle.
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Generally Accepted Government Auditing Standards (GAGAS)
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Standards for financial audits issued by the Comptroller General of the United States through the U.S. Government Accountability Office.
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FOB shipping point
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record sales when goods are shipped, buyer pays for shipping
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Software development costs
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Capitalize R & D Activities that develop or improve a product or process for use in SGA activities
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Document/Record Hash Totals
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reflect a summarization of any numeric data field within the input document or record, such as item numbers or quantities on a customer order. The totaling of these numbers typically serves no purpose other than as a control. Calculated before an then again after entry of the document or record, this total can be used to determine that the applicable fields were entered accurately and completely.
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Sarbanes-Oxley Act of 2002
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-PCAOB relieves the AICPA of it sauthority over establishing: Independence, ethics, quality control and auditing standards for public companies
-PCAOB assumes peer review functions over registered CPA firms
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Risk Response
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An action, or set of actions, taken by management to achieve a desired risk management strategy. Risk response can be categorized as risk avoidance, reduction, sharing, or acceptance.
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What are intangible assets
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Assets that lack physical existence - derive their value from the rights and priviliges granted to the company using them- Not financial instruments
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Cause of Sampling Risk
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inherent part of audit planning that results from testing less than the entire population
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Discount on Notes Payable
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A contra account used to reduce notes payable from face value to the net amount of debt.
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How do you reduce resistance to change?
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build trust, discuss upcoming changes, involve employees in changes, make sure changes are reasonable, avoid threats, sensible time schedule, implement in most logical place
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Maker (of a note)
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The party who prepares a note and is responsible for paying the note at maturity.
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What is an Integrated Audit? What is it so important?
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An audit includes providing assurance on BOTH the Financial Statements AND internal controls over the financial report
REQUIRED for publicly traded U.S. companies
REQUIRED by SOX and PCAOB
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Which of the following best describes the relationship between assurance services and attest services?
(1) While attest services involve financial data, assurance services involve nonfinancial data.
(2) While attest service require objectivity, assu
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(3) Attest services are a subset of assurance services.
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