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leuk
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white
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CGAS
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COGS + EI
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dividend payout ratio
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dividends
÷
net income
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Crazy Eddie
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-Procedures for taking inventory
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Define equipment.
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Equipment includes delivery equipment, office equipment, machinery, furniture and fixtures, furnishings, factory equipment, and similar fixed assets.
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owner's equity
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owners claim to the business
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Objectivity
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allows IAs make a balance assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.
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Account
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The basic unit for recording transactions
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A business with a single owner
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Proprietorship
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Manufacturing Overhead
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All manufacturing costs except direct materials and direct labor.
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7. Balance sheet
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entity's assets, liabilities, and owner's equity as of a specific date. Also called the statement of financial position.
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Entity-level Controls
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Controls that operate across an entire entity and, as such, are not bound by, or associated with, individual processes.
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increase in stock holders equity that result in delivering goods...
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revenues
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Portal
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initial point of entry to the web
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Program Change Controls
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provide assurance that all modifications to programs are authorized and that the changes are completed, tested, and properly implemented.
*DevelopmentTesting (Quality Assurance)StagingProduction
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General Ledger
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a ledger that contains all accounts needed to prepare financial statements
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A Trial Balance
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bookkeeping process steps would detect an error resulting in debits not equaling credits
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bank statement
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an itemised record of all the transactions in a depositor's account over a given period, usually a month
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Residual Risk
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The portion of inherent risk that remains after management executes its risk responses (sometimes referred to as net risk).
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an example of a temporary account is...
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rent expense
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Subschema
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(1) A subset of the schema that includes only those data items used in a particular application program or by a particular user. (2) The way the user defines the data and the data relationships.
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A liability evidenced by a written promise to make a future payment
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Note payable
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Probabilistic Sample
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each population item has a known probability of being included in the sample and the sample is selected by a random process
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FCPR- Internal Control Requirements
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-All SEC registrants must maintain internal account controls
-Implications for due diligence requirement
-Auditor must evaluate control environment under GAAS
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2. Classified balance sheet
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balance sheet that classifies each asset and each liability as either current or long-term.
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Risk Tolerance
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The acceptable levels of risk size and variation relative to the achievement of objectives, which must align with the organization's risk appetite.
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cash recipts from investing activities include..
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sale of plant assets
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*
Which term is used to describe "the multiplication of organisms in tissue"?
a. nosocomial
b. infection
c. cross contamination
d. culture
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b. infection
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Effectiveness
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a measure of success in meeting one of more goals for the operations process.
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The balance sheet might also be called
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Statement of Financial Position
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Effect of writing off Bad Debts
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NO INCME ON BALANCE SHEET.
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*
The two most common types of packaging methods are the ____________ and __________ folds.
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envelope, or diagonal fold
square fold
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periodic budget
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a budget that is prepared for a given period, such as quarter or a year
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Secondary Activity (of Act. Attributes)
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Activity consumed by other primary & secondary activities
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Competitive Advantage - Value Chain
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providing value to the stakeholder - customer, supplier, manager, or employee - is the primary goal
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the amortization of a discount on bonds payable purchased as a long term investment does what...
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increases the amount on the investment account
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lower of cost or market on balance sheet
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loss due to decline in inventory
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What is it meant by "double-entry accounting" system?
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A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.
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arthr/o
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joint
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erythrocyte
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red blood cell
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cephalic
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pertaining to the head
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Eavesdropping
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Observing data transmissions intended for someone else. One way unauthorized individuals can intercept signal is by setting up a wiretap.
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Assets
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Resources owned by a business
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8. Capital
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representation of ownership investment by an owner of a proprietorship.
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The ______ issues Statements on Standards for Attest Engagements (SSAEs) for attest engagements other than financial statements.
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AICPA
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Net Income
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occurs when revenues exceed expenses
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Mathematical Accuracy Checks
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compare calculations performed manually to those performed by the computer to determine whether a document has been entered correctly. For this check, the user might enter the individual item (e.g., quantity purchased, unit cost, tax, shipping cost) on a document, such as an invoice, and the total for that document. Then the computer adds the individual items and compares that the total to the one input by the user
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Days Sales in Inventory
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365 / Inventory Turnover
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quick ratio
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cash + accounts recievable + marketable securities
÷
current liabilities
measure of liquidity
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Individual Objectivity
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An unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that no significant quality comprimises are made. Objectivity requries internal auditor not to subordinate their judgment on audit matters to that of others.
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Asset
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A future economic benefit. i.e. cash, accounts recievable, prepaid insurance and rent, marketable securities
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The owners' equity in a corporation.
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Stockolder's Equity
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Separate entity
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transactions of the business are separate from the ones of the owners
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Fixed Cost
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A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range.
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Engineered Costs
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result from a cause and effect relationship between the cost driver-output- and the (direct or indirect) resources used to product that output
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Step-Variable Costs
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Costs that are only obtainable in large chunks
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Regulatory and Legal Misconduct
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Includes conflicts of interest, insider trading, theft of competitor trade secrets, anti-competitive practices, environmental violations, and trade and customs regulations in areas of imports/exports.
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Negative Assurance
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A rating or conclusion indicating that nothing negative has come to the internal auditor's attention.
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Parnership
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An association of two or more persons to carry on as co-owners of a businesses for profit
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financial perspective
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focuses on financial measures of an organization's sucess, such as various measures of profitability
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IRS
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audits you to check and see if you prepared your tax return/payments properly
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depositor
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a person or business that has cash on deposit in a bank
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The serially-numbered pronouncements issued by the Auditing Standards Board (ASB) over a period of years are known as:
(1) Auditing Statements of Position (ASPs).
(2) Accounting Series Releases (ASRs).
(3) Statement on Auditing Standards (SASs).
(
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(3) Statement on Auditing Standards (SASs).
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Current Assets
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An asset that is expected to be realized in cash or sold or consumed during the operating cycle or within one year if the cycle is shorter than one year.
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What is information literacy?
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An individual's level of facility with information.A particular knowledge base or skill set.Understanding of information in a business.
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Random Number Sample Selection
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every possible combination of elements in the population has an equal chance of making up the sample
- can use random number table but is usually
computer generated
- probabilistic
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24. Limited-liability company
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company in which each member is only liable for his or her own actions or those under his or her control.
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Non-value added costs
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Costs caused by NVA activities or by inefficient performance of VA activities
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How are intangible development costs treated?
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Intangible development costs are considered part of the deplation base.
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Earning Management Defined (Healy and Whalen)
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Judgment in financial reporting and structuring transaction to mislead some stakeholder
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If a company pays interest semi annually, the second journal entry looks like...
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interest receivable and interest revenue
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Characteristics of a Government (4 P's)
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1. Public corporations and bodies
2. Popular election of officers
3. Potential for unilateral dissolution by government (assets go to government)
4. Power to enact and levy taxes
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When is a change in depreciation estimate recorded?
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In the current and prospective periods; do not make any changes in previously reported periods
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How should gains or losses on the exchange of dissimilar nonmonetary assets be recognized?
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Because the earnings process is complete, gains or losses on the exchange should be recognized immediately.
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Fourteen Steps of Audit Sampling - Plan the Sample (9)
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1. state the objectives of the audit test
2. decide whether audit sampling applies
3. define the attributes and exception conditions
4. define the population
5. define the sampling unit
6. specify the tolerable exception rate (TER)
7. specify acceptable risk of assessing control risk too low (ARACR)
8. estimate population exception rate
9. determine initial sample size
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ledger
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a group of accounts
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posting
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transferring information from a journal entry to a ledger account
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Assets
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anything of value that is owned
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Stockholders' Equity
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The stockholders' ownership interest in the assets of a corporation
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journal
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a ledger in which transactions have been recorded as they occurred
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Stockholders ' equity
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Captial stock (investments by stockholders) and Retained earnings (earnings kept for use)
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Accounting Equation
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An equation showing the relationship among assets, liabilities, and owner's equity
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merchandising business
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a business that purchases and sells goods
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debit memorandum
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a form prepared by the customer showing the price deduction taken by the customer for returns and allowances
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subsidiary ledger
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a ledger that is summarized in a single general ledger account
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controlling account
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an account in a general ledger that summarizes all accounts in a subsidiary ledger
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Double-entry accounting
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recording of debit and credit parts of a transaction
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petty cash
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An amount of cash kept on hand and used for making small payments
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