a. Which of the following best describes the relationship between assurance services and attest
While attest services involve financial data, assurance services involve nonfinancial data.
While attest services require objectivity, assurance serv
For tax purposes, debts that become worthless within the taxable year shall be
considered as bad debts, which are deductible. However, the bad debt deduction
does not apply to any nonbusiness debts. The nonbusiness debts that become
Fundamentals of Auditing Principles and Theory Exam #1 Review
1. Professional Standards issued by AICPA
2. Function of the AICPA
3. Essential Parts of Every CPA Engagement
4. Reason why auditors report on Financial Statements
5. Sabernes-Oaxley and the ad
Exam #2 Outline
1. Required documentation in an audit
2. What is and what isnt an analytical procedure
3. Risk analysis related to fraud
4. Types of audit evidence
5. Know different types of risk:
a. Control risk
b. detection risk
c. inherent risk
Which of the following organizations can revoke the right of an individual to practice as a CPA?
The Public Company Accounting Oversight Board.
The American Institute of Certified Public Accountants.
The Securities and Exchange Commission.
[The following information applies to the questions displayed below.]
Select the best answer for each of the following questions.
Award: 0 out of 4.00 points
A material departure from generally accepted accounting principles
Pigeon Express currently plows back 40 percent of its earnings and earns a return of 20% on this investment. The dividen
dividendsamount 4 euros then share price is 100 Euros.
a. Assuming that Pigeon can continue to plow back this proportion o
1-3, 10-12, 14, 15, 17,23, 28, 33, 43, 44, 51
1) Audit risk is the possibility that the auditors may unknowingly fail to appropriately modify their
opinion on financial statements that are materially misstated. Detection risk is the risk that the
Chapter 16: 1-4, 9, 14, 18, 20, 22, 28, 31, 36, 38, 40
1) Three revenue accounts: Accounts receivables- sales; notes receivables- interest; intangible assetsroyalties
2)Analytical procedures are used in the verification of revenue to compare the current r
In this case, Mark serves as the audit partner on the audit of Surfer Dude Duds (SDD). George is
the CEO of SDD, a retail outlet that sells clothes and accessories popularized by the surfer culture. Due
to a mild r
Marta purchased a 1920s house in a downtown district of Atlanta during her
visit and decided to move the entire home to her hometown in Manhattan, Kansas.
She also renovated the home after moving. She filed the rehabilitation expendi
Pertaining to the lakeside case, each auditor would have to decide by themselves whether Store Six
represents a material contingency for this client. If store six closes the firm should be evaluated against
the clients 500,000 net