ACCT 3222 Exam 1-Questions And Answers

ACCT 3222 Exam 1-Questions And Answers What is the role of auditing? -ANS-To determine whether the reports prepared by the manager conform to the contract's provisions (reduces information risk) What is the main task of the auditor? -ANS-To collect sufficient appropriate evidence that management's assertions regarding the financial statements are correct 3 aspects of information reflected in financial statements: -ANS-transactions, account balances, and presentation & disclosure three overlapping categories of services that are intended to provide assurance about information provided by one party to another -ANS-auditing, attest services, assurance services systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users -ANS-Auditing occur when a practitioner is engaged to issue... a report on subject matter, that is the responsibility of another party (FS auditing is a specialized form of this) -ANS-Attest Services independent professional services that improve the quality of information, or its context, for decision makers -ANS-Assurance Services Financial statement audit process for management -ANS-implement internal control, conducts transactions, accumulates transactions into account balances, prepares financial statements, issues financial statements to users Financial statement audit process for auditor -ANS-Obtains evidence, tests management assertions against criteria (GAAP), determines overall fairness of financial statements, issues audit report to accompany financial statements