ACCT 3222 Final Exam with Questions and 100% Correct Solutions
6 views 0 purchase
Course
ACCT 3222
Institution
ACCT 3222
Assurance Services - Answer Indepent professional services that improve the quality of
information, or its context, for decision makers. Encompasses attest services and financial
statement audits
Attest Services - Answer Services provided by a practitioner engaged to issue a report on
subject m...
ACCT 3222 Final Exam with
Questions and 100% Correct Solutions
Assurance Services - Answer Indepent professional services that improve the quality of
information, or its context, for decision makers. Encompasses attest services and financial
statement audits
Attest Services - Answer Services provided by a practitioner engaged to issue a report on
subject matter, or an assertion about subject matter, that is the responsibility of another
party. Encompasses financial statement audits.
Audit Evidence - Answer All the information used by the auditor in arriving at the conclusion
on which the audit opinion is based. Audit evidence includes the information contained in the
accounting records underlying the financial statements, as well as other information.
Information Asymmetry - Answer The concept that the manager generally has more
information about the true financial position and results of operations of the entity than
the absentee owner does.
Materiality - Answer The maximum amount by which the auditor believes the
financial statements could be misstated and still not affect the decision of users.
Engagement Risk - Answer The overall risk of a (monetary) loss or injury to the auditor's
reputation by association with a client that:
- goes bankrupt
- management lacks integrity
, To minimize engagement risk, audit firms should evaluate - Answer - new clients prior
to appointment (acceptance)
- existing clients prior to being reappointed (continuation)
Family Relationships - Immediate Family - Answer spouse or dependent children
IMPAIRED IF:
- if they hold a "material position" is an audit client
- if the family member is employed in a "key position"
Family Relationships - Close relative - Answer parents, siblings, nondependent children "related
financially"
IMPAIRED IF:
- if they hold a "material position" an audit client and the auditor is aware of it
- if the family member is employed in a key position
Nonattest services - Answer bookkeeping, system implementation, internal audit outsourcing
The SEC rules are predicated on 3 basic principles of auditor objectivity - Answer 1. An
auditor shouldn't audit own work
2. An auditor shouldn't function in the role of management
3. An auditor shouldn't function in the advocacy role for the entity
*generally, a firm cannot provide non-audit services to a publically audited client*
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller KenAli. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
