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AUD CPA Glossary Terms Updated 2024

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AUD CPA Glossary Terms Updated 2024 Account Balances - ANSWER-One of three categories of financial statement assertions, relating primarily to assets, liabilities, and equity interests. Accounting Estimate - ANSWER-An approximation of a financial statement element, item, or account used becaus...

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  • November 10, 2024
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  • 2024/2025
  • Exam (elaborations)
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AUD CPA Glossary Terms Updated
2024

Account Balances - ANSWER✔✔-One of three categories of financial statement

assertions, relating primarily to assets, liabilities, and equity interests.


Accounting Estimate - ANSWER✔✔-An approximation of a financial statement

element, item, or account used because data either is not readily available or is

dependent upon the outcome of future events.


Accounts Payable Confirmation - ANSWER✔✔-A request for independent verification

of payables.


Accounts Receivable Confirmation - ANSWER✔✔-A request for independent

verification of receivables. Note that confirming accounts receivable is a required,

generally accepted auditing producre.


Accuracy - ANSWER✔✔-A financial statement assertion in the "transactions and

events" category indicating that amounts and other data relating to recorded

transactions and events have been recorded properly.




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Accuracy and Valuation - ANSWER✔✔-A financial statement assertion in the

"presentation and disclosure" category indicating that financial and other information

are disclosed fairly and at appropriate amounts.


Activity Ratio - ANSWER✔✔-A ratio that measures how effectively an enterprise is

using its assets.


Adverse Opinion - ANSWER✔✔-An auditor's report stating that the financial

statements "do not present fairly..."


Aging Schedule - ANSWER✔✔-A listing of accounts receivable categorized by age (i.e.,

current, 30 to 60 days, 60 to 90 days, etc.).


Agreed-upon Procedures - ANSWER✔✔-An engagement in which a practitioner is

engaged to issue a report of findings based on specific agreed-upon procedures.


AICPA Code of Professional Conduct - ANSWER✔✔-Guidelines for the behavior of

members of the American Institute of Certified Public Accountants (AICPA) in the

conduct of their professional affairs.


Allowance for Sampling Risk - ANSWER✔✔-In sampling, a "cushion" for protection

against undetected deviations that is added to the sample deviation rate to arrive at the

upper deviation rate.




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