Acc 550 exam - Study guides, Class notes & Summaries

Purpose of Audit Documentation - Biggest Reason - ANSWER evidence of the auditor's basis for a conclusion evidence the audit was planned and performed in accordance with GAAS & applicable legal & regulatory requirements Additional purposes of audit documentation - ANSWER assist in planning and performing engagement assist in engagement review and supervision demonstrate accountability for work performed retain record matters for future audits enable quality control reviews enable exte...

A306 FINAL EXAM Questions With Verified Answers. An effective performance evaluation will do what? - answerReward behavior that benefits the company and will include multiple performance measures A company provides the following info:Material price variance: 800F, Material spending variance: 250FBudgeted material/unit: 1.5 ft, Budgeted material price: $6/ftActual units produced: 100, Budgeted units produced: 120 What is the material quantity variance? - answer$550 U SQA: 100units*1.5ft =...

the omission or misstatement of an item in a financial report is material if, in the light of surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have be been changed or influenced by the inclusion or correction of the item - ANSWER What is materiality? a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly al...

What company's CEO was named Business Week's CEO of the year for 2001? - ANSWER TYCO CEO, DENNIS KOZLOWSKI What CEO said, "We are the good guys. We are on the side of angels"? - ANSWER Jeffrey Skilling, Enron What companies' CFOs were named CFO of the year for 1999, 2000, and 2001 by CFO magazine? - ANSWER Enron, Worldcom, Tyco

which of the following audit committee activities is of the greatest benefit to internal audit activity? a. review and endorsement of all internal auditing engagement communications prior to their release b. assurance that the external auditor will rely on the work of the internal audit activity whenever possible c. review and approval of engagement work programs d. determine whether scope limitations impede the ability of the internal audit activity to execute its responsibilities - ANS...

planning the audit, how does materiality play a role? - ANSWER materiality is a matter of professional judgement, determine materiality for financial statements as a whole, provides basis for: nature and extent of risk assessment procedures, ID risks of material misstatement, determine procedures how to determine materiality - ANSWER start with a firm provided benchmark, adjust for qualitative concerns

Why is the PCAOB's audit documentation retention requirement longer than AICPA & ISA? - ANSWER It takes longer for litigation to form for public companies, so PCAOB wanted the longer time frame in order to have the documentation when needed. Report Release Date - ANSWER date auditor grants permission to use the auditor's report

ACC 290 Sample Final Exam 1) Which financial statement is used to determine cash generated from operations? Answer: Statement of cash flows 2) In terms of sequence, in what order must the four basic financial statements be prepared? Answer: Income statement, capital statement, balance sheet, and statement of cash flows 3. In classifying transactions, which of the following is true in regard to assets? Answer: Normal balances and increases are debits 4. An increase in an expense account mu...