+
Related Flashcards
Related Topics
Cards In This Set
| Front | Back |
|
In late 2001 through 2002, the accounting profession faced a "crisis of credibility." Describe the events that led up to the crisis.
|
Enron
WorldCom |
|
Define assurance services. What are two distinct types?
|
Assurance services: services that enhance the quality of information/content for decision makers.2 types: 1) Increase reliability of information 2) Put information into context for decision making.
|
|
What is the most common type of attest engagement? What is most frequently being "asserted" by management on this type of engagement?
|
Financial forecasts, internal control, compliance with laws and regulations and advertising claims. Includes reports of their effectiveness of internal control.
|
|
What is the principal use and significance of an audit report to a large corporation with securities listed on a stock exchange? To a small family-owned enterprise?
|
Large: To give an accurate picture to current and future investors.Small: To receive loans from banks.
|
|
The overall risk of the investment in a business includes both business risk and information risk. Contrast these two types of risk. Which one is most directly affected by the auditors?
|
Two types of risk: Business and Information
Business - Risk associated with survival and profitability Information - Risk of inaccurate information (most directly affected by the auditors) |
