AACSB: Analytic
AICPA: BB Industry
AICPA: FN Research
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-06 Describe the audits and auditors in governmental; internal; and operational auditing.
Source: Original
Topic: Other Kinds of Engagements and Information Professionals
AICPA: BB Industry
AICPA: FN Research
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 01-06 Describe the audits and auditors in governmental; internal; and operational auditing.
Source: Original
Topic: Other Kinds of Engagements and Information Professionals
| 60. | What is information risk? What is business risk? Information risk is the risk that financial statements will be materially false or misleading. Business risk is the risk an entity will fail to meet its objectives. |
| AACSB: Analytic AICPA: BB Industry AICPA: FN Research Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Define information risk and explain how the financial statement auditing process helps to reduce this risk; thereby reducing the cost of capital for a company. Source: Original Topic: User Demand for Reliable Information |
| 61. | What are the four basic requirements for becoming a CPA? Education, the CPA Examination, experience, and a state certificate. |
| AACSB: Analytic AICPA: BB Industry AICPA: FN Research Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-07 List and explain the requirements for becoming a certified public accountant (CPA) and other certifications available to an accounting professional. Source: Original Topic: Become a Professional and Get Certified! |
| 62. | Define assurance, attestation, and auditing in the context of "lending credibility." Assurance is the "lending of credibility" to information. Attestation is the "lending of credibility" to assertions made by a third party. Auditing is the "lending of credibility" to financial statements. |
| AACSB: Analytic AICPA: BB Industry AICPA: FN Research Blooms: Understand Difficulty: 2 Medium Learning Objective: 01-02 Define and contrast financial statement auditing; attestation; and assurance services. Source: Original Topic: Auditing, Attestation, and Assurance Services |