BUS-A 100 Chapter Notes - Chapter 8: Public Company Accounting Oversight Board, Whistleblower, Financial Audit
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BUS-A 100 Full Course Notes
Verified Note
5 documents
Document Summary
Materiality - relates to the potential impact that a misstatement could have on the financial statements big enough to change opinions of stockholders or others. Audit risk - possibility that the auditors fail to realize there is a material misstatement. Sampling - less than 100% of the account balance or class of transactions is verified by the auditors. Unmodified/clean - best audit, auditors have found the financial statements to be in accordance with. 302 sarbox - requires manage to sign a statement as to the effectiveness of the company"s internal controls. 404 - requires auditors to give their opinion on the internal controls of the company whistle blower - provides protection to encourage employees to report wrongdoings. Control environment: risk assessment, control activities, information & communication, monitoring. Review - service provided by cpas to give the reader limited assurance, less than with an audit, weaker than an audit: check management representations, company is applying generally accepted accounting principles gaap.
