Audit exam 1 review
Unqualified/unmodified audit report
A "clean" audit report, indicating the auditor's opinion that a client's financial statements are fairly presented in accordance with agreed-upon criteria.
Qualified opinion due to departure from GAAP.
A client has used an inappropriate method of accounting for its pension liability on the balance sheet. The resulting misstatement is moderately material, but the auditor does not consider it to be pervasive. The auditor is unable to convince the client to alter its accounting treatment. The rest of the financial statements are fairly stated in the auditor's opinion. Which kind of audit report would an auditor most likely issue under these circumstances? Standard unqualified opinion. Qualified opinion due to departure from GAAP. Correct: This is the most likely opinion because the financial statements present fairly except for one item which does not have a pervasive effect on the financial statements. Adverse opinion. No opinion at all.
Audit committee
A committee consisting of members of the board of directors, charged with overseeing the entity's system of internal control over financial reporting, internal and external auditors, and the financial reporting process.
Covered Member
A member that is; (a) an individual on the attest engagement team, (b) an individual in a position to influence the attest engagement, or (c) a partner or manager who provides nonattest services to the attest client beginning once he or she provides ten hours of nonattest services to the client within any fiscal year and ending on the later of the date (i) the firm signs the report on the financial statements for the fiscal year during which those services were provided, or (ii) he or she no longer expects to provide ten or more hours of nonattest services to the attest client on a recurring basis.
Close Relative
A parent, sibling, or nondependent child.
Key Position
A position in which an individual; (a) has primary responsibility for significant accounting functions that support material components of the financial statements, (b) has primary responsibility for the preparation of the financial statements, (c) has the ability to exercise influence over the contents of the financial statements, including when the individual is a member of the board of directors or similar governing body, chief executive officer, president, chief financial officer, chief operating officer, general counsel, chief accounting officer, controller, director of internal audit, director of financial reporting, treasurer, or any equivalent position. For purposes of attest engagements not involving financial statements, a key position is one in which an individual is primarily responsible for, or able to influence, the subject matter of the attest engagement, as described above.
Significant risk
A risk of material misstatement that is important enough to require special audit consideration.
Attest
A service when a practitioner is engaged to issue or does issue a report on subject matter, or an assertion about subject matter, that is the responsibility of another party.
Code of Professional Conduct
A set of principles, rules, and interpretations that establish guidance for acceptable behavior for accountants and auditors.
Immediate Family
A spouse, spousal equivalent, or dependent (whether or not related).
Independence
A state of objectivity in fact and in appearance, including the absence of any significant conflicts of interest.
Ethics
A system or code of conduct based on moral duties and obligations that indicates how an individual should behave.
Auditing
A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.
Generally accepted accounting principles (GAAP)
Accounting principles that are generally accepted for the preparation of financial statements in the U.S.
Audit evidence
All the information used by the auditor in arriving at the conclusions on which the audit opinion is based.
Integrated audit
An audit of both financial statements and internal control over financial reporting, provided by the external auditor.
Attest Engagement
An engagement that requires independence as defined in AICPA Professional Standards including financial statement audits, reviews, and examinations of prospective financial information.
Lends credibility to the financial statements.
An independent audit aids in the communication of economic data because the audit Confirms the exact accuracy of management's financial representations. Lends credibility to the financial statements. Correct: An independent audit lends credibility to financial statements because the audit confirms that the financial statements are fairly presented or, alternatively, reports that they are not. Guarantees that financial data are fairly presented. Assures the readers of financial statements that any fraudulent activity has been corrected.
Misstatement
An instance where a financial statement assertion is not in accordance with the criteria against wiich it is audited. A departure from the applicable reporting framework (e.g., GAAP).
Fraud
An intentional act by one or more among management, those charged with governance, employees, or third parties, involving the use of deception that results in a misstatement in the financial statements.
Inform the investor of material misstatements in the audited financial statements that might otherwise have caused the investor to be misled.
An investor is reading the financial statements of the ABC Company and notes that the auditor issued a qualified audit report. The qualified audit report is intended to Assure the investor that the auditor is fully qualified to issue an audit report. Warn the investor that the financial statements contain pervasive errors and thus cannot be relied upon. Correct! Inform the investor of material misstatements in the audited financial statements that might otherwise have caused the investor to be misled. Correct. A qualified audit report indicates that the financial statements "present fairly, except for" an item(s) that is materially misstated and thus may mislead the investor or other user of the financial statements if not corrected. Assure the investor that the disputes over significant accounting issues have been resolved to the auditor's satisfaction.
Public accounting firm
An organization created to provide professional accounting-related services, including auditing.
Financial Interest
An ownership interest in an equity or a debt security issued by an entity, including rights and obligations to acquire such an interest and derivatives directly related to such interest.
confirmation
Audit evidence obtained by the auditor as a direct written response to the auditor from a third party in paper form or by electronic or other medium.
Other information
Audit evidence that includes minutes of meetings; confirmations from third parties; industry analysts' reports; comparable data about competitors (benchmarking); controls manuals; information obtained by the auditor from such audit procedures as inquiry, observation, and inspection; and other information developed by, or available to, the auditor that permits the auditor to reach conclusions through valid reasoning.
Professional skepticism.
Due to the risk of material misstatement, an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of Correct! Professional skepticism. Correct. Auditors should always assume an attitude of professional skepticism in planning and performing an audit. That is to say that they should be aware of potential misstatements and gather competent evidence in all audits. Impartial conservatism. Independent differentialism. Objective cynicism.
Analytical procedures
Evaluations of financial information made through analysis of plausible relationships among both financial and nonfinancial data.
Inspection of records and documents
Examination of internal or external records or documents that are in paper form, electronic form, or other media.
Assertions
Expressed or implied representations by management regarding the recognition, measurement, presentation, and disclosure of information in the financial statements and related disclosures.
Financial statement assertions
Expressed or implied representations by management that are reflected in the financial statement components.
They are not employees of the entity being audited.
External auditors are referred to as "external" because They report directly to users outside of the audited entity. Their offices are not at the entity's place of business. Correct! They are not employees of the entity being audited. Correct. External means that they are independent of and not employees of the entity being audited. They are paid by parties outside of the audited entity.
To plan the audit and determine the scope of audit procedures to be performed.
For what primary purpose does the auditor obtain an understanding of the entity and its environment? To determine the audit fee. To decide which facts about the entity to include in the audit report. To plan the audit and determine the scope of audit procedures to be performed. Correct: This is the primary purpose of obtaining an understanding of the entity and its environment. To limit audit risk to an appropriately high level.
Management has more information about the entity's true financial position than do the absentee owners (i.e. stockholders).
In the context of agency theory, information asymmetry refers to the idea that Information can vary in its reliability. Information can vary in its relevance. Management likely will not act in the best interests of the absentee owners. Correct! Management has more information about the entity's true financial position than do the absentee owners (i.e. stockholders). Correct. Information asymmetry means that all parties do not have access to full information about the entity. Management obviously has more information.
Assurance services
Independent professional services that improve the quality of information, or its context for decision makers.
Audit Evidence
Information used by the auditor in arriving at the conclusions on which the auditor's opinion is based.
Generally Accepted Auditing Standards
Measures of the quality of the auditor's performance.
Future improvements to accomplish the goals of management.
Operational auditing is oriented primarily toward Future improvements to accomplish the goals of management. Correct: This describes the primary orientation or purpose of operational auditing. The accuracy of data reflected in management's financial records. Verification that an entity's financial statements are fairly presented. Past protection provided by existing internal control.
Board of directors
Persons elected by the stockholders of a corporation to oversee management and to direct the affairs of the corporation.
Inspection of tangible assets
Physical examination of the tangible assets.
All of the above.
Preliminary engagement activities include Understanding the client and the client's industry. Determining audit engagement team requirements. Ensuring the independence of the audit team and audit firm. All of the above. Correct: All of the above activities are preliminary engagement activities.
Observation
Process of watching a process or procedure being performed by others.
Business processes
Processes implemented by management to achieve entity objectives, typically organized into the following categories: revenue, purchasing, human resource management, inventory management, and financing.
Business risks
Risks resulting from significant conditions, events, circumstances, and actions or inactions that could adversely affect management's ability to execute its strategies and to achieve its objectives, or through the setting of inappropriate objectives or strategies.
Inquiry
Seeking information of knowledgeable persons, both financial and non-financial, within the entity or outside the entity.
Audit procedures
Specific acts performed by the auditor in gathering evidence to determine if specific assertions are being met.
Standards of the PCAOB
Standards regarding the conduct of financial statement audits for public companies.
Statements on Auditing Standards (SAS)
Statements issued by the American Institute of Certified Public Accountant's Auditing Standards Board.
International Standards on Auditing (ISA)
Statements issued by the International Federation of Accountants' International Auditing and Assurance Standards Board.
Principles Underlying an Audit Performed in Accordance with GAAS
The Auditing Standards Board's replacement of the ten Generally Accepted Auditing Standards organized into four parts; Purpose of an Audit and Premise upon which an Audit is Conducted, Auditor Responsibilities, Audit Performance, and Audit Reporting.
Is a quasi-governmental organization that has legal authority to set auditing standards for audits of public companies.
The Public Company Accounting Oversight Board Is a quasi-governmental organization that has legal authority to set auditing standards for audits of public companies. Correct: This is the correct statement. Is a quasi-governmental organization that has legal authority to set accounting standards for public companies. Is a quasi-governmental organization that has a policy to ignore public comment and input in the process of setting auditing standards. Is a quasi-governmental organization that is independent of the SEC in setting auditing standards.
Oversee the auditors of public companies in order to protect the interests of investors.
The Public Company Accounting Oversight Board's (PCAOB's) primary role is to Conduct audits of governmental entities. Correct! Oversee the auditors of public companies in order to protect the interests of investors. Correct. This is the PCAOB's primary role. Sanction auditors who fail to follow generally accepted auditing standards. Conduct the final review of auditors' work before the auditor's opinion is issued.
Explicitly referred to in the scope paragraph of the auditor's standard report.
The auditing standards used to guide the conduct of the audit are Implicitly referred to in the opening paragraph of the auditor's standard report. Explicitly referred to in the opening paragraph of the auditor's standard report. Implicitly referred to in the scope paragraph of the auditor's standard report. Explicitly referred to in the scope paragraph of the auditor's standard report. Correct: The auditing standards used to guide the conduct of the audit are explicitly referred to in the scope paragraph of the auditors standard report. Implicitly referred to in the opinion paragraph of the auditor's standard report. Explicitly referred to in the opinion paragraph of the auditor's standard report.
Scanning
The auditor's exercise of professional judgement to review accounting data to identify significant or unusual items to test.
Reperformance
The auditor's independent execution of procedures or controls that were originally performed as part of the entity's internal control, either manually or through the use of computer-assisted audit techniques.
Audit documentation (working papers)
The auditor's principal record of the work performed and the basis for the conclusions in the auditor's report. It also facilitates the planning, performance, and supervision of the engagement and provides the basis for the review of the quality of the work by providing the reviewer with written documentation of the evidence supporting the auditor's significant conclusions.
Recalculation
The auditors checking the mathematical accuracy of documents or records either manually or electronically.
Reasonable assurance
The concept that an audit done in accordance with auditing standards may fail to detect a material misstatement in a client's financial statements.
Reasonable assurance
The concept that an audit done in accordance with auditing standards may fail to detect a material misstatement in a client's financial statements. In an auditing context this term has been defined to mean a high but not absolute level of assurance.
Information asymmetry
The concept that the manager generally has more information about the true financial position and results of operations of the entity than the absentee owner does.
Professionalism
The conduct, aims, or qualities that characterize or mark a profession or professional person.
Reliability of evidence
The diagnosticity of evidence - that is, whether the type of evidence can be relied on to signal the true state of the assertion.
Reporting
The end product of the auditor's work, indicating the auditing standards followed and expressing an opinion as to whether an entity's financial statements are fairly presented in accordance with agree-upon criteria.
Risk assessment
The identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP.
Materiality
The magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced. The maximum amount by which the auditor believes the financial statements could be misstated and still not affect the decision of users.
Scope of the audit
The nature, timing, and extent of audit procedures, where nature refers to the type of evidence; timing refers to when the evidence will be gathered; and extent refers to how much of the type of evidence will be evaluated.
Corporate governance
The oversight mechanisms in place to help ensure the proper stewardship over an entity's assets. Management and the board of directors play primary roles, and the independent auditor plays a key facilitating role.
Practice of Public Accounting
The performance for a client, by a member or a member's firm, while holding out as CPA(s), of the professional services of accounting, tax, personal financial planning, litigation support services, and those professional services for which standards are promulgated by bodies designated by AICPA Council.
Risk of material misstatement
The pre-audit risk that the entity's financial statements contain a material misstatement whether caused by error or fraud.
Provide assurance regarding whether the client's financial statements are fairly stated.
The primary purpose of an independent financial statement audit is to Correct! Provide assurance regarding whether the client's financial statements are fairly stated. Correct. This is the primary purpose of the independent audit of financial statements. Examine individual transactions so the auditor may certify as to their validity. Assure the consistent application of correct accounting procedures. Detect and correct fraud.
Accounting records
The records of initial entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers, journal entries, and other adjustments to the financial statements that are not reflected in formal journal entries; and records such as work sheets and spreadsheets supporting cost allocations, computations, reconciliations, and disclosures.
Relevance of evidence
The relationship of audit evidence to the assertion or to the objective of the control being tested.
Control risk
The risk that material misstatements that could occur in an assertion about an account or disclosure and that could be material, either individually or in combination with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control.
Audit Risk
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
Audit risk
The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.
Engagement risk
The risk that the auditor is exposed to financial loss or damage to his or her professional reputation from litigation, adverse publicity, or other events arising in connection with financial statements audited and reported on.
Detection risk
The risk that the procedures performed by the auditor will not reveal a misstatement that exists and that could be material, either individually or in combination with other misstatements.
Risk of material misstatement
The risk that the relevant assertions related to the account balances or disclosures contain misstatements that could be material, either individually or when aggregated with other misstatements, to the financial statements. It represents the combination of inherent risk and control risk.
inherent risk
The susceptibility of an assertion in an account or disclosure to a misstatement due to error or fraud that could be material, either individually or in combination with other misstatements, before consideration of any related controls.
Errors
Unintentional misstatements or omissions of amounts or disclosures.
audit data analytics
Using analysis, modeling, and visualization to discover and analyze patterns, anomalies, and other information in data in the context of an audit.
audit data analytics
Using analysis, modeling, and visualization to discover and analyze patterns, anomalies, and other information in data in the context of the audit.
Illegal acts
Violations of laws or government regulations.
To achieve its objectives, a business formulates strategies and implements processes, which are carried out through business transactions. The entity's information and internal control systems must be designed to ensure that the transactions are properly executed, captured, and processed
Which of the following best describe the relationship between business objectives, strategies, processes, controls, and transactions? To achieve its objectives, a business formulates strategies and implements processes, which are carried out through business transactions. The entity's information and internal control systems must be designed to ensure that the transactions are properly executed, captured, and processed. Correct: This answer gives the correct relationship between business objectives, strategies, processes, controls, and transactions. To achieve its strategies, a business formulates objectives and implements processes, which are carried out through the entity's information and internal control systems. Transactions are conducted to ensure that the processes are properly executed, captured, and processed. To achieve its objectives, a business formulates strategies to implement its transactions, which are carried out through business processes. The entity's information and internal control systems must be designed to ensure that the processes are properly executed, captured, and processed. To achieve its business processes, a business formulates objectives, which are carried out through the entity's strategies. The entity's information and internal control systems must be designed to ensure that the entity's strategies are properly executed, captured, and processed.
Auditing is a type of assurance service.
Which of the following best describes relationships among auditing, attest, and assurance services? Attest is a type of auditing service. Auditing and attest services represent two distinctly different types of services. Auditing is a type of assurance service. Correct: Auditing is a type of attest service which is a type of assurance service. Thus, auditing is a type of assurance service. Assurance is a type of attest service.
Criteria for audit planning and evidence gathering.
Which of the following best describes the general character of the three generally accepted auditing standards classified as standards of field work? The competence, independence, and professional care of persons performing the audit. Criteria for the content of the auditor's report on financial statements and related footnote disclosures. Criteria for audit planning and evidence gathering. Correct: This answer best describes the standards of field work which include planning and supervision, understanding of internal control, and sufficient appropriate evidential matter. The need to maintain an independence of mental attitude in all matters relating to the audit.
Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance is needed to enhance the credibility of the statements.
Which of the following best describes the reason why an independent auditor is often retained to report on financial statements. Management fraud may exist, and it is more likely to be detected by independent auditors than by internal auditors. Different interests may exist between the entity preparing the statements and the persons using the statements, and thus outside assurance is needed to enhance the credibility of the statements. Correct: The principals (owners) of a corporation often have different interests from the agents (management personnel) they hire. A misstatement of account balances may exist, and all misstatements are generally corrected as a result of the independent auditor's work. An entity may have a poorly designed internal control system.
Increased consulting services to audit clients, Enron and other scandals, Sarbanes-Oxley Act, prohibition of most consulting work for audit clients, establishment of PCAOB.
Which of the following best places the events of the last decade in proper sequence? Sarbanes-Oxley Act, increased consulting services to audit clients, Enron and other scandals, prohibition of most consulting work for audit clients, establishment of PCAOB. Increased consulting services to audit clients, Sarbanes-Oxley Act, Enron and other scandals, prohibition of most consulting work for audit clients, establishment of PCAOB. Enron and other scandals, Sarbanes-Oxley Act, increased consulting services to audit clients, prohibition of most consulting work for audit clients, establishment of PCAOB. Increased consulting services to audit clients, Enron and other scandals, Sarbanes-Oxley Act, prohibition of most consulting work for audit clients, establishment of PCAOB. Correct: This is the correct order of events.
C ASB non public company audits and PCAOB public company audits
Which of the following is correct regarding the types of audits over which the ASB and the PCAOB, respectively, have standard-setting authority in the U.S.? a b c Correct: This is the correct division of authority between the ASB and the PCAOB. d
Providing reports on the reliability of financial statements to investors and creditors.
Which of the following is not a part of the role of internal auditors? Assisting the external auditors. Providing reports on the reliability of financial statements to investors and creditors. Correct: Internal auditors cannot provide audit reports for investors and creditors. Only independent CPAs may provide this service. Consulting activities. Operational audits.
Understanding a client's system of internal control can help the auditor assess risk and identify areas where financial statement misstatements might be more likely.
Which of the following is the most important reason for an auditor to gain an understanding of an audit client's system of internal control over financial reporting? Understanding a client's system of internal control can help the auditor assess risk and identify areas where financial statement misstatements might be more likely. Correct: This is the most important reason. Understanding a client's system of internal control can help the auditor make valuable recommendations to management at the end of the engagement. Understanding a client's system of internal control can help the auditor sell consulting services to the client. Understanding a client's system of internal control is not a required part of the audit process.
International Auditing and Assurance Standards Board (IAASB).
Which of the following organizations has assumed the role of issuing international auditing standards? Public Company Accounting Oversight Board (PCAOB). Correct! International Auditing and Assurance Standards Board (IAASB). Correct. The IAASB is the organization with responsibility for issuing international auditing standards. The IAASB standards, while not significantly different from U.S. standards, have not been accepted as authoritative in the U.S. International Accounting Standards Board (IASB). Securities and Exchange Commission (SEC).
Management has the primary responsibility to ensure that the company's financial statements are prepared in accordance with GAAP, and the auditor provides reasonable assurance that the statements are free of material misstatement.
Which of the following statements best describes management's and the external auditor's respective levels of responsibility for a public company's financial statements? Management and the external auditor share equal responsibility for the fairness of the entity's financial statements in accordance with GAAP. Neither management nor the external auditor has significant responsibility for the fairness of the entity's financial statements in accordance with GAAP. Management has the primary responsibility to ensure that the company's financial statements are prepared in accordance with GAAP, and the auditor provides reasonable assurance that the statements are free of material misstatement. Correct: The fair presentation of the financial statements are management's responsibility. The auditor's responsibility is to render an opinion regarding the fair presentation of the financial statements. Management has the primary responsibility to ensure that the company's financial statements are prepared in accordance with GAAP, and the auditor provides a guarantee that the statements are free of material misstatement.
The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather.
Which of the following statements best describes the role of materiality in a financial statement audit? Materiality refers to the "material" from which audit evidence is developed. The higher the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. The level of materiality has little relationship with the amount of evidence that must be gathered in an audit. Correct! The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. Correct. Lower materiality means that more detailed work must be done.
The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather.
Which of the following statements best describes the role of materiality in a financial statement audit? Materiality refers to the "material" from which audit evidence is developed. The higher the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. The lower the level at which the auditor assesses materiality, the greater the amount of evidence the auditor must gather. Correct: This is a correct statement. Selecting a lower (smaller) dollar amount for materiality requires the auditor to search for smaller misstatements on the financial statements, thus increasing the amount of evidence the auditor must gather. The level of materiality has no bearing on the amount of evidence the auditor must gather.
Issuance of a standard unqualified auditor's report indicates that in the auditor's opinion the client's financial statements are fairly presented in accordance with agreed-upon criteria, with no need for the inclusion of qualifying phrases.
Which of the following statements best describes what is meant by an unqualified audit opinion? Issuance of an unqualified auditor's report indicates that in the auditor's opinion the client's financial statements are not fairly enough presented in accordance with agreed-upon criteria to quality for a clean opinion. Issuance of an unqualified auditor's report indicates that the auditor is not qualified to express an opinion that the client's financial statements are fairly presented in accordance with agreed-upon criteria. Issuance of an unqualified auditor's report indicates that the auditor is expressing different opinions on each of the basic financial statements regarding whether the client's financial statements are fairly presented in accordance with agreed-upon criteria. Issuance of a standard unqualified auditor's report indicates that in the auditor's opinion the client's financial statements are fairly presented in accordance with agreed-upon criteria, with no need for the inclusion of qualifying phrases. Correct: This is the only true statement associated with this question.
Materiality in an audit is a matter of professional judgment.
Which of the following statements is most consistent with the concept of materiality in an audit engagement? Materiality depends only on the dollar amount of an item relative to other items in the financial statements. Materiality is determined by reference to specific quantitative guidelines established by the AICPA. Correct! Materiality in an audit is a matter of professional judgment. Correct. Materiality is a matter of professional judgment. It is based on whether the auditor believes a misstatement will mislead a user of the financial statements. Materiality depends on the nature of an item but not on the dollar amount of the item.
Financial statement auditing is a form of attest service but it is not an assurance service.
Which of the following statements relating to attest and assurance services is not correct? Independence is an important attribute of assurance service providers. Assurance services can be performed to improve the quality or context of information for decision makers. Financial statement auditing is a form of attest service but it is not an assurance service. Correct: This is the incorrect statement. Auditing is a type of attest service which is a type of assurance service. In performing an attest service, the CPA determines the correspondence of the subject matter (or an assertion about the subject matter) against criteria that are suitable and available to users.
I only.
Which of the following would be considered an assurance service engagement?I. Expressing an opinion about the reliability of a client's financial statements.II. Reviewing and commenting on a client-prepared business plan. I only. Correct: Number I is the only assurance service engagement, adding value to information and making it more useful to users. II only. Both I and II. Neither I nor II.
Offering an opinion concerning the accuracy of statements made on a client's web site relating to the client's online privacy policies.
Which of the following would best be described as an assurance service provided by a CPA? Working with a client to develop a more efficient method of processing financial transactions. Assisting a client in identifying potential sources of capital for potential acquisitions. Preparing a report representing a client's position during an IRS audit. Correct! Offering an opinion concerning the accuracy of statements made on a client's web site relating to the client's online privacy policies. Correct. This describes a service where the CPA is independent and improves the quality of information for decision makers.
