Let F q (q = p r ) be a finite field. In this paper the number of irreducible polynomials of degree m in F q [x] with prescribed trace and norm coefficients is calculated in certain special cases and a general bound for that number is obtained improving the bound by Wan if m is small compared to q. As a corollary, sharp bounds are obtained for the number of elements in F q 3 with prescribed trace and norm over F q improving the estimates by Katz in this special case. Moreover, a characterization of Kloosterman sums over F 2 r divisible by three is given generalizing the earlier result by Charpin, Helleseth, and Zinoviev obtained only in the case r odd. Finally, a new simple proof for the value distribution of a Kloosterman sum over the field F 3 r , first proved by Katz and Livne, is given.