Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
14 Cards in this Set
- Front
- Back
|
analytical procedures |
evaluations of financial information through analysis of plausible relationships among both financial and non financial data |
|
|
audit committee |
a subcommittee of the board of directors that is responsible for the financial reporting and disclosure process |
|
|
audit procedures |
specific acts performed as the auditor gathers evidence to determine if specific audit objectives are being met |
|
|
audit strategy |
the auditor's plan for the expected conduct, organization, and staffing of the audit |
|
|
closest reasonable estimate |
a range of acceptable amounts or a precisely determined point estimate for an estimate (e.g., uncollectible receivables), if that is a better estimate than any other amount |
|
|
dual-purpose tests |
test of transactions that both evaluate the effectiveness of controls and detect monetary errors |
|
|
engagement letter |
a letter that formalizes the contract between the auditor and the entity and outlines the responsibilities of both parties |
|
|
illegal act |
a violation of laws or government regulations |
|
|
overall materiality |
the max amount by which the auditor believes the financial statements could be misstated and still not affect the decision of users
|
|
|
substantive procedures |
audit procedures performed to test material misstatements in an account balance or disclosure component of the financial statements |
|
|
substantive tests of transactions |
tests to detect errors or fraud in individual transactions |
|
|
test of controls |
audit procedures performed to test the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the relevant assertion level |
|
|
tests of details |
substantive tests that concentrate on the details of items contained in the account balance and disclosure |
|
|
tolerable misstatement (performance materiality) |
the amount of the overall materiality that is used to establish a scope for the audit procedures for the individual account balance or disclosures |
