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13 Cards in this Set

  • Front
  • Back
Internal Control
Process designed to provide reasonable assurance regarding the achievmt. of mgmt's objs of: reliab. of fin. reporting; eff+eff of ops; abiding by laws
Control Environment
The actions, policies, and procedures that reflect the overall attitude of top mgmt., directors, and owners of an entity about IC + importance
Risk Assessment
Mgmt's ID and analysis of risks relevant to the preparation of financial statements in accordance w/GAAP
Control Activities
Policies and procedures, in addition to those included in the other four components of IC, that help ensure necess. actions are taken to asses. risk in objs
Management's ongoing and periodic assessment of the quality of IC performance to determine that controls are operating as intended + mod.
A written description of a client's IC, including the origin, processing, and disposition of documents + records + relevant control proc.
A diagrammatic representation of the client's documents and records and the sequence in which they are processed
Internal Control Questionnaire
A series of questions about the controls in each audit area used as a means of indicating to the auditor aspects of IC that may be inadequate
Assessment of Control Risk
A measure of the auditor's expectations that IC will neither prevent mat. mist. from occurring nor detect+correct them if ocrd.
Control Risk Matrix
A methodology used to help the auditor assess control risk by matching key IC + IC weaknesses w/trans.-related audit objectives
Significant Deficiency
An IC deficiency that could adversely affect the entity's ability to initiate, record, process, and report finan. data consistent w/mgmts. assert.of FS
Material Weakness
A sig. deficiency in IC that, by itself, or in combo. w/ other sig. defic; results in more than a remote likelihood that a material mistmt./FS w/not detct.
Tests of Controls
Audit procedures to test the operating effectiveness of controls in support of reduced assessed control risk