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14 Cards in this Set
- Front
- Back
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Analytical Procedures
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Use of comparisons and relationships to assess whether account balances or other data appear reasonable
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Balance-Related Audit Objectives
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9 Audit Objs. that must be met before the auditor can conclude that any given account balance is fairly stated; existence, completeness, accuracy, cutoff
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Cycle Approach
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A method of dividing an audit by keeping closely related types of transactions and account balances in the same segment
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Error
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An unintentional misstatement of the financial statements
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Fraud
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An intentinoal misstatement of the financial statements
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Fraudulent Financial Reporting
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Intentional misstatements or omissions of amounts or disclosures in financial statements to deceive users
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Illegal Acts
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Violations of laws or government regulations other than fraud
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Management Assertions
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Implied or expressed representations by management about classes of transactions and related accounts in the financial statements
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Misappropriation of Assets
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A fraud involving the theft of an entity's assets
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Phases of the Audit Process
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4 Parts: Plan + design audit approach; Perform tests of controls + subst. tests of trans.; Perform analy. proced.+ tests of details; complete audit+issue Report
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Substantive Tests of Transactions
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Audit procedures testing for monetary misstatements to determine whether the 6 trans. related audit objs. have been satisfied for each class of trn.
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Tests of Controls
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Audit procedures to test the effectiveness of controls in support of a reduced assessed control risk
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Tests of Details of Balances
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Audit procedures testing for monetary misstatements to determine whether the 9 Bal. Related audit objs. have been satisfied/sig. account balance
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Transaction-Related Audit Objectives
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6 Audit Objs. that must be met before the auditor can conclude that the total for any class of trans. is fairly stated:exist. comp., acc., classif., timing
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