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14 Cards in this Set

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