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11 Cards in this Set
- Front
- Back
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Acceptable Audit Risk
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A measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is complete+unqual. opin.
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Budgets
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Written records of the client's expectations for the period; a comparison of budgets with actual results may indicate whether or not misstmts. likely
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Bylaws
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The rules + procedures adopted by a corp's stockholders, including the corp's fiscal year and the duties + powers of its officers
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Client Business Risk
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The risk that the client will fail to achieve its objectives related to: reliability of reporting; effectiveness + eff. of ops; compliance with laws
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Corporate Charter
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A legal doc. granted by the state in which a Co. is inc. that recognizes a Co. as a separate entity; includes name of the the Corp, date, stock
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Corporate Minutes
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Official record of the meetings of a corporation's BOD and stockholders, in which corporate issues, such as the dec. of dividends + app. of contracts
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Engagement Letter
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An agreement between the CPA firm and the client as to the terms of the engagement for the conduct of the audit and related services
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Inherent Risk
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A measure of the auditor's assessment of the likelihood that there are material misstatements in a segment before considering eff. of I.C.
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Initial Audit Planning
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Involves deciding whether to accept or continue doing the audit for the client, idfy. the client's reasons for the audit, obt. eng. letter, select staff
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Related Party
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Affiliated company, principal owner of the client company, or any other party with which the client deals, where one of the parties can influence mgmt/pcy.
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Related Party Transaction
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Any transaction between the client and a related party
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