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19 Cards in this Set
- Front
- Back
Assurance |
The ledning of credibility to information |
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Assurance services |
independent professional services that improve the quality of information or its ontext for decsiosn makers |
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attestation engagement |
the provision of an opioin on subject matter or an assertion about the subject matter that is the responsibilit of another party |
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attestation |
the lending of credibility to assertions made by a third party |
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auditing |
the systematic porcess of objectively obaitning and evaluatin evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assterions and established criteria an dcommunicaitng the results ot interested users. |
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business risk |
the risk that an entitiy will fial to meet its objectives. if the company filrs to meet its objectives enough times, the company may ultimatly fail |
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completeness |
all of the transactions, events,assets,liailites,equity interest, and other disclosures that shouldhave been recorded in the financial statmetns have been recorded |
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cutoff |
refers to accounting for revenue epens and other reanasection in the poreopr period. the cutoff date generally refers to the audit clintes year end balnace sheet date. |
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existence |
all assets liabilites and equity interst do actually exists |
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financial reporting |
process of providing statmetns of financial position(balance sheets), resluts of operations,(income statements,) changes in cash flows(staemtn of cash flow), and accompanyin disclousres(footnotes) to outside deciosn makers who do not have access to managmeents internal sources of informatoin A companies accontant under the direcito of its managment perorm this funciton |
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infomation risk |
the probability that the infomraiton circulated bt a company iwll be false or misleading |
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internal auditing |
an indpendent objectibe assurance and consultin acitivity desinged to add value and improve an orgnaizaiotn operations |
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occurence |
all of the tranacstion and events that habe been recorded are alid, pertain to the entity and ahve acutally taken place |
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operational auditing |
the study of busienss operaiotn for the purpose of making recommendaitons about the efficient use of reosuce, effecive achivement of vusiness objectives, and compinace with company policies |
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presentaiton and disclousre |
management assertion that all transeaction and events have been presented correctly and that ll relevant information has benn discloed to financial staemtn euser, usually in the footnore to the financial statmetns |
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professional skeptisism |
define din the professional auditing standarts as having an attidtue that includes a quesitoning midn an a critical assessment of evidence. Esssentially its an auditors tendency to not eileive managemtns assetion witout corroboration |
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right and obligations |
the entity is entitled to all rights of the assets, the liabilites are the legal respnsibilti of the entity an dall of the dislcoed evnets and transactions pertian to theentitiy |
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substantial equivalency |
the porcess through wich cpas licsences in one state can practice in another state |
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valuation and allocaiton |
all assets, liabliteis, and equity interests have been valued in accodance with the relvant fiancial reporting standards. (GAAP) and are listed in the finanlcial statmetns at the poroper amount and any resulting valuation adjustments have been appropiraltey recorded in the financial statmetns. |