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19 Cards in this Set

  • Front
  • Back

Assurance

The ledning of credibility to information

Assurance services

independent professional services that improve the quality of information or its ontext for decsiosn makers

attestation engagement

the provision of an opioin on subject matter or an assertion about the subject matter that is the responsibilit of another party

attestation

the lending of credibility to assertions made by a third party

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.

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

completeness

all of the transactions, events,assets,liailites,equity interest, and other disclosures that shouldhave been recorded in the financial statmetns have been recorded

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.

existence

all assets liabilites and equity interst do actually exists

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

infomation risk

the probability that the infomraiton circulated bt a company iwll be false or misleading

internal auditing

an indpendent objectibe assurance and consultin acitivity desinged to add value and improve an orgnaizaiotn operations

occurence

all of the tranacstion and events that habe been recorded are alid, pertain to the entity and ahve acutally taken place

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

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

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

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

substantial equivalency

the porcess through wich cpas licsences in one state can practice in another state

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.