Reducing Info Risk

Front 1

Auditing

Back 1

accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the info and est. criteria. Auditing should be done by a competent, independent person.

Front 2

Evidence

Back 2

1. Oral testimony of client
2. Written communication with outsiders
3. Observations by the auditor
4. Electronic and other data about transactions

Front 3

Auditing vs Accounting

Back 3

Accounting = recording, classifying, and summarizing economic events in a logical manner for the purpose of producing financials for business decisions. Auditing = understanding GAAP and making sure, through accumulation of evidence, that client adhered to GAAP

Front 4

Information Risk

Back 4

Possibility that the info upon which the business risk decision was made was inaccurate, usually due to inaccurate financial statements.

Front 5

Causes of Information Risk

Back 5

1. Remoteness of info
2. Biases and motives of provider
3. Voluminous data
4. Comples exchange transactions

Front 6

Reducing Information Risk

Back 6

1. User verifies info (examine onsite)
2. User shares info risk w/ management
3. Audited financial statements provided

Front 7

Attestation Services (definition)

Back 7

CPA firm issues report on reliability of an assertion made by another party

Front 8

Attestation Services (five categories)

Back 8

1. audit of historical financials
2. attestation on internal controls over financial reporting
3. reveiw of historical financials
4. attestation svcs on information technology
5. other (broad range)

Front 9

Operational Audit

Back 9

Evaluates the efficiency and effectiveness of any part of an organization's operating procedures and methods.

Front 10

Compliance Audit

Back 10

Conducted to determine whether the client is following specific procedures, rules or regulations set by a higher authority.

Front 11

Financial Statement Audit

Back 11

Conducted to determine whether the financial statements are stated in accordance w/ GAAP