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9 Cards in this Set
- Front
- Back
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assessment inquiry
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inquiry to corroborate or contradict prior information obtained
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earnings management
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deliberate actions taken by management to meet earnings objectives.
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fraud risk factors
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entity factors that increase the risk of fraud.
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fraud triangle
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represents the three conditions of fraud: incentives/pressures, opportunities, and attitudes/rationalization.
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income smoothing
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form of earnings management in which revenues and expenses are shifted between periods to reduce fluctuations in earnings.
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informational inquiry
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inquiry to obtain information about facts and details the auditor does not have.
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interrogative inquiry
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inquiry used to determine if the interviewee is being deceptive or purposefully omitting disclosure of key knowledge of facts, events, or circumstances.
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premature revenue recognition
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recognition of revenue before GAAP requirements for recording revenue have been met.
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professional skepticism
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an attitude of the auditor that neither assumes management is dishonest nor assumes unquestioned honesty.
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