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16 Cards in this Set

  • Front
  • Back
agreements that the entity will hold to a fixed set of conditions, such as the purchase or sale of merchandise at a stated price at a future date, regardless of what happens to profits or to the economy as a whole.
completing the audit checklist
a reminder to the auditor of aspects of the audit that may have been overlooked.
contingent liability
a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place.
dual-dated audit report
the use of one audit report date for normal subsequent events and a later date for one or more subsequent events that come to the auditor’s attention after the field work has been completed.
financial statement disclosure checklist
a questionnaire that reminds the auditor of disclosure problems commonly encountered in audits and that facilitates final review of the entire audit by an independent partner.
independent review
a review of the financial statements and the entire set of audit files by a completely independent reviewer to whome the audit team must justify the evidence accumulated and the conclusions reached.
inquiry of the client's attorneys
a letter from the client requesting that legal counsel inform the auditor of pending litigation or any othe rinformatio ninvolving legal counsel that is relevant to financial statement disclosure.
letter of representation
a written communication from the client to the auditor formalizing statements that the client ahs made about matter pertinent to the audit.
management letter
an optional letter written by the auditor to a client’s management containing the audit’r recommendations for improving any aspect of the client’s business.
other information included in annual reports
information that is not a part of the financial statements but is published with them; auditors must read this information for inconsistencies with the financial statements.
review for subsequent events
the auditing procedures performed by auditors to identify and evaluate subsequent events; also known as a post-balance-sheet-review.
review of audit documentation
a review of the completed audit files by another member of the audit firm to ensure quality and counteract bias.
subsequent discovery of facts
auditor discovery that the financial statements are materially misstated after they have been issued.
subsequent events
transactions and other pertinent events that occurred after the balance sheet date that affect the fair presentation or disclosure of the statements being audited.
unadjusted misstatement audit schedule
a summary of immaterial misstatements not adjusted at the time they were found, used to help the auditor assess whether the combined amount is material; also known as a summary of possible misstatements.
unassertive claim
a potential legal claim against a client where the condition for a claim exists but no claim has been filed.