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20 Cards in this Set
- Front
- Back
analytical procedures
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the reasonableness tests used to gain an understanding of financial statement accounts and relationships.
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audit documentation
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the written record of the basis for the auditor’s conclusions that provides the support for the auditor's representations, whether those representations are contained in the auditor's report or otherwise.
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audit plan
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a comprehensive list of specific audit procedures that the audit team needs to perform to gather sufficient appropriate evidence on which to base their opinions on the financial statements
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audit trail
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is a chain of evidence provided through coding, cross-references, and documentation connecting account balances and other summary results with the original transaction source documents
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Continuing audit files (permanent files)
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contain info of continuing audit significance for many years of the same client
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engagement letter
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a letter from the public accounting firm to the management of an engagement client setting forth the terms of the engagement
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Form 8-k
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The "special events report" filled with the SEC whenever certain significant corporate events occur such as changes in control, legal proceedings,and changes of auditor
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independence in appearance
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auditors mental attitude and impartiality with respect to the client
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interim audit work
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procedures performed several weeks or months before the balance sheet date.
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lead schedule
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a summary of the accounts in or components of an account group.
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materiality
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refers to an amount or transaction that would influence the decisions of users.
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Planning memorandum
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documentsummarizing the preliminary analytical procedures and the materiality assessment with specific directions about the effect on the audit
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predecessor auditor
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the audit firm that has been terminated or voluntarily withdrawn from an audit engagement (whether the audit has been completed or not)
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quality assurance partner
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the second audit partner on the audit team as required for audits of financial statements filed with the SEC and who reviews the audit teams work in critical audit areas ( those of potential risk)
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specialists
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persons skilled in field other than accounting and auditing, such as appraisers, attorneys, engineers etc., and who are not members of the audit team and are unrelated to the company being audited.
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substantive audit plan
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audit procedures to obtain evidence about managers assertions.
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termination letter
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documentation provided to former clients dealing with the subject of future services, in particular 1) access to audit documentation by a successor auditor, 2) reissurance of the auditors report when required for SEC reporting or comparative financial reporting and 3) fee arrangements for such future services.the termination letter can also contain a report of teh auditors understanding of the circumstances of termination (eg.. diagreements about accounting principles and audit procedures, fees, or other conflicts)
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tracing
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taking a source document and following it forward to accounts completeness assertion. Using tracing, an auditor can decide whether all events were recorded and complement the evidence obtaining by vouching.
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vouching
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which is the following of the path from balance to journal to source document, supports existence and occurrence assertions but not completeness assertion. Vouching of documents can help auditors decide whether all recorded data are adequately supported but vouching does not provide evidence that all events were recorded
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year-end audit work
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procedures preformed shortly before and after the balance sheet date
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