Term
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Definition
| Evaluations of financial information made through analysis of plausible relationships among both financial and nonfinancial data. |
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Term
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Definition
| Specific acts performed by the auditor in gathering evidence to determine if specific assertations are being met. |
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Term
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Definition
| The risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. |
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Term
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Definition
| Risks resulting from significant conditions, events, circumstances, and actions or inactions that could adversely affect management's ability to execute its strategies and to achieve its objectives, or through the setting of inappropriate objectives or strategies. |
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Term
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Definition
| The risk that a misstatement that could occur in an assertion about a class of transaction, account balance, or disclosure and that could be material, either individually or when aggregated with other misstatements, will not be prevented, or detected and corrected, on a timely basis by the entity's internal control. |
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Term
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Definition
| The risk that the procedures performed by the auditor to reduce audit risk to an acceptably low level will not detect a misstatement that exists and that could be material, either individually or when aggregated with other misstatements. |
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Term
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Definition
| The risk that the auditor is exposes to financial loss or damage to his or her professional reputation from litigation, adverse publicity, or other events arising in connection with financial statements audited and reported on. |
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Term
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Definition
| Unintentional misstatements or omissions of amounts or disclosures. |
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Term
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Definition
| Intentional misstatements that can be classified as fraudulent financial reporting and/or misappropriation of assets. |
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Term
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Definition
| The susceptibility of an assertion about a class of transaction, account balance, or disclosure to a misstatement that could be material, either individually or when aggregated with other misstatements, before consideration of any related controls. |
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Term
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Definition
| An attitude that includes a questioning mind and a critical assessment of audit evidence. The auditor should not assume that management is either honest or dishonest. |
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Term
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Definition
| The identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly represented in conformity with GAAP. |
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Term
| Risk of Material Misstatement |
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Definition
| The auditor's combined assessment of inherent risk and control risk. |
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Term
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Definition
| Refers to the nature, timing, and extent of audit procedures, where nature refers to the type of evidence; timing refers to when the evidence will be gathered; and extent refers to how much of the type of evidence will be evaluated. |
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Term
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Definition
| A risk of material misstatement that is important enough to require special audit consideration. |
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