Term
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Definition
| Evaluations of financial information made by a study of plausible relationships among both financial and non financial data. |
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Term
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Definition
| Specific acts preformed by the auditor in gathering evidence to determine if specific assertions are being met. |
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Term
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Definition
| The risk that the auditor may unknowingly fail to appropriately modify the opinion on materially misstated financial statements. |
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Term
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Definition
| Risks resulting from significant conditions, events, circumstances, and actions or in-actions 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
| Closest Reasonable Estimate |
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Definition
| A range of acceptable amounts or precisely determined point estimate for an estimate (e.g., un-collectible receivables), if that is a better estimate that any other amount. |
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Term
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Definition
| The risk that material misstatements that could occur will not be prevented, or detected and corrected, by internal controls. |
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Term
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Definition
| The risk that the auditor will not detect a material misstatement that exists in the financial statements. |
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Term
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Definition
| The risk that the auditor is exposed 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 to material misstatement, assuming no related controls. |
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Term
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Definition
| The magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced. |
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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 auditor should not assume that the 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 presented 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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Term
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Definition
| The amount of the planning materiality that is allocated to a financial statement account. |
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