Term
|
Definition
| Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. |
|
|
Term
| Analytical Procedures Risk |
|
Definition
| The risk that substantive analytical procedures will fail to detect material misstatements |
|
|
Term
|
Definition
| Specific acts performed by the auditor in gathering evidence to determine if specific assertations are being met |
|
|
Term
|
Definition
| The risk that the auditor may fail to modify the opinion on materially misstated financial statements |
|
|
Term
|
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. |
|
|
Term
| Closest Reasonable Estimate |
|
Definition
| A range of acceptable amounts or a precisely determined point for an estimate (e.g., uncollectible receivables), if that is a better estimate than any other amount. |
|
|
Term
|
Definition
| The risk that material misstatements that could occur will not be prevented or detected by internal controls |
|
|
Term
|
Definition
| The risk that the auditor will not detect a material misstatement that exists in the financial statements. |
|
|
Term
|
Definition
| The risk that the auditor's exposure to loss or injury to professional practice from litigation, adverse publicity, or other events arising in connection with financial statements audited and reported on. |
|
|
Term
|
Definition
| Unintentional misstatements or omissions of amounts or disclosures. |
|
|
Term
|
Definition
| The amount of misstatement that the auditor believes exists in the population. |
|
|
Term
|
Definition
| Intentional misstatements that can be classified as fraudulent financial reporting and misappropriate of assets. |
|
|
Term
|
Definition
| The susceptibility of an assertion to material misstatement, assuming no related controls. |
|
|
Term
|
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. |
|
|
Term
|
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. |
|
|
Term
|
Definition
| The identification, analysis, and management of risks relevant to the preparation of financial statements that are fairly presented in conformity with GAAP |
|
|
Term
| Risk of Material Misstatement |
|
Definition
| The auditor's combined assessment of inherent risk and control risk. |
|
|
Term
|
Definition
| The risk that tests of details will not detect material misstatements that were not detected by internal controls or substantive analytical procedures |
|
|
Term
|
Definition
| The amount of the planning materiality that is allocated to a financial statement account |
|
|
