Term
|
Definition
| Evaluations of financial information made through analysis of plausible relationships among both financial and nonfinancial data. |
|
|
Term
|
Definition
| Expressed or implied representations by management that are reflected in the financial statement components. |
|
|
Term
|
Definition
| The process of obtaining and evaluating direct communication from a third party in response to a request for information about a particular item affecting financial statement assertions. |
|
|
Term
|
Definition
| The auditor's decision to rely on the entity's controls, test those controls, and reduce the direct tests of the financial statement accounts. |
|
|
Term
| Substantive Tests of Transactions |
|
Definition
| Tests to detect errors or fraud in individual transactions. |
|
|
Term
|
Definition
| Audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting material misstatements at the relevant assertion level. |
|
|
Term
| Tests of Details of Account Balances and Disclosures |
|
Definition
| Substantive tests that concentrate on the details of items contained in the account balance and disclosure. |
|
|
