Term
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Definition
| A legal standard requiring that the auditor perform his or her professional services with the same degree of skill, knowledge, and judgment posessed by other members of the same profession. |
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Term
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Definition
| A letter that formalizes the contract between the auditor and the client and outlines the responsibilities of both parties. |
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Term
| Generally Accepted Auditing Standards |
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Definition
| Measures of the quality of the auditor's performance. |
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Term
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Definition
| An extreme, flagrant, or reckless departure from professional standards of due care. |
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Term
| Joint and Several Liability |
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Definition
| The auditor can be responsible for the entire loss even if other parties contributed to the loss. |
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Term
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Definition
| An absence of reasonable or due care in the conduct of an engagement. |
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Term
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Definition
| A party's contractual or fiduciary relationship with the accountant. |
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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
| A term that implies some risk that a material misstatement could be present in the financial statements without the auditor detecting it. |
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Term
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Definition
| Acting with intent to deceive, defraud, or with knowledge of a false representation. |
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Term
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Definition
| A wrongful act other than a breach of contract for which civil action may be taken. |
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