Term
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Definition
| Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data. |
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Term
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Definition
| A subcommittee of the board of directors that is responsible for the financial reporting and disclosure process. |
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Term
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Definition
| Specific acts performed as the auditor gathers evidence to determine if specific audit objectives are being met. |
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Term
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Definition
| The auditor's plan for the expected conduct, organization, and staffing of the audit. |
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Term
| Closest Reasonable Estimate |
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Definition
| A range of acceptable amounts or a precisely determined point estimate for an estimate (e.g., uncollectible receivables), if that is a better estimate than any other amount. |
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Term
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Definition
| Tests of transactions that both evaluate the effectiveness of controls and detect monetary errors. |
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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
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Definition
| A violation of laws or government regulations. |
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Term
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Definition
| The maximum amount by which the auditor believes the financial statements could be misstated and still not affect the decisions of users. |
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Term
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Definition
| Audit procedures performed to test material misstatements in an account balance, transaction class, or disclosure component of the financial statements. |
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Term
| Substantive Tests of Transactions |
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Definition
| Tests to detect errors or fraud in individual transactions. |
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Term
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Definition
| Audit procedures performed to test the operating effectiveness of controls in preventing, or detecting and correcting, material misstatements at the relevant assertion level. |
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Term
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Definition
| Substantive tests that concentrate on the details of items contained in the account balance and disclosure. |
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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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