Term
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Definition
| Controls that apply to the processing of specific computer applications and are part of the computer programs used in the accounting system. |
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Term
| Computer-Assisted Audit Techniques (CAATs) |
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Definition
| Computer programs that allow auditors to test computer files and databases. |
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Term
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Definition
| The policies and procedures that help ensure that management's directives are carried out. |
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Term
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Definition
| A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. |
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Term
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Definition
| The tone of an organization, which reflects the overall attitude, awareness, and actions of the board of directors, management, and owners influencing the control consciousness of its people. |
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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
| Electronic (Internet) Commerce |
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Definition
| Business transactions between individuals and organizations that occur without paper documents, using computers and telecommunication networks. |
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Term
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Definition
| Controls that relate to the overall information processing environment and have a pervasive effect on the entity's computer operations. |
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Term
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Definition
| The method by which an entity's board of directors, management, and other personnel provide reasonable assurance about the achievement of objectives in the following categories: (1) reliability of financial reporting, (2) effectiveness and efficiency of operations, and (3) compliance with applicable lawes and regulations. |
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Term
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Definition
| A deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. |
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Term
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Definition
| A process that assesses the quality of internal control performance over time. |
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Term
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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. |
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Term
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Definition
| A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. |
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Term
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Definition
| The auditor's decision not to rely on the entity's controls and to audit the related financial statement accounts by relying more on substantive procedures. |
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Term
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Definition
| A transaction being traced by an auditor from origination through the entity's information system until it is reflected in the entity's financial reports. It encompasses the entire process of initiating, authorizing, recording, processing, and reporting individual transactions and controls for each of the significant processes identified. |
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