Term
| persuasiveness of evidence |
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Definition
| the two determinants are appropriateness and sufficiency; the degree to which the auditor is convinced that the evidence supports the audit opinion |
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Term
| appropriateness of evidence |
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Definition
| a measure of the quality of evidence; relevant and reliable in meeting audit objectives |
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Term
| Factors to consider before accepting audit client |
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Definition
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Term
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Definition
a measure of how willing the auditor is to accept that the financial statements may be materially misstated after the audit is completed |
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Term
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Definition
the risk that audit evidence for a segment will fail to detect misstatements exceeding tolerable misstatement |
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Term
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Definition
measures the auditor's assessment of likelihood that there are material misstatements in a segment before considering the effectiveness of internal control |
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Term
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Definition
| measures the auditor's assessment of whether misstatements exceeding a tolerable amount in a segment will be prevented or detected on a timely basis by the client's internal controls |
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Term
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Definition
| the materiality allocated to any given balance; used in audit planning |
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Term
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Definition
the actions, policies, and procedures that reflect the overall attitudes of top management, directors, and owners of an entity about internal control and its importance to the entity |
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Definition
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Term
| 10 Generally Accepted Auditing Standards (GAAS) |
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Definition
T - training and proficiency
I - independence
P - professional care
P - planning and supervision
I - internal control
E - audit evidence
G - generally accepted accounting principles
O - opinion
D - disclosures
C - consistency |
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Term
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Definition
| the auditor must have adequate technical training and proficiency to perform audit |
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Term
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Definition
| the auditor must maintain independence in mental attitude in all matters relating to the audit |
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Term
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Definition
| the auditor must exercise due professional care in the performance of the audit and the preparation of the report |
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Term
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Definition
| the auditor must adequately plan the work and must properly supervise any assistants |
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Term
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Definition
| the auditor must obtain a sufficient understanding of the entity and its environment, including internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, to design the nature, timing and extent of further audit procedures |
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Term
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Definition
| the auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit |
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Term
| Generally Accepted Accounting Principles |
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Definition
| the auditor must state in the auditor's report whether the financial statements are presented in accordance with GAAP |
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Term
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Definition
| when the auditor determines that informative disclosures are not adequate, the auditor must so state in the auditor's report |
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Term
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Definition
| the auditor must identify in the auditor's report those circumstances in which such principles have not been consistently observed in the current period in relation to the previous period |
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Term
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Definition
| the auditor must either express an opinion regarding the financial statements taken as a whole or state that an opinion cannot be expressed, in the auditor's report |
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Term
| 4 Concepts of audit evidence |
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Definition
| the nature, competence, sufficiency, and evaluation of the audit evidence |
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Term
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Definition
| the form of evidence looked at during the audit (accounting documents, meeting minutes, etc.) |
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Term
| Competence of audit evidence |
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Definition
| the quality of the audit evidence, regardless of whether the evidence is written, oral, or observed. Whether the evidence is relevant and reliable |
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Term
| sufficiency of audit evidence |
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Definition
| the amount or quantity of audit evidence |
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Term
| evaluation of the audit evidence |
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Definition
| making sense of the evidence given and seeing whether there is enough competent evidence to support management assertions |
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Term
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Definition
| An audit plan is the specific guideline to be followed when conducting an audit. An audit plan consists of the following phases: planning, fieldwork, a follow-up meeting, and a remedial audit. |
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Term
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Definition
| The process of inspecting data for errors and correcting them prior to doing data analysis. The screening may involve checking raw data, identifying outliers and dealing with missing data. |
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