Term
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Definition
| the final date of the reporting period |
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Term
| Assessed level of control risk |
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Definition
| level of control risk used by the auditors in determining the acceptable detection risk for a F/S assertion and the extent of substantive procedures |
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Term
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Definition
| checklist, form, or computer program that assists auditors in making audit decisions by ensuring that they consider all relevant information or that aids them in weighting and combining the info to make a decision |
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Term
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Definition
| a control that reduces the risk that an existing or potential control weakness will result ina failure to meet a control objective |
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Term
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Definition
| controls that function together to achieve the same control objective |
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Term
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Definition
| the possibility that a material misstatement due to error or fraud will not be prevented or detected by a client's internal control |
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Term
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Definition
| a control established to remedy control problems |
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Term
| Deficiency in internal control |
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Definition
| A situation in which the design or operation of a control does not allow mgmt or employeees to prevent or detect misstatements |
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Term
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Definition
| controls designed to discover control problems soon after they occur |
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Term
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Definition
| a form of insurance for losses attributable to theft or embezzlement by bonded employees |
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Term
| Foreign Corrupt Practices Act |
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Definition
| Prohibits bribes. Requires that public companies have system of IC |
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Term
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Definition
| Substantive procedures for all relevant assertions and tests of controls when the auditors' risk assessment includes and expectation that controls are operating effectively |
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Term
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Definition
| Assigned duties that place an individual in a position to both perpetrate and conceal errors or fraud in the normal course of job performance |
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Term
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Definition
| the risk of material misstatement of a F/S assertion assuming there are no related controls |
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Term
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Definition
| an audit where auditors express an opinion on ICFR and F/S |
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Term
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Definition
| corporation employees who design and execute audit programs to test the effectiveness and efficiency of all aspect s of internal control |
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Term
| Internal Control Questionnaire |
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Definition
| one of several methods of describing IC in audit working papers |
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Term
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Definition
| process designed to provide reasonable assurance regarding the achievement of objectives in the categories of 1) effectiveness and efficiency of operations, 2)reliability of F/R and 3) compliance |
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Term
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Definition
| a report to mgmt contaning the auditors recommendations for correcting any deficiencies disclosed by the auditors' consideration of internal control. |
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Term
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Definition
| deficiency in ICFR such that there is a reasonable possibility that a Material misstatment of the F/S will not be detected |
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Term
| Planned assessed level of control risk |
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Definition
| the level of control risk the auditors assume in designing further audit procedures |
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Term
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Definition
| controls that deter control problems before they occur |
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Term
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Definition
| duplicate controls that achieve a control objective |
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Term
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Definition
| Assertions that have a meaningful bearin on whether an account balance, class of transaction, or disclosure is fairly stated |
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Term
| Risk Assessment procedures |
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Definition
| Audit procedures performed to obtain an understanding of the client and its environment, including IC. They include 1)inquiries 2) analytical procedures 3) observation and other procedures |
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Term
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Definition
| a deficiency in ICFR that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the company's financial reporting |
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Term
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Definition
| (tests) procedures performed by the auditor to detect material misstatements in account balances, classes of transactions and disclosures |
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Term
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Definition
| Stds or benchmarks used to measure and present the subject matter. Must include objectivity, measurability, completeness and relevance |
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Term
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Definition
| Procedures performed by the auditor to test the operating effectiveness of controls in preventing or detecting material misstatements |
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