Term
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Definition
| Freedom from those pressures and other factors that compromise, or can reasonably be expected to compromise, an auditor’s ability to make unbiased and objective audit decisions. |
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Term
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Definition
| The likelihood that the auditor discovers a material misstatement due to error or fraud and discloses the misstatement in an audit report designed to lend credibility to published financial statements and to protect investors from receiving misleading audits. |
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Term
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Definition
| Risk of the auditor expressing an inappropriate opinion on the financial statements. |
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Term
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Definition
| The most efficient strategy to produce the best audit quality by identifying activities that represent significant emerging business risks or opportunities for the organization. |
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Term
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Definition
| Risk that a material misstatement in the unaudited information will not be detected or corrected by the management’s internal control procedures on a timely basis. |
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Term
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Definition
| The risk that a material misstatement in the unaudited information will not be detected by the auditor. |
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Term
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Definition
| The perceived difference between what society expects from auditors and what auditors are willing and able to assume as responsibility in compliance with their professional standards. |
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Term
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Definition
| Risk of a material misstatement in the unaudited information assuming the absence of internal control procedures. |
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Term
| Integrated audit approach |
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Definition
| Combined audit of both internal controls and financial statements. |
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Term
| Internal Revenue Service (IRS) |
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Definition
| The federal agency responsible for administering and enforcing all internal revenue laws in the United States. |
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Term
| International Standards on Auditing (ISAs) |
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Definition
| International auditing standards issued by the IAASB. |
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Term
| Investigation and Discipline Board (AIDB) |
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Definition
| An independent investigative and disciplinary body for accountants in the United Kingdom. |
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Term
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Definition
| A private-sector nonprofit organization that oversees auditors of public companies to protect the interests of investors and further the public interest in preparation of fair, informative, and independent reports by issuing auditing and attestation standards as well as ethics and independence rules. |
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Term
| Professional Ethics Executive Committee (PEEC) |
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Definition
| A senior technical committee of AICPA that promotes public awareness and confidence in the integrity, objectivity, and professionalism of its members. |
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Term
| Standing Advisory Group (SAG) |
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Definition
| Advises the PCAOB on the establishment of auditing and related professional practice standards. |
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Term
| Statements on Auditing Standards |
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Definition
| Promulgated by the Auditing Standards Board of the AICPA to provide guidance to auditors on generally accepted auditing standards. |
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Term
| PCAOB Auditing Standard No. 1 |
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Definition
| (audit is conducted in accordance with auditing standards of PCAOBUS, the city and state has to be disclosed) |
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Term
| PCAOB Auditing Standards No. 2 and 5 |
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Definition
| requires the independent audit to opine only on the effectiveness of ICFR, not the management processes and assessments concerning ICFR |
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Term
| PCAOB Auditing Standard No. 3 |
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Definition
| auditors are required to maintain the audit documentation is sufficient manner and keep the records for at least seven years |
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Term
| PCAOB Auditing Standard No. 4 |
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Definition
| voluntarily engagement for the auditor’s report on the company’s elimination of previously reported material weaknesses in its ICFR |
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