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Definition
| The risk assessment standards prohibit the auditor from “defaulting to the maximum” control risk. |
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Term
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| It is during this phase that the auditor determines whether the controls identified during the preliminary review are operating properly and in the manner described by the client. |
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Term
| Sarbanes-Oxley Act Section 404 |
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Definition
| mandates that all publicly-traded companies must establish internal controls and procedures for financial reporting and must document, test and maintain those controls and procedures to ensure their effectiveness. |
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Definition
| the magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced by the omission or misstatement. |
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Term
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Definition
| identifies issues not required to be disclosed in the Annual Financial Report but represent the auditor's concerns and suggestions noted during the audit. |
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Definition
| The client year end, some will be calendar year ends like December 31st and other have fiscal year ends such as September 30 or June 30th. Don’t be surprised if you have some year ends like the last Monday of March-this comes up in different industries |
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Term
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Definition
| Calculated by performing a tentative taxable income calculation with a short-period, annualized trial balance |
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Definition
| The IRS grants you an automatic six-month extension to file your taxes every year, as long as you complete Form 4868 |
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