Term
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Definition
| Independent professional services that improve the quality of information, or its context, for decision makers. Encompasses attest services and financial statement audits. |
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Term
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Definition
| A service when a a practitioner is engaged to issue or does issue a report on subject matter, or an assertion about subject matter , that is the responsibility of another party . Encompasses financial statement audits. |
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Term
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Definition
| All the information used by the auditor in arriving at the conclusions on which the audit opinion is based; includes the information contained in the accounting records underlying the financial statements and other information. |
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Definition
| The risk that the auditor may knowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated. |
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Definition
| A systematic process of 1.) objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and 2.) communicating the results to interested users. |
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Term
| Financial Statement Assertions |
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Definition
| Expressed or implied representations by management that are reflected in the financial statement components. |
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Definition
| Intentional misstatements that can be classified as fraudulent financial reporting and misappropriation of assets/ |
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Term
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| the concept that the manager generally has more information about the true financial position and results of operations of the entity than the absentee owner does. |
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Term
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Definition
| the magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced. |
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Term
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Definition
| An instance where a financial statement assertion is not in accordance with the criteria against which it is audited . Misstatements may be classified as fraud (intentional), other illegal acts such as noncompliance with laws and regulations (intentional or unintentional), and errors (unintentional). |
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Term
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Definition
| The concept that an audit done in accordance with auditing standards may fail to detect a material misstatement in a client's financial statements. |
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Term
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Definition
| The end product of the auditor's work, indicating the auditing standards followed, and expressing an opinion as to whether an entity's financial statements are fairly presented in accordance with agreed-upon criteria. |
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Term
| Risk of Material Misstatement |
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Definition
| the risk that the entity's financial statements will contain a material misstatement whether cause by error or fraud |
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Term
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Definition
| A "clean" audit report, indicating the auditor's opinion that a client's financial statements are fairly presented in accordance with agreed-upon criteria |
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Definition
| A committee consisting of members of the board of directors, charged with overseeing the entity's system of internal control over financial reporting, internal and external auditors, and financial reporting process. Members typically must be independent of management. |
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Definition
| Persons elected by the stockholders of a corporation to oversee management and to direct the affairs of the corporation |
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Term
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Definition
| Processes implemented by management to achieve entity objectives. Business processes are typically organized into the following categories: revenue, purchasing, human resource management, inventory management, and financing processes. |
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Definition
| The oversight mechanisms in place to help ensure the proper stewardship over an entity's assets. Management and the board of directors play primary roles , and the independent auditor plays a key facilitating role |
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Term
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Definition
| A system or code of conduct based on moral duties and obligations that indicates how an individual should behave. |
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Term
| Financial Statement Assertions |
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Definition
| Expressed or implied representations by management about |
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Term
| Generally Accepted Accounting Principals |
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Definition
| Accounting principles that are generally accepted for the preparation of financial statements in the United States. GAAP standards are currently issued primarily by the FASB, with oversight and influence by the SEC. |
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Term
| Generally Accepted Auditing Standards |
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Definition
| Ten broad statements guiding the conduct of financial statement auditing. |
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Definition
| Violations of laws or government regulations. |
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Term
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Definition
| A state of objectivity in fact and in appearance, including the absence of any significant conflicts of interest. |
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Term
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Definition
| An audit of both financial statements and internal control over financial reporting, provided by the external auditor. Required for public companies. |
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Term
| Management Advisory Services |
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Definition
| Consulting services that may provide advice and assistance concerning an entity's organization, personnel, finances, operations, systems,or other activities. |
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Term
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Definition
| An organization created to provide professional accounting-related services, including auditing. Usually formed as a proprietorship or as a form of partnership. |
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Term
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Definition
| Standards regarding the conduct of financial statement auditing for public companies. Currently consist primarily of standards and statements established by the AICPA's Auditing Standards Board, as these statements and standards were adopted by the PCAOB in 2003 on an interim basis, though the PCAOB has addded a few significant standards. |
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Term
| Statements of Auditing Standards |
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Definition
| Statements issued by the AICPA's Auditing Standards Board, considered as interpretations of the 10 GAAS statements. |
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