Term
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Definition
| Controls that apply to the processing of specific computer applications and are part of the computer programs used in the accounting system. |
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Term
| Computer-Assisted Audit Techniques (CAATs) |
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Definition
| Computer programs that allow auditors to test computer files and databases. |
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Term
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Definition
| The policies and procedures that help ensure that management's directives are carried out. |
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Term
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Definition
| A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. |
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Term
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Definition
| The tone of an organization, which reflects the overall attitude, awareness, and actions of the board of directors, management, and owners influencing the control consciousness of its people. |
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Term
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Definition
| The risks that material misstatements that could occur will not be prevented, or detected and corrected, by internal controls. |
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Term
| Electronic (Internet) Commerce |
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Definition
| Business transactions between individuals and organizations that occur without paper documents, using computers and telecommunications networks. |
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Term
| Electronic Data Interchange |
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Definition
| The transmission of business transactions over telecommunication networks. |
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Term
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Definition
| Controls that relate to the overall information processing environment and have a pervasive effect on the entity's computer operations. |
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Term
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Definition
| The method by which an entity's board of directors, management, and other personnel provide reasonable assurance about the achievement of objectives in the following categories: (1) reliability of financial reporting, (2) effectiveness and efficiency of operations, and (3) compliance with applicable laws and regulations. |
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Term
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Definition
| A deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. |
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Term
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Definition
| A process that assesses the quality of internal control performance over time. |
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Term
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Definition
| The auditor's decision to rely on the entity's controls, test those controls, and reduce the direct tests of the financial statements accounts. |
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Term
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Definition
| A deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. |
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Term
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Definition
| The auditor's decision not to rely on the entity's controls and to audit the related financial statement accounts by relying more on substantive procedures. |
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