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Auditing-Chapter 11
Auditing. Chapter Eleven. Auditing the Purchasing Process.
12
Accounting
Undergraduate 4
05/08/2014

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Cards

Term
Analytical Procedures
Definition
Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data.
Term
Application Controls
Definition
Controls that apply to the processing of specific computer applications and are part of the computer programs used in the accounting system.
Term
Assertions
Definition
Expressed or implied representations by management that are reflected in the financial statement components.
Term
Blank or Zero-Balance Confirmation
Definition
A confirmation request on which the recipient fills in the amount or furnishes the information requested.
Term
Confirmation
Definition
An external confirmation represents audit evidencce obtained by the auditor as a direct written response to the auditor from a third party (the confirming party) in paper form or by electronic or other medium.
Term
General Controls
Definition
Controls that relate to the overall information-processing environment and have a pervasive effect on the entity's computer operations.
Term
Positive Confirmation
Definition
A confirmation request to which the recipient responds whether or not her or she agress with the amount or information stated.
Term
Reliance Strategy
Definition
The auditor's decision to rely on the entity's controls, test those controls, and reduce the direct tests of the financial statement accounts.
Term
Substantive Test of Transactions
Definition
Tests to detect errors or fraud in individual transactions.
Term
Tests of Controls
Definition
Audit procedures performed to test the operating effectiveness of controls in preventing or detecting material misstatements at the relevant assertion level.
Term
Tests of Details of Account Balances and Disclosures
Definition
Tests that concentrate on the details of amount contained in an account balance and related footnotes.
Term
Walkthrough
Definition
A transaction being traced by an auditor from origination through the entity's information system until it is reflected in the entity's financial reports. It encompasses the entire process of initiating, authorizing, recording, processing, and reporting individual transactions and controls for each of the significant processes identified.
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