Term
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Definition
IIIOERRA
Inquiry
Inspection of records and documents
Inspection of physical assets
Observation
External confirmation
Recalculation
Reperformance
Analytical Procedures |
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Term
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Definition
PERCCV
Existence and Occurrence
Completeness
Rights and Obligations
Valuation
Cutoff
Presentation and Disclosure |
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Term
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Definition
Risk of Material Misstatement * Risk that the auditor fails to identify the misstatement
OR
Inherent Risk * Control Risk * Detection Risk |
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Term
| Risk of Material Misstatement |
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Definition
| Inherent Risk * Control Risk |
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Term
| Three Categories into which Management Assertions can fall |
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Definition
Balances
Transactions
Presentation and Discolsure |
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Term
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Definition
| Sufficiency is the measure of the quality of the audit evidence. NOT a component of Audit Risk. |
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Term
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Definition
| Audit risk is the risk that the auditor will unknowingly issue an unmodified report on financial statements that contain a material misstatement. |
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Term
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Definition
| Of substantial importance, significant enough to affect evaluations or decisions by users of financial statements. |
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Term
| Substantive Auditing Procedures |
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Definition
| Tests of account balances and transactions designed to detect amy material misstatements in the financial statements. Substantive Procedures directly impact detection risk. |
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Term
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Definition
| Is the possibility that a material misstatement will occur in any given account before considering internal control. |
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Term
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Definition
| A broad overview of an audit engagement prepared in the planning stage of the engagement. Objectives, time schedule, completion date and staffing requirements. |
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Term
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Definition
| A detailed listing of the specific audit procedures to be performed over the course of the audit engagement. |
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Term
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Definition
| The risk that a material misstatement that could occur in an account will not be prevented or detected on a timely basis by internal control. |
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Term
| Adequate planning and design of an audit is necessary for an auditor to restrict what type of audit risk? |
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Definition
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Term
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Definition
| The amount at which judgments based on the financial statements may be altered. |
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Term
| Systems Approach in the audit plan |
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Definition
| Focuses on testing controls to make sure they are effective |
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Term
| Substantive Approach in the audit plan |
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Definition
| A detailed testing of specific accounts for accuracy. |
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Term
| Tracing from source documents to journals most directly addresses which financial statement assertion? |
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Definition
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