Term
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Definition
| agreements that the entity will hold to a fixed set of conditions, such as the purchase or sale of merchandise at a stated price, at a future date, regardless of what happens to profits or to the economy as a whole |
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Term
| Completing the Audit Checklist |
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Definition
| a reminder to the auditor of aspects of the audit that may have been overlooked |
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Term
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Definition
| a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place |
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Term
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Definition
| the use of one audit report date for normal subsequent events and a later date for one or more subsequent events that come to the auditor's attention after the field work has been completed |
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Term
| Financial Statement Disclosure checklist |
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Definition
| a questionnaire that reminds the auditor of disclosure problems commonly encountered in audits and that facilitates final review of the entire audit by an independent partner |
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Term
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Definition
| a review of the financial statements and the entire set of audit files by a completely independent reviewer to whom the audit team must justify the evidence accumulated and the conclusions reached |
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Term
| Inquiry of the client's attorneys |
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Definition
| a letter from the client requesting that legal counsel inform the auditor of pending litigation or any other information involving legal counsel that is relevant to financial statement disclosure |
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Term
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Definition
| a written communication from the client to the auditor formalizing statements that the client has made about matters pertinent to the audit |
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Term
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Definition
| an optional letter written by the auditor to a client's management containing the auditor's recommendations for improving any aspect of the client's business |
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Term
| Other information included in annual reports |
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Definition
| information that is not a part of the financial statements but is published with them; auditors must read this information for inconsistencies with the financial statements |
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Term
| Review of Subsequent Events |
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Definition
| the auditing procedures performed by auditors to identify and evaluate subsequent events; also known as a post-balance-sheet review |
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Term
| Review of Audit Documentation |
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Definition
| a review of the completed audit files by another member of the audit firm to ensure quality and counteract bias |
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Term
| Subsequent discover of facts |
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Definition
| auditor discovery that the financial statements are materially misstated after they have been issued |
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Term
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Definition
| transactions and other pertinent events that occurred after the balance sheet date that affect the fair presentation or disclosure of the statements being audited |
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Term
| Unadjusted misstatements audit schedule |
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Definition
| a summary of immaterial misstatements not adjusted at the time they were found, used to help the auditors assess whether the combined amount is material; also known as a summary of possible misstatements |
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Term
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Definition
| a potential legal claim against a client where the condition for a claim exists but no claim has been filed |
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