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    Glossary - A - Guide - Through - Common - Audit - Deficiencies

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    aalalal
    This document defines key terms related to common audit deficiencies: 1) It defines assertions, audit documentation, experienced auditors, inherent risk, internal control, reasonable assurance, relevant assertions, and risk assessment procedures. 2) It also defines significant risk and provides qualifications for smaller, less complex entities. 3) Key areas covered include the representations embodied in financial statements, the record of audit procedures, the experience needed by auditors, the susceptibility of misstatements, processes designed to provide reliability of financial reporting, and the identification and assessment of risks.

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    Glossary - A - Guide - Through - Common - Audit - Deficiencies

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    aalalal
    41 views2 pages
    This document defines key terms related to common audit deficiencies: 1) It defines assertions, audit documentation, experienced auditors, inherent risk, internal control, reasonable assurance, relevant assertions, and risk assessment procedures. 2) It also defines significant risk and provides qualifications for smaller, less complex entities. 3) Key areas covered include the representations embodied in financial statements, the record of audit procedures, the experience needed by auditors, the susceptibility of misstatements, processes designed to provide reliability of financial reporting, and the identification and assessment of risks.

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    Glossary - A_Guide_Through_Common_Audit_Deficiencies

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    This document defines key terms related to common audit deficiencies: 1) It defines assertions, audit documentation, experienced auditors, inherent risk, internal control, reasonable assurance, relevant assertions, and risk assessment procedures. 2) It also defines significant risk and provides qualifications for smaller, less complex entities. 3) Key areas covered include the representations embodied in financial statements, the record of audit procedures, the experience needed by auditors, the susceptibility of misstatements, processes designed to provide reliability of financial reporting, and the identification and assessment of risks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views2 pages

    Glossary - A - Guide - Through - Common - Audit - Deficiencies

    Uploaded by

    aalalal
    This document defines key terms related to common audit deficiencies: 1) It defines assertions, audit documentation, experienced auditors, inherent risk, internal control, reasonable assurance, relevant assertions, and risk assessment procedures. 2) It also defines significant risk and provides qualifications for smaller, less complex entities. 3) Key areas covered include the representations embodied in financial statements, the record of audit procedures, the experience needed by auditors, the susceptibility of misstatements, processes designed to provide reliability of financial reporting, and the identification and assessment of risks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Glossary - A Guide Through Common Audit Deficiencies

    Term Definition Slide


    Representations by management, explicit or otherwise,
    that are embodied in the financial statements as used by
    Assertions 45
    the auditor to consider the different types of potential
    misstatements that may occur.
    The record of audit procedures performed, relevant audit
    Audit evidence obtained, and conclusions the auditor reached
    14
    Documentation (terms such as working papers or workpapers are also
    sometimes used).
    An individual (whether internal or external to the firm) who
    has practical audit experience, and a reasonable
    understanding of
    a. audit processes;
    Experienced b. GAAS and applicable legal and regulatory
    19
    Auditor requirements;
    c. the business environment in which the entity operates;
    and
    d. auditing and financial reporting issues relevant to the
    entity's industry.
    The susceptibility of an assertion about a class of
    transaction, account balance, or disclosure to a
    Inherent Risk misstatement that could be material, either individually or 52
    when aggregated with other misstatements, before
    consideration of any related controls.
    A process effected by those charged with governance,
    management, and other personnel that is designed to
    provide reasonable assurance about the achievement of
    Internal Control the entity's objectives with regard to the reliability of 81
    financial reporting, effectiveness and efficiency of
    operations, and compliance with applicable laws and
    regulations.
    Reasonable In the context of an audit of financial statements, a high,
    81
    Assurance but not absolute, level of assurance.
    A financial statement assertion that has a reasonable
    possibility of containing a misstatement or misstatements
    Relevant that would cause the financial statements to be materially
    48
    Assertion misstated. The determination of whether an assertion is a
    relevant assertion is made without regard to the effect of
    internal controls.
    The audit procedures performed to obtain an
    understanding of the entity and its environment, including
    Risk Assessment
    the entity's internal control, to identify and assess the RM, 90
    Procedures
    whether due to fraud or error, at the financial statement
    and relevant assertion levels.
    Glossary - A Guide Through Common Audit Deficiencies

    Term Definition Slide


    An identified and assessed risk of material misstatement
    Significant Risk that, in the auditor's professional judgment, requires 55
    special audit consideration.
    For purposes of specifying additional considerations to
    audits of smaller, less complex entities, this term refers to
    an entity that typically possesses qualitative
    characteristics, such as the following:
    a. Concentration of ownership and management in a
    small number of individuals; and
    b. One or more of the following:
    i. Straightforward or uncomplicated transactions
    ii. Simple record keeping
    Smaller, Less
    iii. Few lines of business and few products within 84
    Complex Entity
    business lines
    iv. Few internal controls
    v. Few levels of management with responsibility for a
    broad range of controls
    vi. Few personnel, many having a wide range of duties
    These qualitative characteristics are not exhaustive, they
    are not exclusive to smaller, less complex entities, and
    smaller, less complex entities do not necessarily display all
    of these characteristics.

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