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Auditing Vocab

Subject : business-skills
Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The policies and procedures that help ensure that management's directives are carried out.






2. Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.






3. A state of objectivity in fact and in appearance - including the absence of any significant conflicts of interest.






4. The uncertainty that results from sampling; the difference between the expected mean of the population and the tolerable deviation or misstatement.






5. The method by which an entity's boardof 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 efficien






6. An objective for ICFR generally relates to a relevant financial statement assertion and states a criterion for evaluating whether the company's control procedures in a specific area provide reasonable assurance that a misstatement or omission in that






7. Controls that apply to the processing of specific computer applications and are part of the computer programs used in the accounting system.






8. Violations of laws or government regulations.






9. A management letter is a report to management containing the auditors' recommendations for correcting any deficiencies disclosed by the auditors' consideration of internal control. The management letter also provides recommendations on where the comp






10. The auditor's opinion that the financial statements do not present fairly in accordance with generally accepted accounting principles (or other comprehensive basis of accounting) due to a pervasively material misstatement.






11. The risk that material misstatements that could occur will not be prevented - or detected and corrected - by internal controls.






12. A term that implies some risk that a material misstatement could be present in the financial statements without the auditor detecting it - even when the auditor has exercised due care.






13. An attitude that includes a questioning mind and a critical assessment of an audit evidence. The auditor should not assume that management is either honest or dishonest.






14. The auditor's principal record of the work performed and the basis for the conclusions in the auditor's report. It also facilitates the planning - performance - and supervision of the engagement and provides the basis for the review of the quality of






15. 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 efficie






16. Unintentional misstatements or omissions of amounts or disclosures.






17. A violation of laws or governmental regulations.






18. A confirmation request to which the recipient responds whether or not he or she agrees with the amount or information stated.






19. The possibility that the sample drawn is not representative of the population and that - as a result - the auditor reaches an incorrect conclusion about the reliability of the control - the account balance - or class of transactions based on the samp






20. Audit procedures performed to test the operating effectiveness of controls in preventing or detecting material misstatements at the relevant assertion level.






21. Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.






22. The magnitude of an omission or misstatement of accounting information that - in light of surrounding circumstances - makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced.






23. Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.






24. Seeking information of knowledgeable persons - both financial and nonfinancial - throughout the entity or outside the entity.






25. A risk of material misstatement that is important enough to require special audit consideration.






26. The risk that the auditor is exposed to financial loss or damage to his or her professional reputation from litigation - adverse publicity - or other events arising in connection wit financial statements audited and reported on.






27. An organization created to provide professional accounting-related services - including auditing. Usually formed as a proprietorship or as a form of partnership.






28. A letter that corroborates oral representations made to the auditor by management or by other auditors and documents the continued appropriateness of such representations.






29. The uncertainty that results from sampling; the difference between the expected mean of the population and the tolerable deviation or misstatement.






30. A letter that formalizes the contract between the auditor and the client and outlines the responsibilities of both parties.






31. The risk that the sample supports the conclusion that the control is operating effectively when it is not or that the recorded account balance is not materially misstated when it is materially misstated.






32. A measure of sampling risk added and subtracted to the projected misstatement to form a confidence interval.






33. Audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting - material misstatements at the relevant assertion level.






34. Process of watching a process or procedure being performed by others.






35. Controls that relate to the overall information processing environment and have a pervasive effect on the entity's computer operations.






36. The total of the projected misstatement plus the allowance for sampling risk.






37. Controls that have a pervasive effect on the entity's system of internal control such as controls related to the control environment; controls over management override; the company's risk assessment process; centralized processing and controls - incl






38. The magnitude of an omission or misstatement of accounting information that - in light of surrounding circumstances - makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced.






39. The auditor's decision not to tely on the entity's controls and to audit the related financial statement accounts by relying more on substantive procedures.






40. The risk that the entity's financial statements will contain a material misstatements whether caused by error or fraud.






41. The risk that the auditor will not detect a material misstatement that exists in the financial statements






42. The auditor's plan for the expected conduct - organization - and staffing of the audit.






43. Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data






44. When a subsequent event disclosed in the financial statements occurs after the date of the report but before the issuance of the related financial statements - the auditor may use dual dating. The auditor may use the original date of the report excep






45. Attribute-sampling techniques used to estimaed the dollar amount of misstatement for a class of transactions or an account balance.






46. Computer programs that allow auditors to test computer files and databases.






47. Examination of internal or external records or documents that are in paper form - electronic form - or other media.






48. Tests to detect errors or fraud in individual transactions.






49. Standards regarding the conduct of financial statement auditing for public companies. Currently - consist primarily of standards and statements established by the AICPA's Auditing Standards Board - as these statements and standards were adopted by th






50. Standards against which the quality of the auditor's performance is measured.







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