Test your basic knowledge |

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 auditor's independent execution of procedures or controls that were originally performed as part of other entity's internal control - either manually or through the use of CAATs.






2. The extrapolation of sample results to the population; represents the auditors 'best estimate' of the misstatement in the sampling population






3. The amount of the planning materiality that is allocated to a financial statement account.






4. Tests that concentrate on the details of amounts contained in an account balance and related footnotes.






5. Audit sampling that relies on the auditor's judgment to determine sample size - select the sample - and/or evaluate the results for the purpose of reaching a conclusion about the population.






6. A violation of laws or governmental regulations.






7. Specific acts performed as the auditor gathers evidence to determine if specific audit objectives are being met.






8. Specific acts performed by the auditor in gathering evidence to determine if specific assertions are met.






9. The process of obtaining and evaluating direct communication from a third party in response to a request for information about a particular item affecting financial statement assertions.






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






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






12. The probability that the true but unknown measure of the characteristic of interest is within specified limits.






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






14. 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 re






15. A review of audit documentation by an additional person (normally - a partner or equivalent with the firm) who has not been involved with the audit; its purpose is to ensure that quality of the audit work and reporting is consistent with the quality






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






17. Test to detect errors or fraud in individual transactions.






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






19. A process designed by - or under the supervision of - the company's principal executive and principal financial officers - or persons performing similar functions - and effected by the company's board of directors - management - and other personnel -






20. The tone of an organization - which reflects the overall attitude - awareness - and actions of the board of directors - management - and owners influencing the control consciousness of its people.






21. Physical examination of the tangible assets.






22. A systematic process of (1) objectively obtaining an evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and (2) communicating the resu






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






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






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






26. Sampling that uses the laws of probability to select and evaluate the results of an audit sample - thereby permitting the auditor to quantify the sampling risk for the purpose of reaching a conclusion about the population






27. A range of acceptable amounts or a precisely determined point estimate for an estimate (eg. uncollectible receivables) - if that is a better estimate than any other amount






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






29. A deficiency in internal control exists when the design or operation of a control does not allow management or employees - in the normal course of performing their assigned functions - to prevent - or detect and correct misstatements on a timely basi






30. A process that assesses the quality of internal control performance over time.






31. Audit evidence that includes minutes of meetings; confirmations from third parties; industry analysts' reports; comparable data about competitors (benchmarking); controls manuals; information obtained by the auditor from such audit procedures as inqu






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






33. A weakness in the design or operation of a control such that management or employeesm in the normal course of performing their assigned functions - fail to prevent - or detect misstatements on a timely basis.






34. 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.






35. A deficiency - or combination of deficiencies - in internal control - such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented - or detected and corrected - on a timely basis.






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






37. Specific acts performed by the auditor in gathering evidence to determine if specific assertations are being met.






38. 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






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






40. A control deficiency - or combination of control deficiencies - that adversely effects the entity's ability to initate - authorize - record - process - or report external financial data reliably in accordance with GAAP such that there is more than a






41. The amount of misstatement that the auditor believes exists in the population.






42. A service when a practitioner is engaged to issue or does issue a report on a subject matter - or an assertion about subject matter - that is the responsibility of another party. Encompasses financial statement audits.






43. A deficiency - or combination of deficiencies - that results in a reasonable possibility that a material misstatement of the company's annual or interim financial stsatements will not be prevented or detected on a timely basis






44. Expressed or implied representations by management that are reflected in the financial statement components






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






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






47. Consulting services that may provide advice and assistance concerning an entity's organization - personnel - finances - operations - systems - or other activities






48. 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






49. Expressed or implied representations by management that are reflected in the financial statement components.






50. A deficiency - or a combination of deficiencies - in internal control that is less severe than a material weakness - yet important enough to merit attention by those charged with governance.







Sorry!:) No result found.

Can you answer 50 questions in 15 minutes?


Let me suggest you:

Browse all subjects

Browse all tests

Most popular tests



Major Subjects

Tests & Exams


AP
CLEP
DSST
GRE
SAT
GMAT

Browse all subjects

Browse all tests

Most popular tests