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






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






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






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






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






7. 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.






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






9. The risk that the auditor may unknowingly fail to appropriately modify the opinion on materially misstated financial statements.






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






11. The deviation rate that the auditor expects to exist in the population.






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






13. The auditor's decision to rely on the entity's controls - test those controls - and reduce the direct tests of the financial statements accounts.






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






15. 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






16. The policies and procedures that help ensure that management's directives are carried out.






17. 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.






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






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






20. 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






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






22. The application of an audit procedure to less than 100 percent of the items within an account or class of transactions for the purpose of evaluating some characteristic of the balance or class.






23. Papers that document the evidence gathered by auditors to show the work they have done - the methods and procedures they have followed - and the conclusions they have developed in an audit of financial statements or other type of engagement.






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






25. The use of normal distribution theory to estimate the dollar amount of misstatement for a class of transactions or an account balance.






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






27. 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






28. All the information used by the auditor in arriving at the conclusions on which the audit opinion is based - and includes the information contained in the accounting records underlying the financial statements and other information such as minutes of






29. The relevance of audit evidence refers to its relationship to the assertion or to the objective of the control being tested.






30. Statements issued by the AICPA Auditing Standards Boards - considered as interpretations of the 10 GAAS statements.






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






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






33. 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






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






35. Expressed or implied representations by management about information that is reflected in the financial statements. The three sets of assertions related to ending account balances - transactions - and presentation and disclosure.






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






37. 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






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. A system or code of conduct based on moral duties and obligations that indicates how an individual should behave.






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






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






42. An event occurring between the balance sheet date and the audit report release date - Type I - Type II






43. 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.






44. 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






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






46. Expressed or implied representations by management regarding the recognitions - measurement - presentation - and disclosure of information in the financial statements and related disclosures.






47. 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






48. The possibility that the auditor may use inappropriate audit procedures - fail to detect a misstatement when applying an audit procedure - or misinterpret an audit result.






49. Business transactions between individuals and organizations that occur without proper documents - using computers - and telecommunication networks.






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