Vocab Crossword
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
                                                        
 
 
Down: 1) : A state of objectivity in fact and in appearance, including the absence of any significant conflicts of interest2) : 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.3) 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 that purpose of reaching a conclusion about the population.5) 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 efficiency of operations, and (3) compliance with applicable laws and regulations.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 relevant assertion is prevented or detected by controls on a timely basis.7) Determination of the mathematical accuracy of documents or records.10) Evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data.11) The probability that the true but unknown measure of the characteristic of interest is within specified limits.12) 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.14) An existing condition, situation, or set of circumstances involving uncertainty as to possible loss to an entity that will ultimately be resolved when some future event occurs or fails to occur.15) The susceptibility of an assertion to material misstatement, assuming no related controls.16) The application of audit procedures to less than 100 percent of the items in a population of audit relevance selected in such a way that the auditor expects the sample to be representative of the population and thus likely to provide a reasonable basis for conclusions about the population18) Tests of transactions that both evaluate the effectiveness of controls and detect monetary errors.19) : 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.20) Audit procedures performed to test the operating effectiveness of controls in preventing or detecting and correcting, material misstatements at the relevant assertion level.23) The risk that the auditor may unknowingly fail to appropriately modify his or her opinion on financial statements that are materially misstated. Across: 4) The risk that the auditor will not detect a material misstatement that exists in the financial statements.8) Tests to detect errors or fraud in individual transactions.9) Generally Accepted Auditing Standards – Standards against which the quality of the auditor’s performance is measured.13) : 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.17) The auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control, either manually or through the use of computer-assisted audit techniques.21) 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 meetings: confirmations from third parties: industry analysts’ reports: controls manuals: information obtained by the auditor through audit procedures such as inquiry, observation, and inspection.22) 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.24) : 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 basis.25) A confirmation request to which the recipient responds whether or not he or she agrees with the amount or information stated.26) Expressed or implied representations by management about information that is reflected in the financial statements. The three sets of assertions relate to ending account balances, transactions, and presentation and disclosure.27) 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 with financial statements audited and reported on.28) The risk that material misstatements that could occur will not be prevented, or detected and corrected, by internal controls.29) The possibility that the sample drawn is not representative of the population and that, as a result, that auditor reaches an incorrect conclusion about the reliability of the control, the account balance, or class of transactions based on the sample.30) The concept that the manager generally has more information about the true financial position and results of operations of the entity than the absentee owner does.
 

 

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