- Shuffle
Toggle OnToggle Off
- Alphabetize
Toggle OnToggle Off
- Front First
Toggle OnToggle Off
- Both Sides
Toggle OnToggle Off
Front
How to study your flashcards.
Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key
Up/Down arrow keys: Flip the card between the front and back.down keyup key
H key: Show hint (3rd side).h key
PLAY BUTTON
PLAY BUTTON
16 Cards in this Set
- Front
- Back
|
Audit Risk
|
Risk that an auditor will issue an unqualified opinion on materiallly misstated financial statements
|
|
Materiality
|
Magnitude of an omission or misstatement of accounting information that makes it probable that the judgment of a reasonable person relying on the information would have been changed or influenced
|
|
Inherent Risk
|
The susceptibility of an assertion to material misstatement, assuming no related controls
|
|
Detection Risk
|
The risk that the auditor will not detect a material misstatement
|
|
Engagement Risk
|
The risk of auditor's exposure to loss or injury due to litigation
|
|
AR (Audit Risk)
|
=IRxCRxDR
|
|
IR
|
Inherent Risk
|
|
CR
|
Control Risk
|
|
DR
|
Detection Risk
|
|
Audit Risk Model
|
AR=IRxCRxDR
|
|
AIO
|
Audit Committee
Ratio and Trends Observation |
|
Fraud Triangle
|
ROI
|
|
ROI
|
Rationalization
Opportunity Incentive |
|
Applying Materiality
|
PTE
|
|
PTE
|
Planning 3-5%
Tolerate 50-75% Evaluate |
|
Engagement Letter
|
To formalize agreement between client and customer, it is a contract. It outlines management responsibilities and auditors responsibilities, in what time frame, that it will be conducted by Auditing Standards, type of audit procedures, and that it will not detect all errors.
|
