Auditing & Assurance Services: A Systematic
Approach Questions with Correct Answers
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Terms in this set (71)
Expressed or implied representations by management
regarding the recognition, measurement,
Assertions
presentation, and disclosure of information in the
financial statements and related disclosures
independent professional services that improve the
quality of information, or its context, for decision
Assurance Services
makers. Encompasses attest services and financial
statement audits
Services provided by a practitioner engaged to issue
a report on subject matter, or an assertion about
Attest Services
subject matter, that is the responsibility of another
party. Encompasses financial statement audits
Using analysis, modeling, and visualization to discover
Audit Data Analytics and analyze patterns, anomalies, and other
information in data in the context of the audit
All the information used by the auditor in arriving at
the conclusions on which the audit opinion is based.
Audit Evidence Audit evidence includes the information contained in
the accounting records underlying the financial
statements, as well as other information
, The risk that the auditor expresses an inappropriate
Audit Risk audit opinion when the financial statements are
materially misstated
A systematic process of objectively obtaining and
evaluating evidence regarding assertions about
economic actions and events to ascertain the degree
Auditing
of correspondence between those assertions and
established criteria and communicating the results to
interested users
The concept that the manager generally has more
information about the true financial position and
Information Asymmetry
results of operations of the entity than the absentee
owner does
The maximum amount by which the auditor believes
Materiality the financial statements could be misstated and still
not affect the decisions of users
A departure from the applicable reporting framework
(e.g., GAAP) that, if material, causes the financial
statements to not be presented fairly. Misstatements
Misstatement may be classified as fraud (intentional), other illegal
acts such as noncompliance with laws and regulations
(intentional or unintentional), and errors
(unintentional)
The concept that an audit done in accordance with
auditing standards may fail to detect a material
Reasonable Assurance misstatement in a client's financial statements. In an
auditing context this term has been defined to mean a
high but not absolute level of assurance
The end product of the auditor's work, indicating the
auditing standards followed and expressing an
Reporting opinion as to whether an entity's financial statements
are fairly presented in accordance with agreed-upon
criteria (e.g., GAAP)
Approach Questions with Correct Answers
Save
Terms in this set (71)
Expressed or implied representations by management
regarding the recognition, measurement,
Assertions
presentation, and disclosure of information in the
financial statements and related disclosures
independent professional services that improve the
quality of information, or its context, for decision
Assurance Services
makers. Encompasses attest services and financial
statement audits
Services provided by a practitioner engaged to issue
a report on subject matter, or an assertion about
Attest Services
subject matter, that is the responsibility of another
party. Encompasses financial statement audits
Using analysis, modeling, and visualization to discover
Audit Data Analytics and analyze patterns, anomalies, and other
information in data in the context of the audit
All the information used by the auditor in arriving at
the conclusions on which the audit opinion is based.
Audit Evidence Audit evidence includes the information contained in
the accounting records underlying the financial
statements, as well as other information
, The risk that the auditor expresses an inappropriate
Audit Risk audit opinion when the financial statements are
materially misstated
A systematic process of objectively obtaining and
evaluating evidence regarding assertions about
economic actions and events to ascertain the degree
Auditing
of correspondence between those assertions and
established criteria and communicating the results to
interested users
The concept that the manager generally has more
information about the true financial position and
Information Asymmetry
results of operations of the entity than the absentee
owner does
The maximum amount by which the auditor believes
Materiality the financial statements could be misstated and still
not affect the decisions of users
A departure from the applicable reporting framework
(e.g., GAAP) that, if material, causes the financial
statements to not be presented fairly. Misstatements
Misstatement may be classified as fraud (intentional), other illegal
acts such as noncompliance with laws and regulations
(intentional or unintentional), and errors
(unintentional)
The concept that an audit done in accordance with
auditing standards may fail to detect a material
Reasonable Assurance misstatement in a client's financial statements. In an
auditing context this term has been defined to mean a
high but not absolute level of assurance
The end product of the auditor's work, indicating the
auditing standards followed and expressing an
Reporting opinion as to whether an entity's financial statements
are fairly presented in accordance with agreed-upon
criteria (e.g., GAAP)
