D215 - Auditing Questions and Answers
Accounting estimate An approximation of a monetary amount when a
precise means of measurement is not available
Accounting records Client's records of the initial accounting entry and
supporting documents
Acid-test (quick) ratio Measures ability to meet short-term obligations
with liquid assets such as cash, short-term
investments, and receivables.
Advanced shipping notice (ASN) An electronic acknowledgement of a transaction
by a supplier indicating goods shipped, prices, and
other information such as freight costs or taxes.
Adverse interest threat The threat that a CPA will not act with objectivity
because the CPA's interests are apposed to the
client's interest.
Adverse opinon Auditors state the financial statements are not fairly
presented due to a pervasively material departure
from the applicable financial reporting framework.
, Advocacy threat The threat that a CPA will promote a client's
interests or position to the point that his or her
objectivity or independence is compromised
Allowance for sampling risk (ASR) A measure of uncertainty associated with not
sampling the entire population
Analytical procedures Evaluations of financial information through
analysis of plausible relationships among both
financial and nonfinancial data; analytical
procedures also encompass such investigation, as
is necessary, of identified fluctuations or
relationships that are inconsistent with other
relevant information or that differ from expected
values by a significant amount.
Appropriate Refers to the quality of audit evidence gathered.
Assertions Statements or representations, explicit or implied,
made by management regarding the recognition,
measurement, presentation, and disclosure of items
included in the financial statements.
Assurance services Independent professional services that improve the
quality of information, or its context, for decision
makers.
Attestation services Services performed when an independent
practitioner, or CPA, is engaged to issue a report
on subject matter that is the responsibility of
another party.
Accounting estimate An approximation of a monetary amount when a
precise means of measurement is not available
Accounting records Client's records of the initial accounting entry and
supporting documents
Acid-test (quick) ratio Measures ability to meet short-term obligations
with liquid assets such as cash, short-term
investments, and receivables.
Advanced shipping notice (ASN) An electronic acknowledgement of a transaction
by a supplier indicating goods shipped, prices, and
other information such as freight costs or taxes.
Adverse interest threat The threat that a CPA will not act with objectivity
because the CPA's interests are apposed to the
client's interest.
Adverse opinon Auditors state the financial statements are not fairly
presented due to a pervasively material departure
from the applicable financial reporting framework.
, Advocacy threat The threat that a CPA will promote a client's
interests or position to the point that his or her
objectivity or independence is compromised
Allowance for sampling risk (ASR) A measure of uncertainty associated with not
sampling the entire population
Analytical procedures Evaluations of financial information through
analysis of plausible relationships among both
financial and nonfinancial data; analytical
procedures also encompass such investigation, as
is necessary, of identified fluctuations or
relationships that are inconsistent with other
relevant information or that differ from expected
values by a significant amount.
Appropriate Refers to the quality of audit evidence gathered.
Assertions Statements or representations, explicit or implied,
made by management regarding the recognition,
measurement, presentation, and disclosure of items
included in the financial statements.
Assurance services Independent professional services that improve the
quality of information, or its context, for decision
makers.
Attestation services Services performed when an independent
practitioner, or CPA, is engaged to issue a report
on subject matter that is the responsibility of
another party.
