These are stated at a conceptual level, not a detailed level
What are Principles of Professional Conduct
100
This concept of internal control recognizes that there is no guarantee of performance because there is not enough time or money to test 100% of transactions & processes
What is reasonable assurance
100
These are controls with which an auditor will be concerned
What are controls likely to prevent, or detect and correct, material misstatements
100
This type of sample is likely to provide a reasonable basis for conclusions about the population
What is a representative sample
100
This is the possibility that a sample drawn is not representative of the population
What is sampling risk
200
This organization established the Code of Professional Conduct for auditors
What is the AICPA
200
This type of documentation provides a visual representation of a company's activities and/or responsibilities
What is a flowchart
200
This type of control deficiency results when a properly designed control is not carried out as designed
What is a deficiency in operation
200
This Type I error relates to the efficiency of the audit
What is the risk of incorrect rejection
200
This is the risk that an auditor reaches an incorrect conclusion about a sample, but the error is not related to a Type I or Type II error
What is non-sampling risk
300
This type of financial relationship between an auditor and client is permitted if a materiality threshold is not exceeded
What is an indirect financial interest
300
These are COSO's 3 objectives of internal controls
What is (1) reliability of financial reporting, (2) effectiveness and efficiency of operations, and (3) compliance with laws & regulations
300
This type of deficiency must be reported to management but is not expected to result in a material weakness
What is a significant deficiency
300
This type of sampling is primarily used for tests of controls
What is attribute sampling
300
This type of sampling is primarily used when large misstatements are expected
What is classical variables sampling
400
This says that an individual's actions should not violate the rights of any individual
What is the theory of rights (rights-based approach)
400
This must be completed & signed before an audit firm can finalize its audit related to internal controls
What is management's report on ICFR
400
This is the term used for management's correction of a material weakness
What is remediation
400
If auditor judgment is used at any point in the sampling process, this is the result
What is non-statistical sampling
400
Population size will have no effect on sample size for this type of testing
What is tests of controls
500
This defines minimum standards regarding an auditor's responsibility to not disclose confidential client information
What is Rule 301
500
This control strategy will be taken when control risk is set below the maximum
What is a reliance strategy
500
If auditors are unable to obtain written representation from management about internal control, they must disclaim their opinion on ICFR because this situation has resulted
What is a scope limitation
500
A material misstatement may exist if the upper limit on misstatement exceeds this
What is tolerable misstatement
500
The sum of the sample deviation rate + an allowance for sampling risk