This is used to verify a representation from a third party
What is a confirmation
100
Materiality allocated to a specific account
What is tolerable misstatement
100
The risk that an auditor provides an unqualified opinion on financial statements that are, in fact, materially misstated
What is Audit Risk
100
These are commonly referred to as "client risk"
What is Inherent Risk and Control Risk
100
This is the governing body over the accounting profession in the U.S.
SEC
200
This ultimately determines the amount of audit work that is necessary to form a reasonable opinion
What is auditor judgment
200
Materiality involves these 2 types of information
What are quantitative and qualitative
200
A service where one party issues a report or assertion on subject matter that is someone else's responsibility
What is attest
200
This has an inverse relation to the risk of material misstatement
What is detection risk
200
This organization oversees audits of public companies in the U.S.
What is the PCAOB
300
When determining if all transactions have been recorded, the direction of the audit testing should start from here.
What are original source documents
300
An example is if a company occupies office space at no charge in a building owned by a shareholder
What is a related-party transaction
300
This refers to whether evidence relates to the specific assertion being tested
What is relevance
300
If internal controls are ineffective, this type of risk decreases
What is detection risk
300
Oversees audits of private companies in the U.S.
What is the ASB (Accounting Standards Board)
400
Tracing is used primarily to test this assertion
What is completeness
400
An auditor might withdraw from an engagement if illegal bribes are discovered and this party fails to take appropriate action.
Who is management of the company
400
Misinterpretation by management of facts that existed when financial statements were prepared would be classified as this.
What is an error
400
The risk that an auditor is exposed to loss or damage as a result of a relationship with a client
What is engagement risk
400
This organization established the Code of Professional Conduct.
What is the AICPA
500
If a client is under intense pressure to meet an earnings target, this is the assertion related to the purchasing process you are most concerned with testing.
What is completeness
500
These are the 3 types of audit tests in the order they are generally performed
What are Risk Assessment, Tests of Controls, and Substantive Procedures
500
If a person makes a decision that might yield advantages for some at the expense of others, he is using this approach.
What is the justice-based perspective
500
These are the three elements of the fraud triangle
What are pressure, opportunity & rationalization
500
This group is responsible for hiring an audit firm for a public company