PLANNING
This list schedules out the supporting documentation needed from the client to complete the annual audit.
What is a PBC List?
This is another word for Test of Design.
What is walkthrough?
Abbreviated notations or symbols used on audit work papers to represent specific meanings or explanations for work performed.
What is a tickmark?
In this letter, management confirms they designated an individual who possesses suitable skill, knowledge, or experience to understand and oversee services.
What is a management representation letter?
This section of the audit file should be updated and reviewed annually and includes documents you may need for long periods of time for reference.
What is a permanent file?
These letters are sent, typically during planning, to obtain direct communication from a third party in response to a request for information about the entity.
What is an audit confirmation?
Reduced control risk in an audit area may be achieved by performing this test
What is test of controls? (or operating effectiveness of controls)
The steps in this are tailored based on the risk assessment and guide the testing approach for an audit area. This should be reviewed prior to completing the workpapers to ensure that the testing addresses the current year risks instead of SALY.
What is an audit program?
The management representation letter template is in which National Assurance Resources binder.
What is the Forms & Letters Binder?
The chief operating fund which is always a major fund is the _________ _______.
What is a general fund?
When submitting confirmations to be completed by SIRT, this checklist-based workflow system is used.
What is XCM?
A dollar threshold that the auditor calculates in order to assist in determining the quantitative and qualitative aspects of errors or findinfs that would cause an entity’s financial statements to be misstated or incorrect to such an extent that they would be misleading.
What is materiality?
Substantive testing may be achieved through performing a test of details, _________ ________, or a combination of both.
What is analytical procedures?
This finding is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of the entity’s financial reporting.
What is a significant deficiency?
All non-federal government agencies that expend $750,000 or more in federal awards in a given fiscal year are required to obtain this.
What is a single audit?
This document is signed by the client, typically before beginning an audit, and includes information such as the scope of the audit services, audit objectives, auditor responsibilities, management responsibilities, limitations, and fees.
What is a Statement of Work?
A mathematical calculation worksheet that evaluates the total asset, liability, revenue, and expenditure/expense balances for each governmental and enterprise fund.
What is a major fund determination worksheet?
This group is not part of the client's internal control processes and should not be referenced within our documentation in AIS.
What are auditors (CLA)?
To receive a certificate of excellence in financial reporting, the entity must submit the Annual Comprehensive Financial Report to this organization.
What is the GFOA?
The "Yellow Book" report is an additional report required under these standards.
What is Generally Accepted Government Auditing Standards?
One of our overall objectives as an auditor is to obtain _____ ________ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, thereby enabling the auditor to express an ______ on whether the financial statements are prepared, in all material respects, in accordance with an applicable financial reporting framework.
Reasonable assurance; opinion
The risk assessment process assists the auditor in determining the ________, ________, and _______ of procedures to respond to the assessed risk of material misstatement at the relevant assertion level.
What is nature, timing, and extent?
The policies, procedures (both manual and automated), and activities that are designed and operated to ensure that risks are contained within the level that an organization is willing to accept, independent of any non-attest services that the auditor may provide.
What is internal controls?
Governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information are examples of the _____ ______.
What is an opinion unit?
The term for the financial statement that presents the inflows and outflows of financial resources, including cash and other assets that can be used to meet the government's obligations to creditors and other parties.
What is the Statement of Cash Flows?