Term
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Definition
| Evaluations of financial information through analysis of plausible relationships among both financial and nonfinancial data. |
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Definition
| Controls that apply to the processing of specific computer applications and are part of the computer programs use in the accounting system. |
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Term
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Definition
| Expressed or implied representations by management that are reflected in the financial statement components. |
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Term
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Definition
| An external confirmation represents audit evidence obtained by the auditor as a direct written response to the auditor from a third party (the confirming party) in paper form or by electronic or other medium. |
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Term
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Definition
| Controls that relate to the overall information processing environment and have a pervasive effect on the entity's computer operations. |
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Term
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Definition
| The process of covering a cash shortage by applying cash from one customer's accounts receivable against another customer's accounts receivable. |
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Term
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Definition
| A confirmation request to which the recipient responds only if the amount or information stated is incorrect. |
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Term
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Definition
| A confirmation request to which the receipient responds whether or not he or she agrees with the amount or information stated. |
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Term
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Definition
| The auditor's decision to rely on the entity's controls, test those controls, and reduce the direct tests of the financial statement accounts. |
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Term
| Substantive Tests of Transactions |
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Definition
| Tests to detect errors or fraud in individual transactions. |
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Term
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Definition
| Audit procedures performed to test the operating effectiveness of controls in preventing or detecting material misstatements at the relevant assertion level. |
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Term
| Tests of Details of Account Balances and Disclosures |
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Definition
| Tests that concentrate on the details of amounts contained in an account balance and in disclosures. |
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Term
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Definition
| A transaction being traced by an auditor from origination through the entity's information system until it is reflected in the entity's financial reports. It encompasses the entire process of initiating, authorizing, recording, processing, and reporting individual transactions and controls for each of the significant processes identified. |
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