CH 1 Flashcards
Define Evidence
used by the auditor to determine whether the infomation being audited is stated in established criteria
What are forms of evidence
transactions, client testimony, written and electronic communications with outsiders, and observations
Define Auditing
is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence by a competent and independent person
How does a person evaluate with a proper conclusion
evaluation of evidence depends on competence and judgement and experience including independence
How do you reduce information risks?
User verifies information, shares information risk with management, and audited financial statement are provided
Define information risks
the information was inaccurate upon making business risk decision.
What causes information risks?
remoteness of info ( misstated info from others)
Biases and motives of provider ( goals of the inconsistent to the decision maker)
Voluminous data ( info that is insiginficant to decision maker that grows in proportion into a problem)
Complex exchange transactions ( from lack of accountability in transactions that lead to complex problems)
Define Assurance services
An independent professional service
it can be CPAs or other professionals
Define Attestation services
A type of assurance service that is made by another party
What are the five categories of attestation services
1) Audit of historical financial statements
2) Audit of internal control over financial reporting
3) Attestation services on information technology
4) review of historical financial statements
5) other attestation services that are subjective
What are the types of audits
1) operational
2) Compliance
3) Financial Statement
What are the types of auditors?
1) CPA
2) Governmental accountability office auditors
3) Internal revenue agents
4) Internal auditors
