CH15 [Audit Reports for Financial Statement Audits] Flashcards
The range of accounts and transactions that the auditor evaluates, along with the amount of evidence that they gather, assessments of which accounts and transactions are material, as well as the critical areas where the auditor employed significant assumptions and made associated professional judgments.
Audit scope
An entity or business activity for which group or component management prepares financial information that is required by the applicable financial reporting framework to be included in the group financial statements.
Component
An auditor who performs work on the financial information of a component that will be used as audit evidence for the group audit. A ____________ may be part of the group engagement partner’s firm, a network firm of the group engagement partner’s firm, or another firm.
Component auditor
Any matter that was communicated or required to be communicated to the audit committee, relating to accounts or disclosures material to the financial statements, and involving especially challenging, subjective, or complex auditor judgment.
Critical audit matter
A paragraph included in the auditor’s report that is required by GAAS, or is included at the auditor’s discretion, and that refers to a matter appropriately presented or disclosed in the financial statements that, in the auditor’s professional judgment, is of such importance that it is fundamental to users’ understanding of the financial statements.
Emphasis-of-matter paragraph
All the components whose financial information is included in the group financial statements. A ________ always has more than one component.
Group
The audit of group financial statements.
Group audit
The audit opinion on the group financial statements.
Group audit opinion
The partner or other person in the firm who is responsible for the group audit engagement and its performance, and for the auditor’s report on the group financial statements that is issued on behalf of the firm.
Group engagement partner
Financial statements that include the financial information of more than one component. The term ________________ also refers to combined financial statements aggregating the financial information prepared by components that have no parent but are under common
control.
Group financial statements
Matters that, in the auditor’s professional judgment, was of most significance in the audit of the financial statements of the current period. ____________________ are selected from matters communicated to those charged with governance.
Key audit matter
After the audit report has been issued, the auditor may discover that an important audit procedure was not performed; these are called ___________________.
Omitted procedure
A paragraph included in the auditor’s report that is required by GAAS, or is included at the auditor’s discretion, and that refers to a matter other than those presented or disclosed in the financial statements
that, in the auditor’s professional judgment, is relevant to users’ understanding of the audit, the auditor’s responsibilities, or the auditor’s report.
Other-matter paragraph
A term used in the context of misstatements to describe the effects or the possible effects on the financial statements of misstatements that are undetected due to an inability to obtain sufficient appropriate audit evidence.
Pervasive
An explicit statement as to whether the financial statements are presented fairly.
Positive assurance
