Day 10 Flashcards
Define: “CRIME”
Control Environment
Risk Assessment
Info & Communication Systems
Monitoring
Existing Control Activities
Component of Internal Control: Internal Auditors
Monitoring
Component of Internal Control: HR
Control Environment
Component of Internal Control: Recording the proper monetary value of transactions
Info & Communication
Component of Internal Control: Participation of an Audit Committee
Control Environment
Ethical Principals of The Government Office of Accountability (five)
- Serving the public interest
- Integrity - auditor has an attitude of objectivity & fact based reasoning
- Objectivity - Independence of mind
- Proper use of government info
- Professional Behavior - honest effort in performance
Define: Tolerable Deviation Rate
= Tolerable mistakes = Risk of Misstatement
What is the relationship between Risk of Assessing Control Risk Too Low and Sample Size?
INVERSE
Less Risk = More Sample Size
Accept More Risk = Less Sample Size
What is the relationship between Tolerable Deviation Rate and Sample Size?
INVERSE
Less Deviation = More Sample Size
More Deviation = Less Sample Size
What is the relationship between Expected Deviation Rate and Sample Size?
DIRECT
Less Deviation = Less Sample Size
More Deviation = More Sample Size
What is the primary objective of Probability Proportional to Sample Size (PPS)?
A method designed to estimate OVERSTATEMENT Errors, ZERO Balances, NEGATIVE Balances, and UNDERSTATED Balances
When to use an Emphasis-of-Matter ¶?
“GAASP”
Gzoing Concern
Acctg principal change = justified
Audit Opinion change = Subsequent Events
Special
Purpose Framework
Attestation Engagements
“CAPE CORP”
Compliance
Acceptance & Continuance of Client relationship
Preconditions = independent, Acctg takes responsibility of subject matter and it is appropriate
Engagement document standards
Change of engagement
Others work = ok
Responsibility of quality
Professional Skepticism
