semi-identification Flashcards
These are control system policies and procedures that relate to the overall computer information system
General Controls
It is the measure of the quality of audit evidence and its relevance to a particular assertion and its reliability
Appropriateness
This technique requires that the auditor write a program that simulates key features or processes of the program under review.
Parallel Simulation
Events or transactions that occur subsequent to the financial statement date that may affect the financial statements and the auditor’s report
Subsequent Events
Also known as “black box approach”
Auditing around the computer
This contains information of continuing significance to the auditor in performing recurring audits
Permanent File
These are policies and procedures that relate to specific use of the system.
Application Controls
those that provide further evidence of conditions that existed at the financial statement date.
Requiring Adjustment
It means an approximation of the amounts of an item in the absence of a precise means of measurement
Accounting Estimate
This is a sampling plan used to estimate a numerical measurement of a population such as peso value.
Variable Sampling
It is the maximum rate of deviations the auditor is willing to accept, without modifying the planned degree of reliance on the internal control.
Tolerable Deviation Rate
those that are indicative of conditions that arise after the financial statement date.
Requiring Disclosure
This is also called “white box approach”
Computer Assisted Audit Techniques (CAATS)
This technique is primarily designed to test the effectiveness of the internal control procedures which are incorporated in the client’s computer program.
Test Data
It refers to the possibility that the auditor’s conclusion, based on a sample may be different from the conclusion reached if the entire population were subjected to the same audit procedures
Sampling Risk
the primary source of information about litigation and claims.
Entity’s Management
This method of selecting sample involves determining a constant sampling interval and then selects the sample based on the size of that interval.
Systematic Selection
These are audit procedures designed to substantiate the account balances or to detect material misstatements in the financial statements
Substantive Test
It is the application of audit procedures to less than 100% of the items within an account balance or class of transactions such that all sampling units have a chance of selection.
Audit Sampling
Are those procedures done at the end of the audit that generally cannot be performed before the other audit work is complete.
Wrap-Up Procedures
This sample selection method gives each item in the population an opportunity to be selected; under this method, each peso is treated as one sampling unit
Value weighted selection
It refers to the information obtained by the auditor in arriving at the conclusions on which the audit opinion is based
Evidence
It refers to the amount of evidence that the auditor should accumulate.
Sufficiency
a fundamental principle in the preparation of the financial statements.
Going Concern Assumption
It is sometimes called stop-or-go sampling because after testing the sample, the auditor makes a decision of whether to stop or to go on with the sampling plan.
Sequential Sampling
When using this technique, the auditor creates dummy or fictitious employee or other
appropriate unit for testing within the entity’s computer system.
Integrated Test Facility
This is a sampling plan used to estimate the frequency of occurrence of a certain
characteristic in a population.
Attribute Sampling
This contains evidence gathered and conclusions reached relevant to the audit of a
particular year
Current File
It relates the timelines of evidence and its ability to satisfy the audit objective.
Relevance
It is the amount of misstatement that the auditor believes exists in the population.
Expected Misstatement
It refers to the risk that the auditor may draw incorrect conclusions about the account
balance or class of transactions because of human errors.
Non-Sampling Risk
When using this method, the sample is selected without following an organized or
structured technique.
Haphazard Selection
This form of sampling is most appropriate when no deviations are expected in the
population.
Discovery Sampling
It is the maximum amount of misstatement that the auditor will permit in the population.
Tolerable Misstatement
there is an ___ relationship between the expected misstatement and the sample size.
Direct
Tolerable deviation rate is __ related to the sample size
Inversely
37-38 Ordinarily, written representation is signed by the
Chief executive officer / Chief Financial officer
