Audit 4 definitions

# Definition Sets
1 he/she hears 1 set
2 he/she/it hears 1 set
3 1. which audit procedures to use 2. what sample size to select for a given procedure 3. which items to select from the population 4. when to perform the procedures (timing) 1 set
4 scan the cash subsidiary ledger for material overdrafts evidence type: scanning asserrtion tested: accuracy, valuation 1 set
5 "frankel et al. (2002) - high nas fees = high das ashbaugh et al. (2003) - fjn wrong, no relation (except with negative das) kinney et al. (2004) - tax fees reduce likelihood of restatement, other services increase paterson & valencia (2011) - repeat tax fees lower, but one-time increase, some evidence of other fees also increasing likelihood of rs" 1 set
6 -obtain cut-off bank statements -cut-off statements usually cover about a ten-working day period immediately following year-end -trace deposits in transit from year-end reconciliations to cut-off statement -trace all cleared prior-year checks to list of outstanding checks -scan for large or unusual items -verify that checks dated after year-end are properly recorded in subsequent period 1 set
7 1. customer expectations and management perception of those expectations 2. management perceptions customer expectations and service-quality specifications 3. service quality and service actually delivered 4. customers' expectations of the service provider and their perceptions of provider delivery 1 set
8 1. gain an understanding of client 2. evaluate risk of misstatement (inherent risk) 3. evaluate client internal controls (control risk) 4. develop audit plan 1 set
9 stnd deviation is a measuer of variability which refers to the range of values within the population. sampling risk. variability = uncertainty = larger sampling size 1 set
10 1. "unqualified" opinion-good 2.qualified- didn't have access to some info 3. disclaimer- can't comment, can't issue an opinion 4. adverse- not good, possible fraud. not following accounting rules 1 set