AuditCh5-terms

Opinion issued when the company has not maintained an effective internal control over financial reporting

a subcommittee of the board of directors that is generally composed of three to six "outside" members of the organization's board of directors

a report required by the Sarbanes-Oxley Act that provides an opinion on the effectiveness of the entity's internal control over financial reporting

those factors, events, and conditions that could prevent the organization from achieving its business objectives

specific actions taken by a client's management and employees to help ensure that management directives are carried out

the probability that an entity's controls will fail to prevent or detect erros and frauds that would otherwise have entered the system

a condition expressing whether controls would be expected to prevent or detect errors or fraud that could result in a material misstatement in the financial statements

activities that detect misstatement after they occur

situations in which auditors cannot provide assurance on the effectiveness of internal control over financial reporting; issued when a significant cope limitation exists

an audit procedure that can be used as both a test of controls and a substantive test

controls that are pervasive to the financial statements taken as a whole

computerized steps with the application software and related manual procedures to control the processessing of various types of transactions. Major categories of ITAC are input controls, processing controls, and output controls

Controls that apply to all application systems and help ensure their continued proper operations. Major categories of ITGC are hardware controls, program development controls, program change controls, computer operations controls, and access to programs and data controls

controls designed to provide reasonable assurance that data received for processing by the information-processing department have been authorized properly and converted into machine-sensitive form and that information has not been lost, suppressed, added, duplicated, or improperly changed

a process, effected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the reliability of financial reporting, the effectiveness and efficiency of operations, and compliance with applicable laws and regulations

a condition that exists when the design or operation of a control does not allow the entity's management or employees to detect or prevent misstatements in a timely fashion

a checklist of internal control-related questions used to gain and document an understandin of the client's internal control

a report required by the Sarbane-Oxley Act that states that management is responsible for establishing and maintaining adequate internal control over financial reporting, identifies the framework management uses to evaluate the effectiveness of the entity's internal control, and provides management's assessment of the effectiveness of the entity's internal control

a deficiency, or combination of deficiencies, that results in a reasonable possibility that a material misstatement would not be prevented or detected in a timely basis

audit documentation that describes the environmental elements, the accounting system, and the control activities in an entity's internal control

a condition expressing whether a control is operating as designed and whether the person performing the control possess the necessary authority and qualifications to perform the control effectively

the final check on the accuracy of the results of computerized processing and controls designed to ensure that only proper persons receive reports or have access to files produced by the system

activities that prevent misstatement before they occur

error-condition check routines written into the computer program

concept that recognizes that the costs of control activities should not exceed the benefits that are expected from the control activities

a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance

detail audit and analytical procedures designed to detect material misstatements in account balances and footnote disclosures

controls that relate to specific classes of transactions, account balances, and disclosures

issued when no material weaknesses in internal control over financial reporting are identified and no scope limitations on the audit of internal control exist

tracing one ore more transactions through the audit trail from initiation of the transaction to its inclusion in the financial statements