AuditingCh2

a report stating that the financial statements are not presented in conformity with GAAP; the opposite of an unqualified report

appropriateness relates to the quality (relevance and reliability) of audit evidence

circumstances in which an accountant's name is used in connection with the financial statements or an accountant has prepared the statements, even if the accountant's name is not used in any written report

a general set of standards intended to guide attestation work in areas other than audits of financial statements

the date on which auditors have gathered sufficient appropriate eveidence on which to base the opinions on the financial statements and internal control over financial reporting; this is the date used on the auditors' report

specialized actions auditors take to obtain evidence in an engagement

a list of audit procedures auditors need to perform to gather sufficient appropriate evidence on which to base their opinion on the financial statements

auditor quality guides that remain the same through time and for all audits

the probability that a material misstatment (error or fraud) will not be prevented or detected on a timely basis by the entity's internal controls

instance in which the entity's financial statments (or elements withing those financial statements) are materially misstated and do not present the entity's financial condition, results of operations, and cash flows in conformity with GAAP

the risk that the audit team's procedures will fail to detect a material misstatement

auditors explicitly state that they give no opinion and no assurance on the fair presentation of the financial statements in accordance with GAAP

a level of performance that would be exercised by reasonable auditors in similar circumstances; auditors are expected to possess the skills and knowledge of others in their profession and are not expected to be infallible

an internal evaluation of the significant judgements made by the audit team and the conclusions reached in formulating its report

the information used by auditors in arriving at the conclusion on which the audit opinion is based

documentary evidence obtained directly from independent external sources

documentary evidence that is originated outside the client's information processing system but that has been received and processed by the client

a set of criteria used to determine the measurement, recognition, presentation, and disclosure of material items in teh financial statements

standards that identify the requirements for the preparation and presenation of financial statments and accompanying footnote disclosures

standards that identify necessary qualifications and characteristics of auditors and guide the conduct of the audit examination

the extent to which others (particularly financial statement users) perceive auditors to be independent

auditors' mental attitutde and impartiality with respect to the client

the probability that a material misstatement (error or fraud) will occur

an evaluation of an accounting firm's audit engagements and system of quality control conducted by the PCAOB. Inspections are required for any firms providing auditing services to public entities

an entity's capability to prevent or detect material accounting erros or frauds and provide for ther correction on a timely basis

documents that are produced, circulated, and maintained within the client's information system

written assertions provided by management to auditors on matters such as the fairness of the entity's financial statements, availability of all financial records and related data, internal control over financial reporting and other specific representations abou tht financial statements and accounts

as it relates to financal reporting, the dollar amount that would influence the lending or investing decisions of financial statement users

a sutdy of a firm's quality control policies and procedures, followed by a report on the quality of the firm's audit practice in accordance with its system of quality control. Peer reviews are conducted through the AICPA's Center fro Public Company Audit Firms peer Review Program and are generally performed for firms that do not audit public entities

the applicaiton of relevant training, knowledge, and experience in making informed decisions about appropriate courses of action during the audit engagement

a state of mind that is characterized by appropriate questioning and a critical assessment of audit evidence

an auditor's report issued when the financial statements contain departures from GAAP or the audit examination was not conducted in accordance with GAAS

concept that a GAAS audit may not detect all material misstatements and auditors are not "insurers" or "guarantors" regarding the fairness of the company's financial statements

the combined probability that a material misstatement (error or fraud) will occur and not be prevented or detected on a timely basis by the entity's internal controls

situation in which auditors are unable to obtain sufficient evidence regarding the fairness of the entity's financial statements

procedures used by auditors to obtain assurance as to the fairness of the entity's financial statements

sufficiency relates to the quantity of audit evidence (the number of transactions or components evaluated)

policies an procedures implemented by firms to provide the firm with reasonable assurance that the firm and its personnel (1) comply with professional standards and applicable regulatory and legal requirements and (2) issue reports that are appropriate in the circumstances

a "clean" report that makes no mention of accounting or auditing deficiencies. The conclusion of an unqualified report is that the financial statements present the financial condition, results of operations, and cash flows in accordance with GAAP

responses to audit inquiries provided by the client's officers, directors, owners, and employees