ACCT Exam 3 Vocabulary

the risk an entity will fail to meet its objectives

the probability that the information circulated by a company will be false or misleading

the lending of credibility to information

when the assurance is provided for specific assertions made by management

a systematic process involving obtaining and evaluating evidence about economic actions between managers and interested users

an auditor's tendency not to accept management assertions without corroboration, a tendency to ask management to "prove it" with evidence

the study of business operations for the purpose of making recommendations about the efficient and effective use of resources, effective achievement of business objectives and compliance with company policy

an independent, objective assurance and consulting activity that adds value to and improves an organizations operations

ensure that senior managment receives accurate and timely information concerning management and leadership throughout the organization as well as proper implementation and execution of company strategy and plans

designed to determine if the product meets the standards established by management

Auditors can review procedures, record keeping, liability issues, and compliance as they relate to environmental issues of the organization