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Unformatted text preview: services
and ﬁnancial statement audits.
Attest. A service when a practitioner is engaged to issue or does issue a report on
subject matter, or an assertion about subject matter, that is the responsibility of
another party. Encompasses ﬁnancial statement audits.
Audit evidence. All the information used by the auditor in arriving at the conclusions on which the audit opinion is based. Audit evidence includes the information contained in the accounting records underlying the ﬁnancial statements,
as well as other information.
Audit risk. The risk that the auditor expresses an inappropriate audit opinion
when the ﬁnancial statements are materially misstated.
Auditing. A systematic process of (1) objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the
degree of correspondence between those assertions and established criteria and
(2) communicating the results to interested users.
Financial statement assertions. Expressed or implied representations by management that are reﬂected in the ﬁnancial statement components.
Information asymmetry. The concept that the manager...
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This note was uploaded on 12/08/2012 for the course ACCT 564 at Washington University in St. Louis.