(Blank) is the process conducted by the board of
directors to authorize, direct, and oversee management
toward the achievement of the organization's objectives.
a. risk management
d. strategic planning
Auditing has i
The most persuasive information regarding asset value of
newly acquired computers is
Inquiry of management.
B. Documentation prepared externally.
C. Observation of engagement's client's procedures.
D. Physical examination.
B. Documentation prepared ext
The approximations of financial statement numbers often
included in financial statements
Procedures that allow auditors to evaluate financial
information by studying relationships among both
financial and nonfina
An engagement in which a practitioner is engaged to issue
or does issue an examination, a review, or an agreed-upon
procedures report on subject matter, or an assertion about
the subject matter that is the responsibility of another
Sources of Government Auditing standards GAGAS (The
Generally Accepted Governement Audit Standards.
Desiging the audit to provide reasonable assurance of
detecting material misstatements resulting from
Audit Requirements for
Fraud consists of
knowingly making material misrepresentations of fact with
the intent of inducing someone to believe the falsehood
and act upon it and thus, suffer a loss or damage.
is the use of fraudulent means to take money or other
Purpose of an audit
To express an opinion
The risk that the auditors may unknowingly fail to
appropriately modify their opinion on financial statements
that are materially misstated
Audit Risk Equation
(inherent risk x control risk) x detection
Independent professional services that improve the quality
of info for decision makers; express written or oral
conclusion on reliability of info/system
CPA is engaged to issue a written communication that