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16 Cards in this Set
- Front
- Back
commitments
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agreements that the entity will hold to a fixed set of conditions, such as the purchase or sale of merchandise at a stated price at a future date, regardless of what happens to profits or to the economy as a whole.
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completing the audit checklist
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a reminder to the auditor of aspects of the audit that may have been overlooked.
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contingent liability
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a potential future obligation to an outside party for an unknown amount resulting from activities that have already taken place.
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dual-dated audit report
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the use of one audit report date for normal subsequent events and a later date for one or more subsequent events that come to the auditor’s attention after the field work has been completed.
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financial statement disclosure checklist
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a questionnaire that reminds the auditor of disclosure problems commonly encountered in audits and that facilitates final review of the entire audit by an independent partner.
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independent review
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a review of the financial statements and the entire set of audit files by a completely independent reviewer to whome the audit team must justify the evidence accumulated and the conclusions reached.
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inquiry of the client's attorneys
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a letter from the client requesting that legal counsel inform the auditor of pending litigation or any othe rinformatio ninvolving legal counsel that is relevant to financial statement disclosure.
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letter of representation
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a written communication from the client to the auditor formalizing statements that the client ahs made about matter pertinent to the audit.
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management letter
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an optional letter written by the auditor to a client’s management containing the audit’r recommendations for improving any aspect of the client’s business.
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other information included in annual reports
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information that is not a part of the financial statements but is published with them; auditors must read this information for inconsistencies with the financial statements.
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review for subsequent events
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the auditing procedures performed by auditors to identify and evaluate subsequent events; also known as a post-balance-sheet-review.
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review of audit documentation
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a review of the completed audit files by another member of the audit firm to ensure quality and counteract bias.
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subsequent discovery of facts
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auditor discovery that the financial statements are materially misstated after they have been issued.
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subsequent events
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transactions and other pertinent events that occurred after the balance sheet date that affect the fair presentation or disclosure of the statements being audited.
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unadjusted misstatement audit schedule
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a summary of immaterial misstatements not adjusted at the time they were found, used to help the auditor assess whether the combined amount is material; also known as a summary of possible misstatements.
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unassertive claim
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a potential legal claim against a client where the condition for a claim exists but no claim has been filed.
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