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Audit and Assurance Terms

In: Business and Management

Submitted By toise
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Accounting — the recording, classifying, and summarizing of economic events in a logical manner for the purpose of providing financial information for decision making

Assurance service — an independent professional service that improves the quality of information for decision makers

Attestation service — a type of assurance service in which the CPA firm issues a report about a subject matter or assertion that is the responsibility of another party

Audit of historical financial statements — a form of attestation service in which the auditor issues a written report stating whether the financial statements are in material conformity with accounting standards

Audit report — the communication of audit findings to users

Auditing — the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria

Certified public accountant — a person who has met state regulatory requirements, including passing the Uniform CPA Examination, and has thus been certified; a CPA may have as his or her primary responsibility the performance of the audit function on published historical financial statements of commercial and noncommercial financial entities

Compliance audit — (1) a review of an organization’s financial records performed to determine whether the organization is following specific procedures, rules, or regulations set by some higher authority;
(2) an audit performed to determine whether an entity that receives financial assistance from the federal government has complied with specific laws and regulations

Evidence — any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria

Financial statement audit — an audit conducted to determine whether the overall financial statements of an entity are stated…...

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