Chapter 7

Information to which audit procedures have been applied that is used by the auditor in arriving at the conclusions on which the auditor's opinion is based.

An act the auditor performs during the course of an audit to comply with auditing standards.

List of audit procedures for an audit area or an entire audit, including the timing and extent of the tests.

The degree to which the auditor is convinced that the evidence provides a basis for the audit opinion; the two determinants of this are the appropriateness and sufficiency of the evidence.

A measure of the quality of evidence; appropriate evidence is relevant and relable in meeting audit objectives for classes of transactions, account balances, and related disclosures.

The extent to which evidence is believable or worthy of trust; evidence is more so when it is obtained (1) from an independent provider, (2) from an auditor's direct knowledge, (3) from qualified providers such as law firms and banks, (4) from a client with effective internal controls, (5) from objective sources, and (6) in a timely manner.

The quantity of evidence; proper sample size.

The auditor's inspection or count of an intangible asset.

The auditor's receipt of a direct written or electronic response from a third party verifying the accuracy of information requested.

The auditor's examination of documents and records, both internal and external, to substantiate the information that is or should be included in the financial statements.

A document, such as an employee time report, that is prepared and used within the client's organization.

A document, such as a vendor's invoice, that has been used by an outside party to the transaction being documented and that the client now has or can easily obtain.

The use of documentation to support recorded transaction amounts.

The use of documentation to determine whether transactions or amounts are included in the accounting records.

Significant unexpected differences indicated by analytical procedures between the current year's unaudited financial data and other data used in comparisons.

The obtaining of written or oral information from the client or an external party in response to specific questions during the audit.

The rechecking of a sample of the computations made by the client, including mathematical accuracy of individual transactions and amounts and the adding of journals and subsidiary records.

The auditor's independent tests of client accounting procedures or controls that were originally done as part of the entity's accounting and internal control system.

Looking at a process or procedure being performed by others.

Written records of the client's expectations for the period; a comparison of budgets with actual results may indicate whether or not misstatements are likely.

The science and art of discovering and analyzing patterns, identifying anomolies, and extracting other useful information in data underlying or related to the subkect matter of an audit through analysis, modeling, and visualization for purpose of planning or performing the audit.

Computers that perform routine, repetitive processes that are then used by the computer to learn or develope "intelligence" that allows them to recognize patterns and take actions automatically.

Emerging technologies whereby computers are programmed to automate processes, such as data entry and manipulation tasks common to many transaction cycles, using prescribed protocols and decision rules with high levels of precision and efficiency.

The use of statistical techniques that allow the computer to "learn" from the data to progressively improve the performance of a specific task.

Technologies where computers leverage advances in computational power and data storage that make it possible for machines to process reams of data in a manner than models the structure and thinking process of the human brain.

A method of examining and interpreting texts by analysing the content, style, structure, and tone.

Record of the audit procedures performed, audit evidence obtained, and conclusions the auditor reached.

Auditors' files that contain data of a historical or continuing nature pertinent to the current audit, such as copies of articles of incorporation, bylaws, bond indentures, and contracts.

All audit files applicable to the year under audit.

A listing of the general ledger accounts and their year-end balances.

An audit schedule that contains the detailed accounts from the general ledger making up a line item total in the working trial balance.

Detailed schedules prepared by the client or the auditor in support of specific amounts on the financial statements.

Symbols used on an audit schedule that provide additional information or details of audit procedures performed.