- Industria: Accounting
- Number of terms: 7464
- Number of blossaries: 0
- Company Profile:
Internal control systems rely on separation of duties to reduce the chance of errors or fraud. Duties are incompatible if they should be separated for control. For example, one person should not be in a position to both embezzle funds and to hide the embezzlement by changing the recorded accountability.
Industry:Accounting
The risk of incorrect acceptance is the risk the sample supports the conclusion that the recorded balance is not materially misstated when it is materially misstated.
Industry:Accounting
The risk of incorrect rejection is the risk the sample supports the conclusion that the recorded balance is materially misstated when it is not materially misstated.
Industry:Accounting
In all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditors. This means freedom from bias, which is possible even when auditing one's own business (independence in fact). However, it is important that the auditor be independent in appearance (that others believe the auditor is independent).
Industry:Accounting
Consist of infrastructure (physical and hardware components), software, people, procedures (manual and automated), and data.
Industry:Accounting
The potential effectiveness of an entity's internal control is subject to inherent limitations. Human fallibility, collusion, and management override are examples.
Industry:Accounting
The susceptibility of a balance or transaction class to error that could be material, when aggregated with other errors, assuming no related internal controls.
Industry:Accounting
Computer controls designed to provide reasonable assurance that transactions are properly authorised before processed by the computer, accurately converted to machine readable form and recorded in the computer, that data files and transactions are not lost, added, duplicated or improperly changed, and that incorrect transactions are rejected, corrected and, if necessary, resubmitted on a timely basis.
Industry:Accounting
As an audit procedure, to scrutinise or critically examine a document. As part of a CPA firm's quality control system, to monitor the effectiveness of the system.
Industry:Accounting
A "dummy" unit (e.g., a department or employee) is established. Test (fictitious) transactions are posted to the dummy unit during the normal processing cycle. If test transactions are processed correctly that provides evidence that transactions of other units are processed correctly as well.
Industry:Accounting
