Auditing Dictionary of Terms Auditing Dictionary of Terms The words defined in this dictionary all appeared in questions on the CPA exam, so they are worth knowing if you are studying exam. for the exam. 本字典中定义的单词均出现在注册会计师本字典中定义的单词均出现在注册会计师本字典中定义的单词均出现在注册会计师（（美国美国））的考试之中试之中，，如果您正在参与此项考试如果您正在参与此项考试，，那么您那么您值得一读值得一读值得一读。。
acceptance sampling is sampling to determine whether internal control compliance is greater than or less than the tolerable deviation rate.
accounting and review rvices are official pronouncements covering compilation and review engagements. Compilation is prenting in the form of financial statements information that is the reprentation of management (owners) without expressing assurance. Review is inquiry and analytical procedures to provide the accountant a basis for expressing limited assurance that there are no material modifications that should be made to the statements for them to be in conformity with U.S. generally accepted accounting principles or, if applicable, another comprehensive basis of accounting.
accounting data includes journals, ledgers and other records such as spreadsheets that support financial statements. It may be in computer readable form or on paper.
accounting estimate An approximation of a financial statement element. Accounting estimates are often included in historical financial statements becau measurement of some amounts is uncertain pending outcome of future events and relevant data about events that have occurred cannot be accumulated on a timely, cost-effective basis.
accounting principles are alternative ways of reporting and disclosing information in financial statements and related footnotes.
accounts receivable Debts due from customers from sales of products and rvices. Normally a current ast.
adjusting entries are accounting entries made at the end of an accounting period to allocate items between accounting periods.
adver An audit opinion that the financial statements as a whole are not prented in conformity with U.S. GAAP.
advisory rvices are a consulting rvice in which the CPA develops the findings, conclusions, and recommendations prented for client consideration
and decision making. This differs from attestation rvices where the CPA express a conclusion about reliability of a written asrtion that is the responsibility of another.
aggregate (aggregated) Constituting the whole. Aggregate expens include expens of all divisions combined for the entire year.
agreed-upon procedures An engagement where the client specifies procedures and the accountant agrees to perform tho procedures. An accountant may accept an engagement limited to applying agreed-upon procedures to financial statement elements, where the scope of the engagement is not sufficient to express an opinion on the elements, if the urs assume responsibility for sufficiency of the procedures, and u of the report is restricted to specified urs.
aicpa American Institute of Certified Public Accountants. The professional organization of CPAs in the U.S. It is a private organization of CPAs, not an arm of the government. Each state issues CPA certificates, not the AICPA. Since each state makes its own laws, each state could prepare and grade their own CPA examination. However, each state us the uniform CPA exam prepared and graded by the AICPA.
allocation Distribution according to a plan. Depreciation, amortization, and depletion are methods to
allocate a cost to periods benefited.
allowance for doubtful accounts A contra ast account with a credit balance ud to reduce the carrying amount of accounts receivable to net realizable value. The allowance balance is the estimated total of uncollectible accounts included in accounts receivable.
allowance for sampling risk The difference between a sample estimate and the projected population characteristic at a specified sampling risk. This allowance is also the difference between the expected error rate and the tolerable deviation rate.
analytical procedure A comparison of financial statement amounts with the auditor's expectation. An example is the comparison of actual interest expen for the year (a financial statement amount) with an estimate of what that interest expen should be. The estimate can be found by multiplying a reasonable interest rate times the average balance of interest bearing debt outstanding during the year (the auditor's expectation). If actual interest expen differs significantly from the expectation the auditor explains the difference in the working papers.
analyze Identify and classify items for further study.
anticipated Expected.
application control Programmed procedure in application software designed to ensure completeness and accuracy of information.
严格的英文approve To authorize. A manager authorizes a transaction by signing a voucher providing approval for the disburment.
ascertain An audit procedure to determine or to discover with certainty. For example, to ascertain the date on which an investment was purchad by examining source documents.
asrtion Management asrts financial statements are correct with regard to existence or occurrence of asts, liabilities or transactions, completeness of information in the financial statements, rights and obligations at a point in time, appropriate valuation or allocation, prentation, and disclosure.美剧收视率排行榜
bras是什么asss To determine the value, significance, or extent of.
budgetary
assd Determined. The level of control risk determined by the auditor, bad on tests of controls, is the assd level of control risk.
assurance The level of confidence one has in a proposition.
attest (attestation)report An attest engagement is one in which a practitioner is engaged to issue a written conclusion about the reliability of a written asrtion that is the responsibility of another party. A financial statement audit is one type of attestation.
attorney's letter is signed by the client's lawyer and addresd to the auditor. It is the auditor's primary means to corroborate information furnished by management about litigation, claims, and asssments.
attribute sampling The characteristic tested is a property that has only two possible values (an error exists or it does not).
audit adjustment, whether or not recorded by the entity, is a propod correction of the financial statements that may not have been detected except through audit procedures.
audit committee A committee of the board of directors responsible for oversight of the financial reporting process, lection of the independent auditor, and receipt of audit results.
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audit objective In obtaining evidence in support of financial statement asrtions, the auditor develops specific audit objectives in the light of tho asrtions. For example, an audit objective rel
ated to the completeness asrtion an auditor might develop for inventory balances is that inventory quantities include all products, materials, and supplies on hand.
audit planning is developing an overall strategy for the conduct and scope of the audit. The nature, extent, and timing of planning varies with the size and complexity of the entity, experience with the entity, and knowledge of the entity's business.
audit risk A combination of the risk that material errors will occur in the accounting process and the risk the errors will not be discovered by audit tests.
Audit risk includes uncertainties due to sampling (sampling risk) and to other factors (nonsampling risk).
auditing standards board Statements on Auditing Standards are issued by the auditing standards board, the nior technical body of the AICPA designated to issue auditing pronouncements.
authorize (authorization)To give permission for. A manager authorizes a transaction by signing a voucher providing authorization for the disburment.
backup A copy of a computer program or file stored parately from the original.
batch A t of computer data or jobs to be procesd in a single program run.
benford's law is a mathematical law that applies to any population of numbers derived from other numbers (such as the dollar amount of a sale, found by multiplying the quantity sold times the unit price). It holds that 30% of the time the first non-zero digit of this derived number will be one, and it will be a nine only 4.6% of the time. Benford's law is ud by auditors to identify fictitious populations of numbers.
bill of lading A document issued by a carrier to a shipper, listing and acknowledging receipt of goods for transport and specifying terms of delivery. blind trust A financial arrangement in which a person avoids possible conflict of interest by transferring financial affairs to a fiduciary who has sole ast management discretion. The person establishing the trust also gives up the right to information regarding the asts.在线网站翻译
cancel supporting documents To mark supporting documents as having been ud to support a transaction so the same documents can't be ud as support for a cond transaction. An example is stamping vouchers "paid" and marking them with the check number.
capitalized Recorded as an ast. A capitalized lea is in substance a purcha to the le. An a
st is recorded equal to the prent value of the lea payments, which is also recorded as a liability. Payments, partly interest and partly principal, are made on the lea liability. The lea ast is depreciated by the le as though it were legally owned by the le. caveat A warning or caution.
check digit A redundant digit added to a code to check accuracy of other characters in the code.
check register A listing of checks issued, normally in numeric quence and in order by date issued.
classification Arrangement or grouping. Asts and liabilities are normally classified as current or noncurrent.
collateralize To pledge property as curity (collateral) for a debt.
collusion A cret agreement between two or more parties for fraud or deceit.
comfort letter A letter written by the auditor to an underwriter of curities, which express an opinion about whether the audited financial statements and schedules in the registration statement comply as to form with applicable accounting requirements of the Act and related rules and regulations adopted by the SEC. The procedures to be performed are specified by the underwriter.
comparability Urs evaluate accounting information by comparison. Similar companies account for similar transactions in similar ways. Another goal is comparison of one company's information from one period to the next (consistency). Operating trends should not be disguid by changing accounting methods.
comparative Financial statements of a prior period shown with tho of the current period to aid in comparisons between periods.
compare (comparison) An audit procedure. The auditor obrves similarities and differences among similar items such as an account from one year to the next.
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compensating balance An offtting balance. A requirement by some banks that a borrower maintain a minimum balance in a checking or savings account as a condition of granting a loan. The offtting balance increas the effective interest rate to the bank since the net amount loaned is reduced but the interest paid is unchanged.
competence of an internal audit staff is a function of qualifications, including education, certification, and supervision. Competent audit evidence is valid and reliable
compile (compilation)A compilation is prenting in the form of financial statements information that is the reprentation of management without expressing assurance. Compilation of a financial projection is asmbling prospective statements bad on assumptions of a responsible party, reading the statements, considering appropriateness of prentation, and issuing a compilation report. No assurance is provided on the statements or underlying assumptions. The accountant need not be independent.
授权书英文completeness Asrtions about completeness deal with whether all transactions and accounts that should be prented in the financial statements are included. For example, management asrts that all purchas of goods and rvices are recorded and included in the financial statements. Similarly, management asrts that notes payable in the balance sheet include all such obligations of the entity.
compliance Following applicable rules or laws.
comprehensive basis of accounting A complete t of rules other than U.S. GAAP applied to all items in a t of financial statements. Examples include a
basis of accounting required by a regulatory agency, a basis of accounting the entity us for its inco
me tax return and the cash receipts and disburments basis.
computer controls Internal controls performed by computer (software controls) as oppod to manual controls. Also means general and application controls over the computer processing of data.
condend financial statements are prented in considerably less detail than complete financial statements.
confirm (confirmation)Communication with outside parties to authenticate internal evidence.
consignment Transfer of posssion but not title to goods. Title stays with the consignor, while the consignee has posssion.
consistency To achieve comparability of information over time, the same accounting methods must be followed. If accounting methods are changed from period to period, the effects must be disclod.
consulted Sought advice or information.
低碳生活英语作文consulting rvices performed by CPAs include consultations, advisory rvices, implementation rvices, product rvices, transaction rvices, and staff and support rvices.
contingency is an existing condition involving uncertainty as to possible gain (gain contingency) or loss (loss contingency) that will be resolved by future events. Estimates, such as the uful life of an ast, are not contingencies. Eventual expiration of the ast's utility is not uncertain.
continuing auditor is the auditor of the current year who also audited the financial statements of the client for the previous year.
continuing accounting significance Matters of continuing accounting significance are tho normally included in the permanent audit working paper file, such as the analysis of balance sheet accounts, and tho relating to contingencies. Such information from a prior year is ud by the auditor in the current year's audit and is updated each year.
control A policy or procedure that is part of internal control.
control environment is the attitude, awareness, and actions of the board, management, owners, and others about the importance of control. This includes integrity and ethical rules, commitment to competence, board or audit committee participation, organizational structure, assignment of authority and responsibility, and human resource policies and practices.
control policies and procedures Control activities are the policies and procedures that help ensure management directives are carried out. Thohurt locker
