5 Terms
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Auditing
The systematic review and examination of an individual's or organization’s accounting records to verify their accuracy.
Industry: Accounting
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Auditing
incompatible duties
Accounting; Auditing
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 ...
incorrect acceptance
Accounting; Auditing
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.
incorrect rejection
Accounting; Auditing
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.
independent
Accounting; Auditing
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 ...
information systems
Accounting; Auditing
consist of infrastructure (physical and hardware components), software, people, procedures (manual and automated), and data.
inherent limitation
Accounting; Auditing
The potential effectiveness of an entity's internal control is subject to inherent limitations. Human fallibility, collusion, and management override are examples.
inherent risk
Accounting; Auditing
The susceptibility of a balance or transaction class to error that could be material, when aggregated with other errors, assuming no related internal controls.
