is a systematic process by which a competent, independent person objectively obtains and evaluates evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users

Establishes the independent auditor's overall responsibilities when conducting an audit of financial statements.

Refers to the audit procedures deemed necessary in the circumstances to achieve the objective of the audit

The auditor should plan and perform an audit with what attitude?

A concept relating to the accumulation of the audit evidence necessary for the auditor to conclude that there are no material misstatements in the financial statements taken as a whole.

Risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.

Responsible for the preparation and presentation of the financial statements.

An audit approach that begins with an assessment of the types and likelihood of misstatement in account balances.

Initial susceptibility of a transaction or accounting adjustment to be recorded in error, or for the transaction not to be recorded in the absence of internal controls.

Risk that the client's internal control system will fail to prevent or detect a misstatement.

Risk that the audit procedures will fail to detect a material misstatement

involves establishing the overall audit strategy for the engagement and developing an audit plan, in order to reduce audit risk to an acceptably low level.

One of the most important assets of a business.One of the most important assets of a business.

Are short-term, highly liquid instruments that are both easily convertible to known amount of cash.

Applies to both initial and subsequent measurement ot an asset or liability

Relates more on subsequent measurement of depreciable, amortizable and depletable asset

Customarily prepared monthly by the client as part of it internal control over cash.

Normally prepared 8-10 business days after the reporting date.

Also called four-column bank reconciliation, is prepared to reconcile not only the account balance but also the account transactions occurring during a specified period

Irregularity whereby an overstatement of cash is created by a cash transfer between bank accounts.

A scheme which has the desire use some entit favorable current ratio may cause some entities to record cash disbursed in the first few days of a new accounting period as disbursements of the preceding period

Is done by misappropriating collections from one customer and concealing this defalcation by applying subsequent collection made fron another custoner.

Arise when bank balances are overdrawn.Arise when bank balances are overdrawn.

Standard medium of exchange and the basis of accounting measurements.

Includes collections awaiting deposit and other current funds held as of the reporting date.

Includes deposits in banks that are available for immediate withdrawal and unrestricted use.

the difference beetween the amount of line credit and the amount that was actually borrowed

Checks delivered to payees that are not encashed within a relatively long period of time, normally 6 nonchs or more.

cash is ____ when it meets the requirements for asset recognition and is available for unrestricted use in current operations.

cash is ____ when it fails to meet the Minimum assets for recognition

Minimum anount that must be maintained in an entity's bank account as support for funds borzowed from the bank.

Is a negative (credit balance) in the cash in bank account resulting from overpayment of checks in excess of the amount of deposit.