Читать книгу Wiley Practitioner's Guide to GAAS 2017 - Flood Joanne M. - Страница 35

Source: AU-C 315.04

Assertions. Representations by management, explicit or otherwise, that are embodied in the financial statements as used by the auditor to consider the different types of potential misstatements that may occur.

Business risk. A risk resulting from significant conditions, events, circumstances, actions, or inactions that could adversely affect an entity's ability to achieve its objectives and execute its strategies, or resulting from the setting of inappropriate objectives and strategies.

Internal control. A process effected by those charged with governance, management, and other personnel that is designed to provide reasonable assurance about the achievement of the entity's objectives with regard to the reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations. Internal control over safeguarding of assets against unauthorized acquisition, use, or disposition may include controls relating to financial reporting and operations objectives.

Relevant assertion. A financial statement assertion that has a reasonable possibility of containing a misstatement or misstatements that would cause the financial statements to be materially misstated. The determination of whether an assertion is a relevant assertion is made without regard to the effect of internal controls.

Risk assessment procedures. The audit procedures performed to obtain an understanding of the entity and its environment (including the entity's internal control) to identify and assess the risks of material misstatement, whether due to fraud or to error, at the financial statement and relevant assertion levels.

Significant risk. An identified and assessed risk of material misstatement that, in the auditor's professional judgment, requires special audit consideration.