Advanced Auditing Assurance & Professional Ethics Lecture Notes

These flashcards cover key terminology and concepts in advanced auditing, assurance, and professional ethics drawn from lecture notes.

SQC 1

Quality Control for Firms, outlining ethical requirements for audits and assurance services.

Code of Ethics

A set of principles establishing fundamental principles of professional ethics for auditors.

Fundamental Principles

Includes Integrity, Objectivity, Professional competence and due care, Confidentiality, and Professional behaviour.

Independence Requirement

Conditions that must be communicated within the firm to ensure auditors can act independently.

Engagement Partner Rotation

Mandatory requirement to rotate engagement partners after a maximum period of 7 years.

Acceptance and Continuance Policies

Guidelines for firms to ensure they consider client integrity, competence, and ability to comply with ethical requirements.

Peer Review Board

A board for review and assessment of compliance with auditing standards, constituted by the ICAI.

Quality Review Board (QRB)

Established by the Central Government to make recommendations for service quality and guide ICAI members.

National Financial Reporting Authority (NFRA)

An authority for enforcing compliance and overseeing the quality of services provided by auditors of certain companies.

Material Misstatement

A misstatement that has significant consequences for the financial statements being audited.

Written Representations

Statements obtained from management affirming certain conditions about the financial statements.

SA 200

Addresses overall objectives of independent auditors and their responsibilities related to audit performance.

SA 250

Guides auditors in considering laws and regulations relevant to the audit of financial statements.

Risk of Material Misstatement (ROMM)

The risk that the financial statements contain a misstatement that could influence the economic decisions of users.

Analytical Procedures

Evaluations of financial information through analysis of plausible relationships among financial and non-financial data.

External Confirmation

A procedure to obtain audit evidence from third parties concerning account balances or transactions.

Audit Evidence

Information used by the auditor to arrive at conclusions on which the audit opinion is based.

Joint Audit

Audit performed by two or more auditors to reach a consensus on the audit report.

Materiality

The principle that involves the importance of financial statement misstatements to influence users' decisions.

Internal Auditor

An auditor employed by the entity being audited to examine and improve internal controls and compliance.

Management's Expert

A specialist whose work is relied upon by the auditor to obtain audit evidence regarding an accounting estimate.