Chapter 11: Auditing of Governmental and Not-for-profit Organizations

These flashcards cover key terms and concepts related to the auditing of governmental and not-for-profit organizations, as discussed in the lecture.

Financial audit

An evaluation of financial statements to assess their fair presentation in accordance with a financial reporting framework.

Generally Accepted Auditing Standards (GAAS)

A set of guidelines outlining the responsibilities and minimum standards for auditors to ensure quality audits.

Materiality

The significance of an amount, transaction, or discrepancy that could influence the decision of users of financial statements.

Unmodified opinion

An auditor's opinion that the financial statements present a true and fair view in accordance with GAAP.

Single Audit Act

Legislation that requires a single audit of federal funds at the organizational level to simplify the auditing process.

GAGAS

Generally Accepted Government Auditing Standards, which are principles that govern the conduct and reporting of government audits.

Nonaudit services

Services provided by an auditor that are not related to the audit, which must be scrutinized for potential independence threats.

Public interest

The responsibility of auditors to act in a manner that benefits the general public and maintains trust in financial reporting.

Independence

The quality of an auditor's ability to remain objective and impartial when conducting audits.

Audit finding

A conclusion reached by an auditor regarding deficiencies or issues identified during the audit process.