Access controls—Procedures designed to restrict access to on-line terminal devices, programs and data. Access controls consist of “user authentication” and “user authorization.” “User authentication” typically attempts to identify a user through unique logon identifications, passwords, access cards or biometric data. “User authorization” consists of access rules to determine the computer resources each user may access. Specifically, such procedures are designed to prevent or detect: •
Unauthorized access to on-line terminal devices, programs and data;
Entry of unauthorized transactions;
Unauthorized changes to data files;
The use of computer programs by unauthorized personnel; and
The use of computer programs that have not been authorized.
*Accounting estimate—An approximation of a monetary amount in the absence of a precise means of measurement. This term is used for an amount measured at fair value where there is estimation uncertainty, as well as for other amounts that require estimation. Where ISA 540 2 addresses only accounting estimates involving measurement at fair value, the term “fair value accounting estimates” is used. *Accounting records—The records of initial accounting entries and supporting records, such as checks and records of electronic fund transfers; invoices; contracts; the general and subsidiary ledgers, journal entries and other adjustments to the financial statements that are not reflected in formal journal entries; and records such as work sheets and spreadsheets supporting cost allocations, computations, reconciliations and disclosures. Agreed-upon procedures engagement—An engagement in which an auditor is engaged to carry out those procedures of an audit nature to which the auditor and the entity and any appropriate third parties have agreed and to report on factual findings. The recipients of the report form their own conclusions from the report by the auditor. The report is restricted to those parties that have agreed to the procedures to be performed since others, unaware of the reasons for the procedures may misinterpret the results. *
Denotes a term defined in the ISAs
Denotes a term defined in ISQC 1
In the case of public sector engagements, the terms in this glossary should be read as referring to their public sector equivalents.
Where accounting terms have not been defined in the pronouncements of the International Auditing and Assurance Standards Board, reference should be made to the Glossary of Terms published by the International Accounting Standards Board.
ISA 540, Auditing Accounting Estimates, Including Fair Value Accounting Estimates, and Related Disclosures
GLOSSARY OF TERMS 1
GLOSSARY OF TERMS
*Analytical procedures—Evaluations of financial information through analysis of plausible relationships among both financial and non-financial data. Analytical procedures also encompass such investigation as is necessary of identified fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount.
Annual report—A document issued by an entity, ordinarily on an annual basis, which includes its financial statements together with the auditor’s report thereon. *Anomaly—A misstatement or deviation that is demonstrably not representative of misstatements or deviations in a population.
Applicable criteria (in the context of ISAE 3410 3)—The criteria used by the entity to quantify and report its emissions in the GHG statement.Applicable criteria (in the context of ISAE 3420 4)—The criteria used by the responsible party when compiling the pro forma financial information. Criteria may be established by an authorized or recognized standard-setting organization or by law or regulation. Where established criteria do not exist, they will be developed by the responsible party.
*Applicable financial reporting...
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