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Key Auditing Terms and Definitions

1. True and fair view in auditing means that financial statements are free from material misstatements and faithfully represent the financial performance and position of an entity. 2. Window dressing can be used by companies and mutual funds to improve the appearance of their performance or liquidity when preparing financial statements. 3. An audit note book is prepared by audit staff to note any unclear queries found during an audit that require further clarification and explanation.

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13 views2 pages

Key Auditing Terms and Definitions

1. True and fair view in auditing means that financial statements are free from material misstatements and faithfully represent the financial performance and position of an entity. 2. Window dressing can be used by companies and mutual funds to improve the appearance of their performance or liquidity when preparing financial statements. 3. An audit note book is prepared by audit staff to note any unclear queries found during an audit that require further clarification and explanation.

Uploaded by

rehan69
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© All Rights Reserved
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Definitions syllabus auditing

1:True & fair view


True and fair view in auditing means that the financial statements are free from
material misstatements and faithfully represent the financial performance and
position of the entity
2:window dressing
Window dressing can be used by companies and mutual funds.
A company can use window dressing when preparing financial statements
to improve the appearance of its performance or liquidity
3:audit note book
A note book which is prepared by the audit staff to note down all the
uncleared queries which s/he may find in the course of audit and requires
further clarification and explanation is known as audit note book
4:auditor
a person who checks the financial records of a company or person to make
sure they are accurate
5:statutory report
the mandatory submission of financial and non-financial information to a
government agency
6:audit evidence
evidence obtained during a financial audit and recorded in
the audit working papers.
7:ICS
An internal control is a business practice, policy or procedure that is
established within an organization to create value or minimize risk.

8:verification process
Definition
9:internal check
A division of duties that does not permit one individual to carry out all stages of
a transaction. An internal check is intended to prevent fraud and minimize errors.
10:IAS
International Standards on Auditing (ISA) are professional standards for the
performance of financial audit of financial information.
11:substantive test
an audit procedure that examines the financial statements and supporting
documentation to see if they contain errors.
12:Error of omission
transaction that is not recorded
13:Clerical errors
a mistake made in copying or writing out a document.
14:sampling
15:SECP
The Securities and Exchange Commission of Pakistan (SECP) is the
financial regulatory agency in Pakistan whose objective is to develop a
modern and efficient corporate sector and a capital market based on sound
regulatory principles, in order to encourage investment and foster economic
growth and prosperity in Pakistan

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