Tashkent state university of Economics

Tashkent state university of Economics

Prepared by: Xaitova Nazima
Omonova Maxfuza
Izbaskanova Gulnaz
TASHKENT-2023

Terminologies in Audit

Internal Audit: An independent, objective assurance and consulting activity designed to add value and improve an organization's operations, risk management, and internal controls. External Audit: An examination conducted by an independent certified public accounting firm to provide an unbiased assessment of a company's financial statements and ensure compliance with applicable laws and regulations.

Audit Trail: A detailed record that provides evidence of the sequence of activities or transactions in a financial process, allowing the reconstruction of events and identification of potential errors or fraud.
Compliance Audit: An audit that focuses on evaluating an organization's adherence to laws, regulations, contractual obligations, and internal policies and procedures.

Fraud: Intentional deception or misrepresentation that results in an unauthorized and unfair advantage, causing harm or loss to others. Auditors look for indications of fraud during their examination.

Analytical Procedures: Evaluations and analysis of significant ratios, trends, and relationships in financial and non-financial data to understand the business, identify risks, and assess the reasonableness of financial information.
Management Representation Letter: A letter prepared by the management of the audited organization, containing written statements and acknowledgments regarding the accuracy and completeness of the information provided during the audit.
Materiality: The concept that focuses on determining the impact or significance of an item or event on a company's financial statements, and whether it would influence the decisions of the users of those statements.
Risk Assessment: The identification, analysis, and evaluation of potential risks that could impact business objectives, operations, or financial reporting, and the determination of appropriate actions to mitigate those risks.
An operational audit is a systematic and independent evaluation of an organization's operations, processes, and procedures to assess their efficiency, effectiveness, and compliance with internal policies and external regulations.
An audit report is a formal document issued by an auditor or auditing firm upon completion of an audit engagement. The report provides an independent and professional opinion on the fairness and accuracy of an entity's financial statements and accompanying disclosures.

Sampling refers to the process of selecting a subset or sample from a larger population for analysis or evaluation. In various fields, including statistics, research, and auditing, sampling is widely used as an efficient and practical approach when it is not feasible or necessary to examine every individual item or element within a population.

Sampling refers to the process of selecting a subset or sample from a larger population for analysis or evaluation. In various fields, including statistics, research, and auditing, sampling is widely used as an efficient and practical approach when it is not feasible or necessary to examine every individual item or element within a population.