注册会计考试常见英语单词辅导（九）

151. Generalized audit software Packaged computer programs used on a variety of computers during audit field work to read computer files, select information, perform calculations, create data files and print reports in a format specified by the auditor.
152. Going concern assumption assumes the company will continue in operation long enough to realize its investment in assets through operations （as opposed to sale）. Presenting assets at historical cost is justified by assuming productive assets will be used rather than sold. This makes market values irrelevant and supports accounting methods which match the actual cost of an asset to periods benefited.
153. Government auditing standards A book issued by the comptroller general of the United States, sometimes called the "yellow book." Government Auditing Standards contains standards for audits of government organizations, programs, activities, and functions and of government assistance received by contractors, not-for-profit organizations, and other nongovernment organizations. These standards, which include designing the audit to provide reasonable assurance of detecting material misstatements resulting from noncompliance with provisions of contracts or grant agreements that have a direct and material effect on determination of financial statement amounts, are to be followed when required by law, regulation, agreement, contract, or policy. For financial audits, Government Auditing Standards prescribes fieldwork and reporting standards beyond those required by GAAS.
154. Gross margin percentage The gross margin from an income statement divided by net sales revenue.
155. Hard copy A printed copy of information as opposed to information stored in computer readable form.
156. Hardware A computer and associated physical equipment involved in data-processing or communications functions as opposed to software or computer programs that provide instructions the computer follows.
157. Hardware control Computer controls built into physical equipment by the manufacturer.
158. Hash total A control total which has no meaning in itself other than for control, e.g., total social security numbers of employees paid.
159. hedges protect an entity against the risk of adverse price or interest-rate movements on its assets, liabilities, or anticipated transactions. A hedge is used to avoid or reduce risks by creating a relationship by which losses on positions are counterbalanced by gains on separate positions in another market.
160. Image processing systems use scanning to convert documents into electronic images to facilitate storage. Reference and source documents may not be retained after conversion.
161. Immaterial Of no importance. Something in financial statements that will not change decisions of investors.
162. Implicitly Implied or understood even though not directly expressed.
163. Implied control performance
164. Deals with expected changes to data.
165. Incompatible duties Internal control systems rely on separation of certain duties to reduce the chance of errors or fraud. Duties are incompatible if they should be separated for control. For example, one person should not be in a position to both embezzle funds and to hide the embezzlement by changing the recorded accountability.
166. Incorrect acceptance The risk of incorrect acceptance is the risk the sample supports the conclusion that the recorded balance is not materially misstated when it is materially misstated.
167. Incorrect rejection The risk of incorrect rejection is the risk the sample supports the conclusion that the recorded balance is materially misstated when it is not materially misstated.
168. Independent In all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditors. This means freedom from bias, which is possible even when auditing ones own business （independence in fact）. However, it is important that the auditor be independent in appearance （that others believe the auditor is independent）.
169. Information systems consist of infrastructure （physical and hardware components）, software, people, procedures （manual and automated）, and data.
170. Inherent limitation The potential effectiveness of an entitys internal control is subject to inherent limitations. Human fallibility, collusion, and management override are examples.
171. Inherent risk The susceptibility of a balance or transaction class to error that could be material, when aggregated with other errors, assuming no related internal controls.
172. Input control Computer controls designed to provide reasonable assurance that transactions are properly authorized before processed by the computer, accurately converted to machine readable form and recorded in the computer, that data files and transactions are not lost, added, duplicated or improperly changed, and that incorrect transactions are rejected, corrected and, if necessary, resubmitted on a timely basis.
173. Inquire （inquiry）
174. Ask questions of client personnel.
175. Inspect （inspection） As an audit procedure, to scrutinize or critically examine a document. As part of a CPA firms quality control system, to monitor the effectiveness of the system.
176. Integrated test facility A "dummy" unit （e.g., a department or employee） is established. Test （fictitious） transactions are posted to the dummy unit during the normal processing cycle. If test transactions are processed correctly that provides evidence that transactions of other units are processed correctly as well.
177. Integrity Consistent adherence to an ethical code. If client management lacks integrity the auditor must be more skeptical than usual.
178. Interim audit procedures are done during the year under audit, before year end.
179. Interim financial information is financial statements of a time period of less than a full year.
180. Internal auditors are employees of the client. They are responsible for providing analyses, evaluations, assurances, recommendations, and other information to the entitys management and board. An important responsibility of internal auditors is to monitor performance of controls.
181. Internal control Policies and procedures designed to provide reasonable assurance that specific entity objectives will be achieved. It consists of: the control environment, risk assessment, control activities, information and communications, and monitoring.
182. Internal control questionnaire A list of questions about the existing internal control system to be answered （with answers such as yes, no, or not applicable） during audit field work. The questionnaire becomes part of the audit working papers used to document the auditors understanding of the clients internal controls.
183. Internal control weakness A defect in the design or operation of internal controls. A material weakness is a reportable condition which does not reduce to a relatively low level the risk that material errors or fraud would not be detected in a timely manner by employees in the normal course of their duties.
184. Introductory paragraph The first paragraph of the auditors standard report which identifies the financial statements audited, states that the financial statements are the responsibility of management and that the auditors responsibility is to express an opinion on the financial statements based on the audit.
185. Inventory tag A tag attached to inventory items that identifies the inventory items to aid in counting the physical inventory.
186. Inverse The opposite or reverse. An inverse relationship between two variables means that when one increases the other decreases.
187. Investee The company in which an investment is held. Often used to describe an equity method investment, in which the investor reports a share of the investees net income.
188. Invoice An itemized list of goods shipped or services rendered with costs.
189. Isb
190. Independence standards board.
191. Journal A book of original entry in a double-entry system. The journal lists all transactions and indicates the accounts to which they are posted.
192. Just-in-time An inventory system that attempts to minimize inventory costs that do not add value for the customer. It arranges for suppliers to deliver small quantities of raw materials just before those units are needed in production. Storing, insuring, and handling raw materials are costs that add no value to the product, and so are minimized in a just in time system.
193. Kiting Drawing a bank check on insufficient funds to take advantage of the time interval required for collection.
194. Lapping A scheme to cover an embezzlement by using payments made by one customer to reduce the receivables balance of another customer.
195. Lead schedule The schedule at the beginning of a section of audit working papers that summarizes the detailed schedules.
196. Lifo
197. “Last In First Out” inventory cost flow.
198. Limit test （limit check） . A computer program step that compares data with predetermined limits as a reasonableness test （hours worked over 60 per week）.
199. Liquidity The availability of cash or ability to obtain it quickly. Debt paying ability.
200. Lockbox Also called a bank lockbox. A system used to speed the availability of funds from cash collections by reducing the time from the customer mailing the check until the funds are available to spend. Remittances are sent to a bank near the customer and the bank deposits funds speedily to the payees account.
201. Management controls
202. Are controls performed by one or more managers.
203. Management representation letter A letter addressed to the auditor, signed by the clients chief executive office and chief financial officer. During an audit, management makes many representations to the auditor. Written representations from management in the letter confirm oral representations given to the auditor, document the continuing appropriateness of such representations, and reduce the possibility of misunderstanding.
204. Manual controls
205. Are controls performed manually, not by computer.
206. Material
207. （Materiality） Information important enough to change an investors decision. Insignificant information has no effect on decisions, so there is no need to report it. Materiality includes the absolute value and relationship of an amount to other information.
208. Material weakness A condition in which internal controls do not reduce to a relatively low level the risk that material errors or fraud may occur and not be detected in a timely period by employees in the normal course of their duties.
209. Memos Written records supporting journal entries. Credit memos support credits, while debit memos support debit entries.
210. Misappropriate To embezzle or appropriate dishonestly for ones own use.
211. Misstatement Stated wrongly or falsely. Untrue financial statement information.
212. Mitigating
213. Reducing in force or intensity.
214. Narrative A written description of an internal control system.
215. Negative assurance A statement of what the CPA does not know as opposed to a statement as to what the CPA believes （positive assurance）. A statement that the CPA was "not aware of material modifications that should be made to financial statements for them to conform with U.S. generally accepted accounting principles" is negative assurance used in review reports.
216. Negative confirmation request The negative form of accounts receivable confirmation asks the clients customer to respond only if the customer disagrees with the balance determined by the client. The positive form asks the customer to respond whether the customer agrees or disagrees with the clients receivable balance. The negative form is used when controls over receivables are strong and accounts receivable consists of many accounts with small balances. The positive form is used when controls are weak or there are fewer, but larger, accounts.
217. Nonsampling risk is audit risk not due to sampling. An auditor may apply a procedure to all transactions or balances and fail to detect a material misstatement. Nonsampling risk includes the possibility of selecting audit procedures that are not appropriate to achieve a specific objective. For example, confirming recorded receivables cannot reveal unrecorded receivables. Nonsampling risk can be reduced to a negligible level through adequate planning and supervision.
218. Objective
219. A goal.
220. Objectivity The internal auditors objectivity depends on the organizational status of the internal audit function, whether the internal auditor has direct access and reports regularly to the board, the audit committee, or owner-manager, and who oversees internal auditor employment decisions.
221. Obligations Assertions about obligations deal with whether liabilities are obligations of the entity at a given date. For example, management asserts that amounts capitalized for leases in the balance sheet represent the cost of the entitys rights to leased property and that the corresponding lease liability represents an obligation of the entity.
222. Obliterate
223. To do away with something so as to leave no trace.
224. Observe （observation） Watch and test a client action （such as taking inventory）.
225. Occurrence Assertions about occurrence deal with whether recorded transactions have occurred during a given period. For example, management asserts that sales in the income statement represent the exchange of goods or services with customers for cash or other consideration.
226. Online Access to a computer for immediate processing without having to wait for a batch of transactions to be processed at a later time.
227. Operating effectiveness How an internal control was applied, the consistency with which it was applied, and by whom.
228. Operating income from continuing operations is reported on an income statement.
229. Opinion A CPAs conclusion held with confidence but not substantiated by positive knowledge or proof.
230. Opinion paragraph The paragraph in the audit report that expresses the auditors conclusions. The wording of the standard, unqualified opinion paragraph is: "In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of XYZ Company at December 31, year A, and the results of its operations and its cash flows for the year then ended in conformity with U.S. generally accepted accounting principles."