E-mail/interpersonal messaging
An individual using a terminal, PC or an application can access a
network to send an unstructured message to another individual or group
of people.
Echo checks
Detects line errors by retransmitting data back to the sending device
for comparison with the original transmission.
Edit checks
Reasonableness, validity, limit, and completeness tests that
are programmed routines designed to check input data and processing
results for completeness, accuracy and reasonableness.
Edit controls
Detects errors in the input portion of information that is sent to
the computer for processing. The controls may be manual or automated
and allow the user to edit data errors before processing.
Editing
Editing ensures that data conform to predetermined criteria and enable
early identification of potential errors.
Effective internal control
Reasonable assurance that the entity's operational objectives
are achieved, that published financial statements are reliably prepared,
and applicable laws and regulations are complied with.
Effectiveness
Producing a desired outcome. An audit procedure is effective
if the evidence supports a correct conclusion.
Efficiency
Ratio of the audit evidence produced to audit resources used.
Electronic cash
Electronic form functionally equivalent to cash in order to make and
receive payments in cyber-banking.
Electronic Data Interchange
The use of communication between an entity and customers
or suppliers to transact business electronically. Purchase, shipping,
billing, cash receipt, and cash disbursements can be completed entirely
by exchanging electronic messages.
Electronic Data Processing
Processing of information by computer as opposed to handwritten
records.
Electronic signature
Any technique designed to provide the electronic equivalent of a handwritten
signature to demonstrate the origin and integrity of specific data.
Digital signatures are an example of electronic signatures
Electronic vaulting
A data recovery strategy that allows organizations to recover data
within hours after a disaster. It includes recovery of data from an
offsite storage media that mirrors data via a communication link.
Typically used for batch/journal updates to critical files to supplement
full backups taken periodically.
Embedded control performance
Deals with unexpected changes to data.
Embezzlement
Stealing or taking College property for an individual’s
own and personal use. It is the fraudulent appropriation of property
by an individual to whom it has been entrusted.
End-user computing
The ability of end users to design and implement their own information
system utilizing computer software products.
Engagement letter
A letter that represents the understanding about the engagement between
the client and the auditor. The letter identifies the financial statements
and describes the nature of procedures to be performed. It includes
an explanation of the objectives of the procedures, an explanation
that the financial information is the responsibility of the company's
management, and a description of the form of report.
Environment
The control environment is the attitude, awareness, and actions of
the board, management, owners, and others about importance of control.
It includes integrity and ethical rules, commitment to competence,
board or audit committee participation, organization structure, assignment
of authority and responsibility, and human resource policies and practices.
Environmental safety
Unlawful, unsafe, and improper activities circumventing the requirements
of applicable laws or College environment safety policies and procedures.
Failure to protect sensitive facilities from unsafe and unauthorized
physical, technical or electronic exploitation.
Error
Unintentional misstatement or omission in financial statements. Errors
may involve mistakes in gathering or processing accounting data, incorrect
estimates from oversight or misinterpretation of facts, and mistakes
in application of principles relating to amount, classification, presentation
or disclosure.
Error risk
The risk of errors occurring in the area being audited.
Evidence
The information an auditor gathers in the course of performing an
audit. Includes written and electronic information (such as checks,
records of electronic fund transfers, invoices, contracts, and other
information) that permits the auditor to reach conclusions through
reasoning. Evidence is relevant if it pertains to the audit objectives
and has a logical relationship to the findings and conclusions it
is used to support.
Examine
As an audit procedure, to examine something is to look at it critically.
Except for a qualified opinion
An auditor can qualify the audit opinion for both departures from
U.S. GAAP in the financial statements and for restrictions on the
scope of the audit. The opinion paragraph of the qualified report
is worded "In our opinion, except for..."
Exception reports
An exception report is generated by a program that identifies transactions
or data that appear to be incorrect. These items may be outside a
predetermined range or may not conform to specified criteria.
Execute
To carry out an internal control procedure, such as to sign and mail
a check after inspecting supporting documents.
Existence
Assertions about existence deal with whether assets or liabilities
exist at a given date. For example, management asserts that finished
goods inventories in the balance sheet are available for sale.
Expenditure
Cash paid or liability incurred.
Explicitly
Fully and clearly expressed, leaving nothing implied.
Exposure
The potential loss to an area due to the occurrence of an adverse
event.
