Terms Used in GAGAS

1.27

This paragraph describes certain terms used in GAGAS. When terminology differs from that used at an organization subject to GAGAS, auditors use professional judgment to determine if there is an equivalent term.⁵

1.27a

1. Attestation engagement: An examination, review, or agreed-upon procedures engagement conducted under the GAGAS attestation standards related to subject matter or an assertion that is the responsibility of another party.

1.27b

2. Audit: Either a financial audit or performance audit conducted in accordance with GAGAS.

1.27c

3. Audit organization: A government audit entity or a public accounting firm or other audit entity that conducts GAGAS engagements.

1.27d

4. Audit report: A report issued as a result of a financial audit, attestation engagement, review of financial statements, or performance audit conducted in accordance with GAGAS.

1.27e

5. Audited entity: The entity that is subject to a GAGAS engagement, whether that engagement is a financial audit, attestation engagement, review of financial statements, or performance audit.

1.27f

6. Auditor: An individual assigned to planning, directing, performing engagement procedures, or reporting on GAGAS engagements (including work on audits, attestation engagements, and reviews of financial statements) regardless of job title. Therefore, individuals who may have the title auditor, information technology auditor, analyst, practitioner, evaluator, inspector, or other similar titles are considered auditors under GAGAS.

1.27g

7. Control objective: The aim or purpose of specified controls; control objectives address the risks related to achieving an entity’s objectives.

1.27h

8. Engagement: A financial audit, attestation engagement, review of financial statements, or performance audit conducted in accordance with GAGAS.

1.27i

1. Engagement team (or audit team): Auditors assigned to planning, directing, performing engagement procedures, or reporting on GAGAS engagements.

1.27j

10. Engaging party: The party that engages the auditor to conduct the GAGAS engagement.

1.27k

11. Entity objective: What an entity wants to achieve; entity objectives are intended to meet the entity’s mission, strategic plan, and goals and the requirements of applicable laws and regulations.

1.27l

12. External audit organization: An audit organization that issues reports to third parties external to the audited entity, either exclusively or in addition to issuing reports to senior management and those charged with governance of the audited entity.

1.27m

13. Internal audit organization: An audit organization that is accountable to senior management and those charged with governance of the audited entity and that does not generally issue reports to third parties external to the audited entity.

1.27n

14. Responsible party: The party responsible for a GAGAS engagement’s subject matter.

1.27o

15. Review of financial statements: An engagement conducted under GAGAS for review of financial statements.

1.27p

16. Specialist: An individual or organization possessing special skill or knowledge in a particular field other than accounting or auditing that assists auditors in conducting engagements. A specialist may be either an internal specialist or an external specialist.

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5. See the Glossary for an expanded list of terms used in GAGAS.↩︎