For each definition (or portion of a definition) in the first column, select the term that most closely applies. Each term may be used only once or not at all.

Definition (or Portion)

a. Representations by management that are communicated, explicitly or implicitly, i n the financial statements.

b. A description of the nature, timing, and extent of the audit procedures to be performed.

c. An estimate of the time required to perform each step in the audit.

d. The purpose of this document is to avoid misunderstandings between the auditors and the client.

e. The risk of material misstatement of an assertion about an account without considering internal control.

f . At the overall engagement level, this is the risk that the auditors may unknowingly fail to appropriately modify their opinion on financial statements that are materially misstated.

g. An identified risk that requires special audit consideration.

h. A risk that threatens management's ability to achieve the organization 's objectives.

Term

Audit plan

Assertions

Audit risk

Representation letter

Business risk

Control risk

Engagement letter

Inherent risk

Significant risk

Survival risk

Time budget