Ovlašteni revizor flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

IFRS 15 five-step model

Identify the contract, identify performance obligations, determine the transaction price, allocate it to the obligations, and recognise revenue when each obligation is satisfied, either over time or at a point in time.

IFRS 13 fair value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is an exit price.

Deferred tax temporary difference

A difference between the carrying amount of an asset or liability and its tax base that will give rise to taxable or deductible amounts in future periods. Deferred tax is recognised accordingly under IAS 12.

Croatian GAAP (HSFI) scope

Croatian Financial Reporting Standards apply to entrepreneurs not required to use IFRS. Large entities, public-interest entities and consolidated statements follow IFRS as adopted by the European Union.

Reasonable assurance

A high, though not absolute, level of assurance that the financial statements are free from material misstatement. It reflects the inherent limitations of an audit under ISA 200.

Five ethical principles

Integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. These are the fundamental principles of the IESBA Code and the Croatian Code of Ethics.

Modified opinion types

Under ISA 705: qualified opinion for material but not pervasive misstatement, adverse opinion for material and pervasive misstatement, and disclaimer when evidence is insufficient and the effect is material and pervasive.

Going concern material uncertainty

When a material uncertainty exists but the going concern basis is appropriate, the auditor includes an emphasis of matter paragraph without modifying the opinion, provided adequate disclosure is made.

Audit risk model

Audit risk equals inherent risk multiplied by control risk multiplied by detection risk. Detection risk is the auditor's lever and is inversely related to the assessed risks of material misstatement.

Performance materiality

An amount set below overall materiality to reduce to an appropriately low level the probability that uncorrected and undetected misstatements together exceed overall materiality for the financial statements.

COSO components

Control environment, risk assessment, control activities, information and communication, and monitoring activities. These five components structure the evaluation of internal control over financial reporting.

Mandatory substantive procedures

ISA 330 requires substantive procedures for each material class of transactions, account balance and disclosure, regardless of the assessed level of control risk, including tests of the closing process.

Evidence sufficiency and appropriateness

Sufficiency is the quantity of evidence; appropriateness is its relevance and reliability. External independent evidence is generally more reliable than internal or oral evidence.

External confirmation procedures

Under ISA 505, positive confirmations request a response in all cases, while negative confirmations ask for a reply only if the recipient disagrees and are used only in limited circumstances.

Written representations date

Under ISA 580, written representations are dated as near as practicable to, but not after, the date of the auditor's report. They do not substitute for other audit evidence.

Accumulated misstatements

ISA 450 requires the auditor to accumulate misstatements other than those clearly trivial, communicate uncorrected misstatements to those charged with governance, and obtain written representations on their effect.

Croatian profit tax rates

Corporate income tax is levied at 18 percent, with a reduced rate of 10 percent for taxpayers whose annual revenue does not exceed the statutory threshold set for the year.

Croatian VAT rates

The standard VAT rate is 25 percent, with reduced rates of 13 percent and 5 percent applying to specified supplies such as accommodation, certain food services, books and medicines.

VAT registration threshold

A taxable person whose turnover in a calendar year does not exceed EUR 60,000 may remain outside the VAT system; registration above that threshold is mandatory.

Transfer pricing documentation

Related-party transactions must be priced at arm's length. Taxpayers above statutory thresholds must prepare a master file and a local file documenting the pricing method used.

Minimum share capital

Under the Croatian Companies Act, a limited liability company requires at least EUR 2,500 of share capital, while a joint-stock company requires at least EUR 25,000.

Business judgment rule

Directors are protected when they act on an informed basis, in good faith and in the honest belief that the decision serves the company's best interests, without a conflict of interest.

Bankruptcy filing deadline

When grounds for bankruptcy exist, such as insolvency or over-indebtedness, the management board must file the petition within 21 days of the occurrence of those grounds.

Auditor appointment

The general meeting appoints the statutory auditor, who must be independent and registered with the Croatian Audit Public Oversight Committee and hold a valid licence.

Break-even point

The sales volume at which total contribution equals fixed costs, calculated as fixed costs divided by contribution per unit, or fixed costs divided by the contribution margin ratio in revenue terms.

WACC formula

Weighted average cost of capital equals the equity weight times cost of equity plus the debt weight times cost of debt times one minus the tax rate.

DuPont decomposition

Return on equity equals net profit margin multiplied by asset turnover multiplied by the equity multiplier, separating profitability, asset efficiency and financial leverage effects.

Relevant costing rule

Only future, incremental cash flows are relevant to a decision. Sunk costs and allocated fixed costs that do not change with the decision are excluded from the analysis.

IT general controls

Controls over access management, change management, IT operations, backup and recovery, and program development that support the reliable functioning of application controls across systems.

ISAE 3402 report types

A type 1 report covers the suitability of control design at a point in time; a type 2 report covers both design and operating effectiveness over a specified period.

Benford's law analysis

A data analytics technique testing whether the leading digits of a population follow the expected logarithmic distribution, used to flag unusual patterns such as potential fictitious or manipulated transactions.

Data extraction completeness

Before analysis, reconcile record counts and control totals between the source system and the extracted dataset, and document extraction parameters to confirm the population is complete.