Kazakhstan Auditor Attestation flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Audit risk model
- Audit Risk = Inherent Risk × Control Risk × Detection Risk. The auditor controls detection risk through the nature, timing, and extent of audit procedures.
- Performance materiality
- An amount set below overall materiality to reduce to an appropriately low level the probability that uncorrected and undetected misstatements exceed overall materiality.
- Reasonable assurance
- A high but not absolute level of assurance that the financial statements are free from material misstatement, forming the basis of the auditor's opinion.
- Modified opinion types
- Qualified opinion (material but not pervasive misstatement), adverse opinion (material and pervasive), disclaimer of opinion (inability to obtain sufficient appropriate evidence).
- IFRS 15 five steps
- Identify the contract, identify performance obligations, determine the transaction price, allocate it to obligations, and recognize revenue when each obligation is satisfied.
- IFRS 16 lessee model
- Lessees recognize a right-of-use asset and a lease liability measured at the present value of lease payments, with exemptions for short-term and low-value leases.
- Recoverable amount
- Under IAS 36, the higher of an asset's fair value less costs of disposal and its value in use, used to test for impairment.
- Goodwill under IFRS 3
- Consideration transferred plus non-controlling interest plus previously held interest, minus the net identifiable assets acquired, measured at acquisition date.
- Inventory measurement IAS 2
- Inventory is measured at the lower of cost and net realizable value; cost includes purchase costs, conversion costs, and other costs to bring inventory to saleable condition.
- Kazakhstan VAT rate
- The standard value added tax rate in the Republic of Kazakhstan is 12 percent; exports are generally zero-rated with documentary confirmation.
- Kazakhstan CIT rate
- Corporate income tax in Kazakhstan is generally levied at 20 percent on taxable income, computed as gross annual income less allowable deductions.
- MCI purpose
- The monthly calculation index is set annually by the budget law and serves as the base for many tax thresholds, deductions, and administrative fines.
- VAT registration threshold
- A taxpayer must generally register for VAT once taxable turnover exceeds the threshold set in the Tax Code, currently 20,000 MCI.
- Withholding tax scope
- Withholding tax applies to income of non-residents from Kazakh sources; applicable rates depend on income type and relevant double-tax treaties.
- Civil limitation period
- Under the Civil Code of Kazakhstan, the general limitation period is three years from when the person learned or should have learned of the violated right.
- LLP participant liability
- Participants of a limited liability partnership bear the risk of losses only up to their contributions, unlike general partners with unlimited liability.
- Probationary period limit
- Under the Labor Code, a probationary period generally may not exceed three months, with longer limits for certain categories such as senior managers.
- Offer and acceptance
- Contract formation requires a definite offer and an unconditional acceptance; written form is generally required for transactions between legal entities above statutory thresholds.
- Current ratio
- Current assets divided by current liabilities; it measures short-term liquidity and the ability to cover obligations due within one year.
- Quick ratio
- Current assets minus inventories, divided by current liabilities; a stricter liquidity measure excluding less-liquid inventory balances.
- Cash conversion cycle
- Days inventory outstanding plus days sales outstanding minus days payables outstanding; it measures how long cash is tied up in operations.
- Return on equity
- Net income divided by average shareholders' equity; it measures the return generated on owners' invested capital during the period.
- Accounting equation
- Assets equal liabilities plus equity; every transaction preserves this balance through double-entry bookkeeping with equal debits and credits.
- Five ethical principles
- Integrity, objectivity, professional competence and due care, confidentiality, and professional behavior, as set out in the IESBA Code.
- Self-interest threat
- A threat arising from financial or other interests of the auditor, such as contingent fees or overdue fees, that may improperly influence judgment.
- ISQM 1 scope
- The standard requiring firms to design, implement, and operate a system of quality management covering governance, resources, engagement performance, and monitoring.
- Engagement quality review
- An objective evaluation of significant judgments and conclusions by an eligible reviewer before the report is issued, required by ISQM 2 for specified engagements.
- CAATs
- Computer-assisted audit techniques use software to extract, analyze, and test client data, enabling full-population testing and anomaly detection.
- IT general controls
- Controls over access management, program changes, IT operations, and backup/recovery that underpin reliance on automated application controls.
- Benford's law analysis
- A data analytic technique examining the expected distribution of leading digits in large numeric data sets to identify anomalies and potential irregularities.
- Kazakhstan audit law
- The Law 'On Auditing Activity' governs audit activity, certification of auditors, licensing, and oversight by the authorized state body.
- Mandatory audit
- A statutory audit required for entities specified by Kazakh law, such as certain financial organizations and entities exceeding statutory thresholds.