A range of consulting services provided by Certified Public Accountants (CPA) and other financial

advisors to businesses and high net worth individuals who require specialized advice on capital
formation, cash flow and wealth management. Advisory clients pay fees based on services provided
or as a percent of assets under management.

A fraud audit is a meticulous review of financial documents, while one searches for the point
where the numbers and/or financial statements do not mesh. Fraud audits are done when fraud
is suspected. Some companies do them as a precaution---to prevent fraud from happening and
to catch it before the offender takes too much money. There is more to a fraud audit, however.

Audit Risk is the risk that an auditor expresses an inappropriate opinion on the financial statements.

Inherent Risk is the risk of a material misstatement in the financial statements arising due to error or
omission as a result of factors other than the failure of controls (factors that may cause a misstatement
due to absence or lapse of controls are considered separately in the assessment of control risk).

Detection Risk is the risk that the auditors fail to detect a material misstatement in the financial
statements.

Substantive testing is an audit procedure that examines the financial statements and supporting
documentation to see if they contain errors. These tests are needed as evidence to support the
assertion that the financial records of an entity are complete, valid, and accurate.

Control Environment is the set of standards, processes, and

structures that provide the basis for carrying out internal control
across the organization. The board of directors and senior
management establish the tone at the top regarding the importance
of internal control including expected standards of conduct.
Audit is a systematic, independent and documented process for obtaining audit evidence [records,
statements of fact or other information which are relevant and verifiable] and evaluating it objectively
to determine the extent to which the audit criteria [set of policies, procedures or requirements] are
fulfilled. Several audit methods may be employed to achieve the audit purpose.