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Definitions M

Management to Multiple types of financial information

Term

Definition

Management the person(s) with executive responsibility for the conduct of the entity’s operations.  For some entities in some jurisdictions, management includes some or all of those charged with governance, for example, executive members of a governance board, or an owner-manager.
Management (in the context of ASA 580)  should be read as “management and, where appropriate, those charged with governance.” Furthermore, in the case of a fair presentation framework, management is responsible for the preparation and fair presentation of the financial report in accordance with the applicable financial reporting framework; or the preparation of a financial report that gives a true and fair view in accordance with the applicable financial reporting framework.
Management (in the context of ASAE 3450)  the person(s) with executive responsibility for the conduct of the operations or individual business units of the entity. For some entities, in some circumstances, management includes some or all of those charged with governance, for example, executive members of a governance board, or an owner manager.
Management (in the context of ASAE 3610)  for the purposes of this Standard, means those with executive responsibility for the preparation and presentation of the general purpose water accounting report, including water accounting and reporting, unless otherwise specified. In some instances, management includes some or all of those charged with governance, for example, executive members of a governance board, or an owner manager.
Management bias a lack of neutrality by management in the preparation of information.
Management’s expert  an individual or organisation possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist the entity in preparing the financial report.
Management’s expert (in the context of ASAE 3610)  an individual or organisation possessing expertise in a field other than water accounting or assurance, whose work in that field is used by management or those charged with governance to assist them in preparing the general purpose water accounting report.
Management’s point estimate  the amount selected by management for recognition or disclosure in the financial report as an accounting estimate.
Material (in the context of a compliance engagement) 

(i) in relation to potential (for risk assessment purposes) or detected (for evaluation purposes) matter(s) of non compliance – instance(s) of non compliance that are significant, individually or collectively, in the context of the entity’s compliance with compliance requirements, and that might influence relevant decisions of intended users or affect the assurance practitioner’s conclusion; and/or 

(ii) in relation to the compliance framework and controls – instance(s) of deficiency that are significant in the context of the entity’s control environment and that may raise the compliance engagement risk sufficiently to affect the assurance practitioner’s conclusion. 

Material control  a control which is necessary to mitigate the risk of a control objective not being achieved and for which there are no or insufficient compensating controls. The relevant control objectives are those at the level to be concluded on in the assurance report, whether overall or specific control objectives. 
Material inconsistency  information within the document that materially contradicts the financial information that is the subject of the assurance report.
Materiality  variations in performance of an activity evaluated against the identified criteria which, have the potential to affect the economy, efficiency and/or effectiveness of the activity and be reasonably expected to influence relevant decisions of the intended users or the discharge of accountability by the responsible party or governing body of the entity. 
Materiality (in the context of ASAE 3450)  in relation to information, that if certain information is omitted, misstated, or not disclosed, that information has the potential to affect the economic decisions of users of the document, or the discharge of accountability by management or those charged with governance of the entity (the responsible party).
Materiality (in the context of ASAE 3610) information is material if its omission from, or misstatement in, a general purpose water accounting report has the potential to influence decisions of users of that report, or the discharge of accountability by management or those charged with governance. 
Measurer or evaluator  the party(ies) who measures or evaluates the underlying subject matter against the criteria. The measurer or evaluator possesses expertise in the underlying subject matter. 
Misappropriation of assets  the theft of an entity’s assets and is often perpetrated by employees in relatively small and immaterial amounts. However, it can also involve management who are usually more capable of disguising or concealing misappropriations in ways that are difficult to detect.
Misstatement 

a difference between the amount, classification, presentation, or disclosure of a reported financial report item and the amount, classification, presentation, or disclosure that is required for the item to be in accordance with the applicable financial reporting framework. Misstatements can arise from error or fraud.

When the auditor expresses an opinion on whether the financial report is presented fairly, in all material respects, or gives a true and fair view, misstatements also include those adjustments of amounts, classifications, presentation, or disclosures that, in the auditor’s judgement, are necessary for the financial report to be presented fairly, in all material respects, or to give a true and fair view.

Misstatement (in the context of ASAE 3000)  a difference between the subject matter information and the appropriate measurement or evaluation of the underlying subject matter in accordance with the criteria. Misstatements can be intentional or unintentional, qualitative or quantitative, and include omissions. 
Misstatement (in the context of ASAE 3100)  for attestation engagements on compliance, a difference between the Statement and the assurance practitioner’s evaluation of compliance with the compliance requirements. Misstatements can be intentional or unintentional, qualitative or quantitative, and include omissions.
Misstatement (in the context of ASAE 3150) 

(i) In an attestation engagement, a difference between the responsible party or evaluator’s Statement and the appropriate evaluation of the design of controls against the control objectives, and/or the description, implementation or operating effectiveness of controls against the design, which is expressed either as a misstatement in the responsible party or evaluator’s Statement, or as a deficiency in the suitability of the design, misstatement in the description, deficiency in implementation or deviation in operating effectiveness of controls.

(ii) In a direct engagement, a difference between the design and a design suitable to achieve the control objectives and/or a difference between the description, implementation or operating effectiveness of controls and the design, in so far as it is suitable, which is expressed as a deficiency in the suitability of the design of controls to achieve the control objectives, misstatement in the description, deficiency in the implementation or deviation in the operating effectiveness of controls as designed.

Misstatements can be intentional or unintentional, qualitative or quantitative, and include omissions.

Misstatement (in the context of ASAE 3610)  a difference between the general purpose water accounting report and the appropriate measurement or evaluation of the underlying subject matter against the criteria. Misstatements can be intentional or unintentional, qualitative or quantitative, and include omissions.
Misstatement in the description of the system  an inaccuracy, inadequacy or omission in the description, including in the identification of the boundaries and other identifying characteristics of the system, the control components described, the areas of activity encompassed and the controls as designed and/or implemented.
Misstatement of fact (with respect to other information)  other information that is unrelated to matters appearing in the subject matter information or the assurance report that is incorrectly stated or presented. A material misstatement of fact may undermine the credibility of the document containing the subject matter information. 
Misstatement of fact (in the context of ASAE 3450)  information that is incorrectly stated or presented in the document. A material misstatement of fact may undermine the credibility of financial information that is the subject of the assurance report.
Misstatement of the other information  exists when the other information is incorrectly stated or otherwise misleading (including because it omits or obscures information necessary for a proper understanding of a matter disclosed in the other information).
Modified opinion  a qualified opinion, an adverse opinion or a disclaimer of opinion on the financial report.
Monitoring  a process comprising an ongoing consideration and evaluation of the firm’s system of quality control, including a periodic inspection of a selection of completed engagements, designed to provide the firm with reasonable assurance that its system of quality control is operating effectively.
Monitoring of controls  a process to assess the effectiveness of internal control performance over time. It includes assessing the design and operation of controls on a timely basis and taking necessary corrective actions modified for changes in conditions. Monitoring of controls is a component of internal control.
Multiple types of financial information  financial information that involves more than one type.