Those Charged With Governance (TCWG)

“The person or organization with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes overseeing the financial reporting process. For some entities in some jurisdictions, those charged with governance may include management personnel, for example, executive members of a governance board of a private or public sector entity, or an owner-manager.”

 (For details check Glossary of Terms – IAASB Handbook)

Audit Risk (AR)

 “Audit risk is the risk that auditor expresses an inappropriate audit opinion when the financial statements are materially misstated.”

(For details check Glossary of Terms – IAASB Handbook)

Assurance Engagement (AE) 

 “An engagement in which a practitioner expresses a conclusion designed to enhance the degree of confidence of the intended users other than the responsible party about the outcome of the evaluation or measurement of a subject matter against criteria. The outcome of the evaluation or measurement of a subject matter is the information that results from applying the criteria.”

(For details check Glossary of Terms – IAASB Handbook) 

Material

“Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or a combination of both, could be the determining factor.”

(For details check Para 7 of IAS 1)