What does management override mean on the CPA exam?
Management override. Management using its authority to bypass controls that otherwise work. Presumed a risk on every audit, because no control can be designed to stop the people who design the controls.
Defined against AU-C 240.31.
Which CPA exam sections use management override?
Management override appears in the AUD section of the CPA exam.
Related terms
- management's specialist: An expert management uses to help prepare the financial statements, such as an actuary or an appraiser.
- analytical procedures: Evaluations of financial information by studying plausible relationships among financial and nonfinancial data.
- written assertion: Management's own signed statement that the description is fair and the controls are suitably designed.
- senior management: The people who direct and control the entity day to day, as distinct from those charged with governance, whose job is to oversee them.
- audit committee: A subcommittee of the board of directors that oversees financial reporting and the external audit.
- further audit procedures: The work done in response to assessed risk: tests of controls and substantive procedures.