Ebook Auditing and assurance services - an integrated approach (16/E): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Auditing and assurance services - an integrated approach (16/E): Part 2
Ebook Auditing and assurance services - an integrated approach (16/E): Part 2
www.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2her financial statements are fairly stated.13-2 Select the appropriate types of audit tests13-3 Understand the concept of evidence mix and how It should be varied in different circumstances.13-4 Design an audit program.13-5 Compare and contrast transaction-reJated audit objectives with balance-relat Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ed and presentation and disclosure-related audit objectives.13-6 Understand key evidence-related terms13-7 Integrate the four phases of the audit procEbook Auditing and assurance services - an integrated approach (16/E): Part 2
essOVERALL AUDITSTRATEGY AND AUDIT PROGRAMChange in Audit Strategy Pays DividendsLakeisha Jackson was the in-charge auditor at Probert and Reed, a larwww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2, the manager on the engagement, announced that he was leaving the firm Susan Reed, the partner on the engagement, told Jackson that she would be the manager on the following year's engagement Reed further told her, "I'd like you to do some early planning for next year's audit. The client would like Ebook Auditing and assurance services - an integrated approach (16/E): Part 2 us to keep any fee increase minimal. I'd like to see how we can adjust our audit approach to reduce audit hours, but maintain or even increase auditEbook Auditing and assurance services - an integrated approach (16/E): Part 2
quality."Jackson spent several hours reviewing the audit files and time budget. “I wonder how Susan is going to feel about changing our audit approachwww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2nd accounts receivable. In addition, because Simpson had extensive fixed assets, considerable hours were also spent testing fixed assets. Simpson had excellent controls, and had recently invested in their inventory accounting system, including new hand-held scanners that made it easy to track invent Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ory. They had begun using cycle counts of inventory, but still took complete year-end physical counts of Inventory at several locations. Although ProbEbook Auditing and assurance services - an integrated approach (16/E): Part 2
ert and Reed had gained an understanding of internal control at Simpson, as required by auditing standards, they had done minimal testing of controls www.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2fore sending them to Reed.When Reed received the memo. she was initially taken aback. Jacksons ideas did not involve tinkering at the edges and adjusting a few samples sizes But the more Reed thought about It, the more the changes made sense. First. Jackson recommended greater reliance on controls o Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ver inventory and sales. Most of the controls were automated, and the firm's information risk specialists could assist with the testing Jackson also rEbook Auditing and assurance services - an integrated approach (16/E): Part 2
ecommended elimination of year-end physical counts of Inventory, and reliance on cycle counts Additionally, she recommended that Simpson rely solely owww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2g substantive analytical procedures As a result, the sample size for accounts less than performance materiality could be dramatically reduced. Finally, Jackson recommended that detail tests of depreciation be replaced by substantive analytical procedures.As Reed reviewed the files at the completion Ebook Auditing and assurance services - an integrated approach (16/E): Part 2of the following year's engagement, a smile crossed her face. Simpson had always been a good audit client, but the change in auditingwww.downloadslideEbook Auditing and assurance services - an integrated approach (16/E): Part 2
.netstrategy made her even more confident that the financial statements were fairly stated, and even with additional planning hours, total time on thewww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ancial Officer, toward the end of the engagement. "We did not think we were ready to use only cycle counts," said Palmer, "but your suggestion encouraged US that we were ready." He further noted, "This was the smoothest year-end close and audit we've had"Reed met with Jackson at the conclusion of th Ebook Auditing and assurance services - an integrated approach (16/E): Part 2e engagement. "You know, I was a little nervous adopting all the recommendations you made last year, but they all worked out great." Jackson smiled, tEbook Auditing and assurance services - an integrated approach (16/E): Part 2
hinking she had been a little nervous herself. "Oh, I almost forgot to tell you." Reed added. "The partners just voted to promote you. effective July www.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2 chapter deals with the eighth and last step in the planning phase of an audit. This critical step finalizes the audit strategy and entire audit program the auditor plans to follow, including all audit procedures, sample sizes, items to select, and timing. The chapter-opening vignette deals with the Ebook Auditing and assurance services - an integrated approach (16/E): Part 2 importance of the decisions involving the overall audit strategy and audit plan and program, considering both audit effectiveness and efficiency.FirsEbook Auditing and assurance services - an integrated approach (16/E): Part 2
t, the overall audit strategy is discussed, which means selecting a mix of five types of tests that will result in an effective and efficient audit. Twww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2 cost-effective mix of the types of tests, the auditor designs a detailed audit program. Later in the chapter, we’ll address how phase I, which includes all of the audit planning steps, relates to the other three phases of the audit.TYPES OF TESTSIn developing an overall audit strategy, auditors use Ebook Auditing and assurance services - an integrated approach (16/E): Part 2 five types of tests to determine whether financial statements are fairly stated. Auditors use risk assessment procedures to identify significant riskEbook Auditing and assurance services - an integrated approach (16/E): Part 2
s due to fraud or error, and design tests that address those risks. Auditors also assess the risk of material misstatement, represented by the combinawww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2se to the risks identified. Each audit procedure falls into one. and sometimes more than one. of these five categories.Figure 13-1 (p. 410) shows the relationship of the four types of further audit procedures to the audit risk model. As Figure 13-1 illustrates, tests of controls are performed to sup Ebook Auditing and assurance services - an integrated approach (16/E): Part 2port a reduced assessment of control risk, while auditors use substantive analytical procedures and tests of details of balances to satisfy planned deEbook Auditing and assurance services - an integrated approach (16/E): Part 2
tection risk. Substantive tests of transactions affect both control risk and planned detection risk, because they test the ef fectiveness of internal www.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ncluding its internal control, to assess the risk of material misstatement in the client’s financial statements. Chapter 8 described how the auditor performs procedures to understand the client's business and industry to assess the risk of material misstatement, chapters 9 and 10 further described h Ebook Auditing and assurance services - an integrated approach (16/E): Part 2ow auditors perform procedures to identify significant risks and assess inherent risk and control risk, while Chapter 12 illustrated how auditors perfEbook Auditing and assurance services - an integrated approach (16/E): Part 2
orm procedures to obtain an understanding of internal control to assess control risk. Collectively, procedures performed to obtain an understanding ofwww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine wheth Ebook Auditing and assurance services - an integrated approach (16/E): Part 2med to assess the risk of material misstatement in the financial statements. The auditor performs tests of controls, substantive tests of transactions, substantive analytical procedures, and tests of details of balances in response to the auditor’s assessment of the risk of material misstatements. T Ebook Auditing and assurance services - an integrated approach (16/E): Part 2he combination of these four types of further audit procedures provides the basis for the auditor's opinion, as illustrated by Figure 13-1.OBJECTIVE 1Ebook Auditing and assurance services - an integrated approach (16/E): Part 2
3-1Use the five types of audit tests to determine whether financial statements are tarty statedRisk AssessmentProceduresChapter 13 / OVERALL AUDIT STRwww.downloadslide.net13LEARNING OBJECTIVESAfter studying t/its chapter. you should be able to13-1 Use the five types of audit tests to determine whethGọi ngay
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