132CHAPTER 16_17

132CHAPTER 16_17 - Auditing Operations Completing the Audit...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Bob Anderson, UCSB CHAPTERS 16&17-1 Auditing Operations & Completing the Audit CHAPTER 16 Auditor’s Reports CHAPTER 17 Auditing Operations and Completing the Audit Chapter 16 Bob Anderson, UCSB ChapterS 16&17-3 Relationships Between Balance Sheet and Income Statement Accounts Balance Sheet Item Revenue Expenses Accounts receivable Notes receivable Securities and investments Sales Interest, Interest, dividends, gains, investee’s income Uncollectible accounts Uncollectible notes Losses Inventories Purchases, cost of goods sold, payroll Property, plant and equip. Intangible assets Prepaid expenses Accrued liabilities Rent, gains Royalties Depreciation; repairs Amortization Various expenses Various expenses Interest-bearing debt Interest Bob Anderson, UCSB ChapterS 16&17-4 Substantive Tests for Selling, General and Administrative Expenses Perform analytical procedures Develop an expectation of the account balance Determine the amount of difference from the expectation that can be accepted without investigation Compare the company’s account balance with the expected account balance Investigate significant deviations from the expected account balance Obtain or prepare analyses of selected expense accounts Obtain or prepare analyses of critical expenses in the income tax return
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon