Auditing_Standard_5

Auditing_Standard_5 - Public Company Accounting Oversight...

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Unformatted text preview: Public Company Accounting Oversight Board Bylaws and Rules Standards AS5 As of November 9, 2007 393 Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements June 12, 2007 AUDITING AND RELATED PROFESSIONAL PRACTICE STANDARDS Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements [Effective pursuant to SEC Release No. 34-56152; File No. PCAOB-2007-02; July 27, 2007] Public Company Accounting Oversight Board Bylaws and Rules Standards AS5 As of November 9, 2007 394 Table of Contents Paragraph Introduction ........................................................................................................1-8 Integrating the Audits.................................................................................6-8 Planning the Audit ................................................................................................9-20 Role of Risk Assessment...........................................................................10-12 Scaling the Audit........................................................................................13 Addressing the Risk of Fraud ....................................................................14-15 Using the Work of Others ..........................................................................16-19 Materiality ..................................................................................................20 Using a Top-Down Approach ...............................................................................21-41 Identifying Entity-Level Controls ................................................................22-27 Control Environment .......................................................................25 Period-end Financial Reporting Process.........................................26-27 Identifying Significant Accounts and Disclosures and Their Relevant Assertions .............................................28-33 Understanding Likely Sources of Misstatement ........................................34-38 Performing Walkthroughs ...............................................................37-38 Selecting Controls to Test .........................................................................39-41 Testing Controls...................................................................................................42-61 Testing Design Effectiveness ....................................................................42-43 Testing Operating Effectiveness................................................................44-45 Relationship of Risk to the Evidence to be Obtained.................................46-56 Nature of Tests of Controls.............................................................50-51 Timing of Tests of Controls.............................................................52-53 Extent of Tests of Controls..............................................................54 Extent of Tests of Controls....
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Auditing_Standard_5 - Public Company Accounting Oversight...

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