Notes For Auditing Exam 2.docx

Notes For Auditing Exam 2.docx - Notes For Auditing Exam 2...

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Notes For Auditing Exam 2 Chp 4 AR= Ir*CR*DR Allowable detection risk = AR/IR*CR The necessary level of effectiveness of the auditor substantive testify for that out of assertion. Assume the auditor discovers fraud who should they report this too? Immaterial should be reported to the management one level up More consequential fraud should be reported to the board of directors What is information risk- the probability that the information distributed will be materially misleading Audit risk- Fraud- act of knowingly making material misrepresentation of facts Employee fraud- misappropriate funds or other property Embezzlement- Larceny- Defalcation- Be able to recognize fraud risk factors pg 125. Chp. 5 Material Weakness- in internal control is defined as a deficienct or combo of deficiencies Pg 200 be able
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  • Fall '09
  • Financial audit, fraud risk factors, fraud- misappropriate funds

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