Class_16_substantive_web

Class_16_substantive_web - Revenues, Receivables, and...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
AFM 451 1 Revenues, Receivables, and Revenues, Receivables, and Receipts Process Receipts Process Substantive Procedures Substantive Procedures
Background image of page 1

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

View Full DocumentRight Arrow Icon
AFM 451 2 1. Design audit and investigative procedures for detecting common errors, irregularities, and frauds in the revenues, receivables and receipts process. 2. Explain the importance of the existence assertion for the audit of cash and A/R. Learning Objectives Learning Objectives 1. Identify considerations for using confirmations when auditing cash and accounts receivable. 2. Perform substantive audit procedures for the audit of bank statement reconciliations, explaining how auditors can search for lapping and kiting .
Background image of page 2
AFM 451 3 Methodology for designing tests of Methodology for designing tests of details of balances for A/R details of balances for A/R
Background image of page 3

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

View Full DocumentRight Arrow Icon
AFM 451 4 Effects of inherent & control risks
Background image of page 4
AFM 451 5 Substantive Procedures Substantive Procedures Audit procedures to gather direct evidence on account balances are called substantive procedures . recalculation , observation , confirmation , enquiry , vouching , tracing , scanning , analytical review Dual purpose procedures – gain substantive purpose evidence and control purpose evidence with the same test. See Appendix 11B for audit program
Background image of page 5

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

View Full DocumentRight Arrow Icon
AFM 451 6 Substantive vs. Control testing Substantive vs. Control testing Substantive procedures are designed to obtain direct evidence about the dollar amount in account balances, while test of controls procedures are designed to obtain evidence about company’s of its own control procedures. Goal of SP is to detect evidence of errors, irregularities and fraud
Background image of page 6
AFM 451 7 The The Existence Existence Assertion Assertion For A/R and other assets, auditors place emphasis on existence and rights assertions. Recalculation (computation) Focus on assets that depend largely on calculations. Physical observation (inspection) Inventories and assets can be examined, title documents can be vouched, security documents can be inspected.
Background image of page 7

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

View Full DocumentRight Arrow Icon
AFM 451 8 The The Existence Existence Assertion Assertion Confirmation
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/23/2009 for the course AFM 480 taught by Professor Gb during the Spring '09 term at Waterloo.

Page1 / 25

Class_16_substantive_web - Revenues, Receivables, and...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online