Chapter_Nine - Upcoming Quiz covers chapter 8 9 Bring in a...

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

View Full Document Right Arrow Icon
Upcoming Quiz: covers chapter 8, 9. Bring in a fraud story for the quiz. We are not going to finish chapter nine today. Chapter 9 material that we don’t get to today, will be slightly covered. Chapter 8+ 9, fraud component. H.W: 9-22: A.4 B.4 C.1 9-23: A.1 B.1 C.1 9-24: A.2 B.3 C.1 9-34 GOOD Practice Problem Control Risk Inherent Risk Acceptable Audit Risk Planed Evidence A N N or I D I B N N D I C D N N D D N I N I E N N I D F D D N D G I I N I H I I D I I I I N I J D I N C Auditing Lecture Notes- Chapter Nine Opening Vignette Discussion- No sympathy from the public for the auditors when the public loses $/investments The public is desperate for auditors to be guarantors – but this is not possible Auditors must seriously consider the risk individual clients pose and act accordingly Because right now the economic situation The couple is going to be mad at the CPA firm. They were responsible for the audit. Audit planning- we need to think about whether to accept a client or not and for that we need to look at risk. If high risk, high price of audit. Someone will audit you for the right price. Setting Materiality and Risk – Part of audit planning…….remember from Chp. 8 This is step 5 that we summarized as planning the audit. Objective 1 and 2 -Understanding materiality is under 1 -Set preliminary judgment is under 2
Background image of page 1

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

View Full Document Right Arrow Icon
Steps in Applying Materiality – Figure 9-1………pg. 221 Must know/understand the definition of materiality……. .pg. Potential essay: FASB has formal definition of materiality. Look at the formal definition of materiality, and recognize it is good enough. You need to be able to remember key words of the formal definition. In the professio Step 1 – Set preliminary judgment about materiality- (PM) planning materiality or can also be TM PM- look at the overall client, and be able to think of what amount of error I will accept in order to be satisfied. What is the overall misstatement for these financial statements
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 5

Chapter_Nine - Upcoming Quiz covers chapter 8 9 Bring in a...

This preview shows document pages 1 - 3. Sign up to view the full document.

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