Chapter 13 Slides

Chapter 13 Slides - 13 - 1 Click to edit Master subtitle...

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Unformatted text preview: 13 - 1 Click to edit Master subtitle style Acct 4510/5510 13 - 1 Overall Audit Plan and Audit Program Chapter 13 11 Acct 4510/5510 13 - 2 Acct 4510/5510 Opening Vignette How Much and What Kind of Testing Will Get the Job Done? Acct 4510/5510 22 The vignette presents a discussion over the conflict between efficiency and effectiveness in doing audits. Find Material Misstatements vs. Conduct the Audit at the lowest possible cost. How does an auditor accomplish both goals? 13 - 3 Acct 4510/5510 Five Types of Audit Tests Tests Acct 4510/5510 33 Risk Assessment Procedures Represented by the procedures auditors perform to assess inherent risk and control risk as described in Chapters 8 and 9. Primarily procedures performed to obtain an understanding of the entity and its environment, including internal controls. Further Audit Procedures (4 Types of Audit Tests) Done in response to results of risk assessment procedures. Tests of Controls Substantive Tests of Transactions Analytical Procedures Tests of Details of Balances 13 - 4 Acct 4510/5510 Further Audit Procedures and the Audit Risk Model Audit risk model Further audit procedures Tests of controls Substantive tests of transaction s + AAR IR CR = PDR Analytical procedures Tests of details of balances Sufficient competent evidence per GASS 44 Acct 4510/5510 Often done at the same time 13 - 5 Acct 4510/5510 Problem 13-24 Page 430 Acct 4510/5510 55 1. Tests of Details of Balances Recalculation 2. Tests of Details of Balances Documentation 3. Analytical Procedures Analytical Procedures 4. Tests of Controls Documentation 5. Substantive T of Transactions Documentation 6. Analytical Procedures Recalculation 7. Tests of Details of Balances Documentation 8. Tests of Controls Inquiry and Observation 9. Tests of Details of Balances Confirmation 10. Tests of Controls Documentation 11. Tests of Controls Inquiry 13 - 6 Acct 4510/5510 Role of All Audit Tests in the Sales and Collection Cycle Sales Accounts Receivable Cash in Bank Sales transactions Cash receipts transactions Ending balanc e Ending balanc e TOC + STOT + AP + TDB = Sufficient appropriate evidence per GAAS Audited by TOC, STOT, and AP Audited by AP and TDB Audited by TOC, STOT, and AP 66 Acct 4510/5510 13 - 7 Acct 4510/5510 Relationship Between Further Audit...
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Chapter 13 Slides - 13 - 1 Click to edit Master subtitle...

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