Copy of Performing Audit Procedures in Response to Assessed Risks

Copy of Performing Audit Procedures in Response to Assessed Risks

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Click to edit Master subtitle style Performing Audit Procedures in  Response to Assessed Risks and  Evaluating the Audit Evidence 
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Responses n May perform only substantive procedures. n Should design and perform substantive procedures for all relevant assertions for each material class of transactions. n If Auditor uses nonfinancial information or budget data—should obtain evidence about accuracy and completeness of such information.
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Tests of Controls n Obtain evidence that controls operate effectively n Relevant times during period n Consistency of application n By whom or what means n Different times—consider differently n Absence of misstatements in substantive tests does not provide evidence about controls. n Misstatements should be considered when evaluating controls.
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Evidence from prior periods n Obtain evidence about changes. n If changed—test effectiveness
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Unformatted text preview: n Test effectiveness at least every three years. n Should test effectiveness of some controls each audit n Consider environment, risks, ITGC n If significant RMM, and relying on controls must test. Substantive Procedures n All relevant assertions for each material class of transactions n Financial reporting system q Agree financial statements and notes to underlying accounting records. q Examine material journal entries and other adjustments n Perform substantive procedures specifically responsive to significant risks n Substantive procedures from prior period not sufficient. Evaluating Evidence n For deviations from TOCmake specific inquiries to understand potential consequences. n Dont assume instance of fraud is isolated n Document linkage of procedures with assessed risk at assertion level....
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Copy of Performing Audit Procedures in Response to Assessed Risks

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