CACC521-Week08-Ch09

CACC521-Week08-Ch09 - Ch 9 MC 1a 2b 3d 4b 5c 6a 7b 8d 9b...

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Ch 9 MC 1a 2b 3d 4b 5c 6a 7b 8d 9b 10b 11a 12d 13d 14a 15b 16d 17d 18b 19b 20c 21a ch10 MC 1b 2c 3d 4b 5a 6b 7c 8a 9c or d 480/48000 x 49000 = 4900 480/120 x 1200 =4800 11a 12c 13a Next week - Sampling print off sampling question Chapter 9 - Control Assessment and Testing Learning Objectives 1. Distinguish between management and the auditor’s responsibility regarding an auditee organization’s internal controls. know what they are 2. Explain why the auditor evaluates and auditee’s internal controls.
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3. Define seven internal control objectives, relating them to the assertions in management’s financial statements. Learning Objectives 4. Describe general and application control activities, document accounting systems, identify key controls and weaknesses, and write key control tests for an audit program. (3 phases) highlight a few points but not indepth 5. Outline the auditor’s responsibility when internal control evaluation work detects or indicates a high risk of fraudulent misstatement. 6. Explain reasonable assurance and cost-benefit in the context of control risk assessment and development of the audit approach. 7. Apply and integrate the chapter topics to analyze a practical auditing situation case scenario. Chapter Overview Management Versus Auditor Responsibility for Control Reasons for Control Evaluation Control Objectives and Procedures Phases of a Control Evaluation Auditor’s Responsibility to Report Internal Control Deficiencies and Fraud Risks Control Evaluation, Further Audit Procedures and Reasonable Assurance Page 315 effectiveness of operations reliability of financial reporting compliance with laws and regs - only with respect to FS Management Versus Auditor Responsibility for Control Management responsibility: Management is responsible for its control environment, accounting system, and for establishing and maintaining a system of internal control procedures. Cost of controls is balanced with the benefit of risk reduction. Internal Control Internal control is defined as: the process designed and effected by those charged with governance, management, and other personnel to provide reasonable assurance about the achievement of the entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations and compliance with applicable laws and regulations. COSO definition Governance - BOD management - how they manage the 3 definitions know 3 definitions of page 315 Management Versus Auditor Responsibility for Control External auditor’s responsibility: Evaluating existing internal controls and assessing the risk of material misstatement related to them. Find out what an organization does to avoid potential errors and irregularities in
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seven categories. finding where error points are
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CACC521-Week08-Ch09 - Ch 9 MC 1a 2b 3d 4b 5c 6a 7b 8d 9b...

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