ACCT_3444_Chapter_12 - ACCT 3444 Week 6 Chapters 9 and 10...

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

View Full Document Right Arrow Icon
ACCT 3444 Week 6 Chapters 9 and 10 Recap: Control Systems: Control Objectives: Validity – recorded transactions are valid and documented Completeness – all valid transactions are recorded and none are omitted Authorization – transactions are authorized according to company policy Accuracy – transaction dollar amounts are properly calculated Classification – transactions are properly classified in accounts Accounting – transaction accounting is complete Proper period – transactions are recorded in the proper period Control Procedures Authorization of transactions/activities General authorization – management establishes criteria for acceptance of specific types of transactions (e.g. criteria for extending credit to customers) Specific authorization – transactions are authorized on an individual basis – (top management must authorize all expenditures over a specific dollar amount) Segregation of duties No one individual or department should handle all aspects of a transaction from beginning to end Separate individuals should handle each of the following parts of a transaction: C – Custody of the asset A – Authorization of a transaction R – Recording the transaction Safeguards over access to and use of assets and records Chapter 9 and 10 Wrap Up In Class Exercises: Chapter 9: 9-29 Case – provide guidance on which controls to audit Chapter 10:10-21 Assess IT governance and provide recommendations for improvement 1
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
Chapter 12: Overall Audit Plan and Audit Program Audit Strategy – the planned approach to conduct the audit, based on the audit risk assessment. The audit strategy is the last task of PHASE 3 – Plan the Audit. Auditor uses the audit risk model (AR=IR*CR*DR) to assist with planning Phase 3 Tasks to be completed: Determine audit risk (chapter 7) Determine inherent risk (chapter 7) Set preliminary materiality levels (chapter 7) Document internal controls, including entity-level controls
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

ACCT_3444_Chapter_12 - ACCT 3444 Week 6 Chapters 9 and 10...

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