A4 - Audit Evidence 1. Audit documentation 3 2. Audit...

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7. Financial ratios 75 8. Task-based simulations 87 9. Class questions 91 Audit procedures by transaction cycle 21 Audit Evidence The effect of information technology on the audit 65 Audit documentation 3 Audit evidence , 8 6. Evaluating audit findings 71 2. 4. Other audit procedures 58 3. 5. 1.
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Auditing 4 M-2 NOTES Becker Professional Education I CPA Exam Review (92010 DeVrv/Becker Educational Development Corp. All right5 re~erved
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Becker Professional Education I CPA Exam Review Auditing 4 AUDIT DOCUMENTATION I. GENERAL Audit documentation (also referred to as "working papers" or the "audit file") is the principal record of audit procedures performed, evidence obtained, and conclusions reached. A. Purpose The purpose of audit documentation is to provide: 1. Support for the auditor's report, including evidence that the audit was conducted in accordance with generally accepted auditing standards. 2. Assistance in planning, conducting, and supervising the audit. 3. Accountability, emphasizing that the audit team is responsible for its work. 4. Information that may be useful for future audits, quality control reviews, or peer reviews. B. Requirements Audit documentation should: Provide a record of accumuiated evidence and the results of audit tests and procedures; Be prepared in enough detail so that an experienced auditor who has no previous connection with the audit can understand the audit procedures performed, the evidence obtained, the conclusions reached, and how the accounting records reconcile with the financial statements; Demonstrate compliance with the standards of fieldwork by showing that the work performed was adequately planned and supervised, that a sufficient understanding of the entity and its environment was obtained, and that sufficient appropriate audit evidence was obtained to provide a reasonable basis for the opinion; Include identifying characteristics of the specific items tested: 5. Enable reviewers to understand the work performed and the evidence obtained; 6. Include documentation of departures from mandatory GAAS requirements, including justification for the departure and how appropriate alternative procedures were used to achieve audit objectives; 7. Identify both the staff who performed the work and the staff who reviewed the work, as well as the dates associated with each; 8. Contain proper indexing and cross-referencing; and 9. Indicate proper identification of client, purpose, and period covered. © 2010 DeVrv/Becker Educational Development Corp. All righis reserved A4-3
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Auditing 4 Becker Professional Education I CPA Exam Review C. Retention and Completion 1. Report Release Date The "report release date" is defined as the date on which the auditor grants the client permission to use the report. Often, this is the date on which the report is delivered to the client.
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This note was uploaded on 09/27/2011 for the course ACCT 540 taught by Professor Haight during the Spring '11 term at NMSU.

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A4 - Audit Evidence 1. Audit documentation 3 2. Audit...

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