L22 Notes_Part_18 - Evidence 1) What type (nature,...

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Planning Phase 1. Preplan 2. Understand the client’s business and industry 3. Assess client business risk 5. Set Materiality and Acceptable Audit Risk 4. Preliminary Analytical Procedures 7. Develop Overall Audit Plan and Audit Program Arens, Elder Beasley 6. Assess Fraud Risk
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Overall Objective State an independent, expert opinion on the fairness of the financial statements Management’s Assertions 1) Presentation and Disclosure 2) Existence and Occurrence 3) Rights and Obligations 4) Completeness 5) Valuation Auditor’s Objectives 1) Presentation and Disclosure a. Classification 2) Validity 3) Ownership 4) Completeness 5) Valuation a. Cutoff b. Accuracy c. Realizable Value
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Unformatted text preview: Evidence 1) What type (nature, competence) 2) When? (Timing) 3) How much? (extent, sufficiency) Types of Tests 1) Understanding IC 2) Tests of Control 3) Analytical Review Procedure 4) Substantive Test of Transactions 5) Detailed Tests of Balances Characteristics of Evidence Persuasiveness Of Evidence = f(competence, sufficiency, timeliness) Competence = f(relevance, independence of provider, IC, qualifications of provider, objectivity) Sufficiency = f(materiality, risk, expectation) Timeliness = f(planning, beginning of audit, coverage of entire year’s transaction processing, interim testing, closeness to B/S date, end of audit)...
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This note was uploaded on 10/05/2011 for the course ACG 5637 taught by Professor Monikacaushoulli during the Fall '08 term at University of Florida.

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L22 Notes_Part_18 - Evidence 1) What type (nature,...

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