L2 Notes_Part_3 - F/S free from material misstatement F/S...

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Audit Program Judgments Inform Cost of collecting evidence Client’s availability Fraud risk IC design analysis, tour the plant, Internal auditors, corp. governance Materiality, audit risk, expectation Size and complexity of client F/S are fairly presented in accordance with GAAP Audit program = f( 1. (Evidence: How much?, What kind? When?); 2. Types of tests; 3. Staff to perform work) How Many Planning Cues? How much evidence? = f(information search costs, availability, audit and engagement risk) What kind of evidence? When to collect? What weight to put on each cue? Auditor’s Judgment Reality
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Audit Opinion Judgment Inform W/P support audit requirements Audit firm is independent Client is a going concern Presentation and disclosures are adequate Other auditors involved, scope limitations, consistency in
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Unformatted text preview: F/S free from material misstatement F/S are fairly presented in accordance with GAAP Appropriate opinion to express How Many Cues? How much evidence? = f(information search costs, availability, audit and engagement risk) What kind of evidence? When to collect? What weight to put on each cue? Auditors Judgment Reality The Anatomy of a Judgment Factors Affecting Judgment Quality Person Task Environment Knowledge structure Knowledge content Personal involvement Cognitive Processes Abilities Intrinsic motivation Risk attitudes Affect Cognitive style Gender Cultural background Complexity Relevance of information Framing of task and info Order of info Presentation format Response mode Monetary incentives Accountability & justification Assigned goals Feedback Groups and teams Time pressure Standards & regulation...
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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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L2 Notes_Part_3 - F/S free from material misstatement F/S...

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