L4 Notes_Part_3 - a. The auditor uses a sophisticated...

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

View Full Document Right Arrow Icon
Walking the Audit Trail Sales Order Sales Invoice Shipping Document Sales Journal Vouching Tracing Validity Overstatement Understatement Completeness
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Sufficiency = f(Materiality, Risk, Expectation) Materiality Evidence Risk
Background image of page 2
P3: Audit Procedures, Types of Evidence and Management Assertions Identify the type of audit procedure employed (test of control, analytical procedure, or substantive test of accounts, transactions, or disclosure), the type of evidence obtained, and management assertion addressed in each of the following situations.
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a. The auditor uses a sophisticated regression analysis package to determine whether the decrease in accounts payable is out of line with the activity in the cash and inventory account in order to know where to look for potential misstatements. ARP/analysis/completeness of A/P and/or valuation of cash and inventory b. The auditor sends a questionnaire on the order entry process via email to all the members of the sales business process. UIC/Inquiry/all assertions for Sales and A/R...
View Full Document

Page1 / 3

L4 Notes_Part_3 - a. The auditor uses a sophisticated...

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