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

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Walking the Audit Trail Sales Order Sales Invoice Shipping Document Sales Journal Vouching Tracing Validity Overstatement Understatement Completeness
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Sufficiency = f(Materiality, Risk, Expectation) Materiality Evidence Risk
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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.
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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...
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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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L4 Notes_Part_3 - a The auditor uses a sophisticated...

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