Audit ch09 part 1 slides

Audit ch09 part 1 slides - Chapter 9 Control Assessment and...

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Chapter 9 Control Assessment and Testing
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Slide 2 Management Versus Auditor Responsibility for Control Management responsibility: – Management is responsible for its control environment, accounting system, and for establishing and maintaining a system of internal control procedures. • Cost of controls is balanced with the benefit of risk reduction.
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Slide 3 Cost vs Benefit Why does management have to trade off between costs and benefits of internal controls? How does managements' cost-benefit trade-off decision affect control risk?
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Slide 4 Management Versus Auditor Responsibility for Control External auditor’s responsibility: – Evaluating existing internal controls and assessing the risk of material misstatement related to them. • Find out what an organization does to avoid potential errors and irregularities
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Slide 5 General Categories of Misstatements 1. Invalid transactions are recorded.
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Audit ch09 part 1 slides - Chapter 9 Control Assessment and...

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