Auditing Exericse-Substantive Analytical Procedures
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Surround Sound Inc.
Surround Sound Inc is a large manufacturing firm specializing in the production of home entertainment systems.
Assurance and Auditing
Chapter 16 talks about auditing Cash and Cash Transactions. Since almost all
accounting transactions pass through the cash account, cash is affected in one way or
another by all of a companys business processes. Al
Audit Homework #2
1. A computer operator picked up a data file of purchase orders from the prior
week and processed them through the system a second time.
a. The most relevant assertion would be Occurrence because the
purchase orders were incorrectly proc
According to AU Section 317- Illegal Acts by Clients .08, the auditor is responsible for
obtaining written representations from management concerning the absence of violations or
possible violations of laws or regulations whose effects should b
Audit- Ethics and Professionalism
Licensed professional- done additional work to be recognized as a CPA.
Expertise attached to it. Expectation that you behave a certain way.
Responsibility to be independent
Competency, experience. What would a reasonable
Title 1- Establishment of PCAOB
Title 2- Auditor Independence- Services the Auditor cannot due (8 of them)
Section 202- non-audit services such as tax require pre approval by AC
203- Audit Partner Rotation- Cannot be lead or concurring partner f
One standard from the AICPA that an external auditor would use as guidance in
order to identify and evaluate typical factors used when assessing risk is SAS 107-Audit
Risk and Materiality when Conducting an Audit. SAS 10