Information Quality and Assurance - A Management Perspective
ACCT 430
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Spring 2014
Review Sheet 430 Exam 2
Definitions of Independence
> External Auditors Not work and have financial interest in the company
In Fact: the auditor is actually unbiased or intellectually honest, free from any obligations
or interest in the company, its mana
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2014
430 Exam 1 Review Sheet
Auditors Independence <in fact and in appearance are separate but equally
necessary>
In Fact: the auditor is actually unbiased or intellectually honest, free from any
obligations or interest in the company, its management and its
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2014
430 Final Exam Review
Notes from Lecture Slides
> Why Financial Statements Audit? > Strengthen investor confidence in capital market & Improve both
internal and external decision making
> Key players of FSA Companys Management, External Auditors and Audit
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 1 Notes
Objectives and focus of the course
Corporate Governance
Internal Control
From two perspectives
Management
External auditor
Corporate Governance
The process by which the corporation is directed to achieve accountability to stakeholders (
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 2 Objectives of internal control
Reliable financial reporting
Follows GAAP in all material respects which means:
o
o
o
o
o
o
o
Payments made and recorded are authorized
Transactions recorded timely
Disclosure -transparent; documentation exists
Accur
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 5-7 Notes
Risk Assessment/Management
Process
Establish clear objectives ( with regard to operating, reporting and compliance)
Establish an appetite for risk in each objective established
Assess inherent risks to the achievement of those objective
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 17
Recap of Class 16
The audit process
Define specific control objectives (which are derived from the GAAP objectives
outlined in COSO) for each account
Test and evaluate managements achievement of those objectives
Based on the results of this ev
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 18 Assessing Inherent and Audit Risk
Definitions
Audit Risk (materiality) (AR) The risk that the audit will fail to detect a material misstatement.
The objective of the entire planning process is to make sure we direct our efforts to the places
this
Information Quality and Assurance - A Management Perspective
ACCT 430
-
Spring 2015
Class 20
Analytical ProceduresEvaluation of financial information made by a study of plausible
relationships among both financial and non-financial data (AU 329)
Required by AU 329 as part of the planning process in order to
o Understand business
o Direct
