Auditing ch15 solutions (rubix cube cover)
CHAPTER 15
Completing the Audit
LEARNING OBJECTIVES
1
2
3
4
5
6
7
8
Describe the balance sheet account groups that the major revenue and expense accounts are associated with, and the substantive analytical procedures applied to audit revenues and expenses. Outline the overall analytical procedures to be performed at the final stage of the audit, including analysis of the income statement, the cash flow statement, financial statement presentation and disclosures.
Explain the purpose of lawyers’ letters and how they are used at the completion stage of an audit to identify any contingencies.
Explain why written management representations are obtained, and the items generally included in the representation letter including identification of related parties.
Given a set of facts and circumstances, classify a subsequent event by type and proper treatment in the financial statements, and outline the implications of the timing of discovery of the event for the auditor’s report.
Explain the final steps for overall review and evaluation of audit evidence documented in the working papers, adjusting entries resulting from the audit, engagement quality control reviews, and how professional judgment is applied to form the audit opinion.
Summarize the auditor’s communications throughout and at the conclusion of the engagement.
Apply and integrate the chapter topics to design audit procedures for detecting misstatements due to error or fraud at the overall completion stage of the audit.
Review
Checkpoin
ts
1-3
Exercises and Problems
8
7,9,10
4-6
8
7,9,10
7-9
4
8
10-12
1,2,3,6
1
13-18
3
2,3,4,
11,12
19-23
5,7
5,6,13,14
24-26
9
27
Copyright © 2010 McGraw-Hill Ryerson Ltd.
Discussio n Cases
5
483
POWERPOINT SLIDES
PowerPoint slides are included on this site. Please take special note of:
*
*
*
*
Audit of revenues
Completing the Audit
LEARNING OBJECTIVES
1
2
3
4
5
6
7
8
Describe the balance sheet account groups that the major revenue and expense accounts are associated with, and the substantive analytical procedures applied to audit revenues and expenses. Outline the overall analytical procedures to be performed at the final stage of the audit, including analysis of the income statement, the cash flow statement, financial statement presentation and disclosures.
Explain the purpose of lawyers’ letters and how they are used at the completion stage of an audit to identify any contingencies.
Explain why written management representations are obtained, and the items generally included in the representation letter including identification of related parties.
Given a set of facts and circumstances, classify a subsequent event by type and proper treatment in the financial statements, and outline the implications of the timing of discovery of the event for the auditor’s report.
Explain the final steps for overall review and evaluation of audit evidence documented in the working papers, adjusting entries resulting from the audit, engagement quality control reviews, and how professional judgment is applied to form the audit opinion.
Summarize the auditor’s communications throughout and at the conclusion of the engagement.
Apply and integrate the chapter topics to design audit procedures for detecting misstatements due to error or fraud at the overall completion stage of the audit.
Review
Checkpoin
ts
1-3
Exercises and Problems
8
7,9,10
4-6
8
7,9,10
7-9
4
8
10-12
1,2,3,6
1
13-18
3
2,3,4,
11,12
19-23
5,7
5,6,13,14
24-26
9
27
Copyright © 2010 McGraw-Hill Ryerson Ltd.
Discussio n Cases
5
483
POWERPOINT SLIDES
PowerPoint slides are included on this site. Please take special note of:
*
*
*
*
Audit of revenues