The Audit
When you use this revision guide, please remember these following rules:
1. This is just a guideline. It only intends to improve your revision process. It certainly does not intend to cover everything in the exam. It is very possible that some questions, which are not covered in this revision guide, may appear in the exam.
2. You should refer primarily to other material, such as textbook, lecture notes and class exercises.
3. When you use this guideline, try to understand the fundamental principles and please don’t try to memorize the information.
Topic 3B- Management assertions and audit objectives
- Define management assertions and the related audit objectives
- Describe management assertions related to class of transactions, balances and presentation and disclosures
- List out and describe general transaction related audit objectives, balance related audit objectives and presentation and disclosure audit objectives
- Understand specific audit objectives and how they are linked to general audit objectives and management assertions
Topic 4 – Audit evidence and Planning (Chapter 5 and 6)
AUDIT EVIDENCE
Nature of evidence
• Any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria
• The use of evidence is not unique to auditors:
• It is also used extensively by scientists, solicitors and historians
Audit evidence decisions
• Audit procedures:
Detailed instruction for the collection of audit evidence
• Sample size:
Is likely to vary from audit to audit
• Items to collect:
Which items in the population to test
• Timing:
Can vary from early in the accounting period to long after it has ended
• Audit program:
List of audit procedures for an audit area or an entire audit
• Usually includes sample sizes, items to select and timing of the tests
Most auditors use computers to prepare them
Persuasiveness of evidence
ASA 500 requires the
1. This is just a guideline. It only intends to improve your revision process. It certainly does not intend to cover everything in the exam. It is very possible that some questions, which are not covered in this revision guide, may appear in the exam.
2. You should refer primarily to other material, such as textbook, lecture notes and class exercises.
3. When you use this guideline, try to understand the fundamental principles and please don’t try to memorize the information.
Topic 3B- Management assertions and audit objectives
- Define management assertions and the related audit objectives
- Describe management assertions related to class of transactions, balances and presentation and disclosures
- List out and describe general transaction related audit objectives, balance related audit objectives and presentation and disclosure audit objectives
- Understand specific audit objectives and how they are linked to general audit objectives and management assertions
Topic 4 – Audit evidence and Planning (Chapter 5 and 6)
AUDIT EVIDENCE
Nature of evidence
• Any information used by the auditor to determine whether the information being audited is stated in accordance with established criteria
• The use of evidence is not unique to auditors:
• It is also used extensively by scientists, solicitors and historians
Audit evidence decisions
• Audit procedures:
Detailed instruction for the collection of audit evidence
• Sample size:
Is likely to vary from audit to audit
• Items to collect:
Which items in the population to test
• Timing:
Can vary from early in the accounting period to long after it has ended
• Audit program:
List of audit procedures for an audit area or an entire audit
• Usually includes sample sizes, items to select and timing of the tests
Most auditors use computers to prepare them
Persuasiveness of evidence
ASA 500 requires the