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
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Stages of Study and Evaluation of Internal Control The stages/activities involve in studying and evaluating internal control are: A. Obtaining an understanding of the entity’s internal control structure. B. Assessing the preliminary level of control risk. C. Obtaining evidential matter to support the assessed level of control risk. D. Evaluating the results of evidential matter. E. Determining the necessary level of detection risk. STAGE A. Obtaining an understanding of the entity’s internal
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Success‚” Sydney J. Harris creates a realistic analogy that being successful is like climbing a mountain rather than climbing a ladder. He explains that climbing a mountain is a better description because of how difficult it can be to become successful. He debunks the metaphor “climbing the ladder” by saying “there are no ladders that lead to success‚ although there may be some escalators for those lucky enough to follow in a family’s fortunes” (Harris paragraph 1). I thought that Harris explained his
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What does it all mean? In lecture one “The Study of Ethics”‚ it states philosophy is less about the answer and more about the question. Through these series of questions‚ I initially assumed that every answer held validity and is correct in its own right‚ which they can debatably be deemed as so. So it led me to ask ”what is the sense of questioning when there is no definite answer”. Then I found their use is to challenge ourselves‚ in the sense of checking our perspectives in the everyday encounters
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Final Exam Review Practice Case IPI Case: Required: 1. Identify Accounting System Issues System implementation Lack of training I: people try to override the system‚ inaccurate reporting R: The company who installed the system needs to be contacted and hold training session for employees Glitches I: inaccurate reporting‚ create room for error R: Contact the company again and get them back and give them responsibility to fix the glitches 2. Identify Control Issues: Understaffing
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Case 11.1: The Runners Shop Relevant Guidance • AU 339 (SAS 103): Audit Documentation • Auditing Standard No. 3: Audit Documentation • International Standard on Auditing 230’ (Revised) (Site -http://irba.co.za/documents/doc_00535.pdf ) Questions 1] Describe the purposes of audit documentation and explain why each purpose is important. According to AU 339.03‚ “audit documentation provides the principal support for the”: (a) “representation in the auditor’s report
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According to Paragraph 4 of Auditing Standard No. 3 (PCAOB 2004)‚ “The auditor must prepare audit documentation in connection with each engagement conducted pursuant to the standards of the PCAOB. Audit documentation should be prepared in sufficient detail to provide a clear understanding of its purpose‚ source‚ and the conclusions reached. Also‚ the documentation should be appropriately organized to provide a clear link to the significant findings or issues.” Referring to Paragraph 4‚ the audit
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SOLUTIONS MANUAL to accompany MODERN AUDITING & ASSURANCE SERVICES 3rd edition Prepared by Philomena Leung‚ Paul Coram and Barry Cooper © John Wiley & Sons Australia‚ Ltd 2007 Chapter 1 Auditing‚ assurance and the public accounting profession Review questions 1.1 How does an expanded role of professional accountants affect the accounting profession? The expanded role of professional accountants has affected the accounting profession‚ in
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Week 4 Summary Review Questions 1. Describe the components of an internal/external communications plan. An internal communications plan is for anyone who has been involved in the planning of the project. The external communications plan is built for anyone who has not been involved‚ but need to be. 2. True or False? Communication plans include formal and informal methods of communication. True‚ they include both formal and informal‚ both written and verbal. 3. Describe the different report
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Prelims.qxd 1/31/07 8:22 PM Page i In Praise of Digital Design and Computer Architecture Harris and Harris have taken the popular pedagogy from Computer Organization and Design to the next level of refinement‚ showing in detail how to build a MIPS microprocessor in both Verilog and VHDL. Given the exciting opportunity that students have to run large digital designs on modern FGPAs‚ the approach the authors take in this book is both informative and enlightening. David A. Patterson
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