ACC 406 Final Christensen | Revised Update |
100% Correct Complete Solutions
Auditing definition
systematic process of obtaining and evaluating evidence regarding assertions about event
discover correspondence between assertions and criteria, communicate results
key components of auditing
evidence
assertions
correspondence with established criteria
independence and objectivity
assurance vs attest vs audit
auditing falls within attestation which falls within assurance
what is audit risk
likelihood that material misstatement exists in the financial statements and a clean opinion is
issued by the auditor
as planned level of materiality increases, what happens to evidence
quantity decreases
as auditor's acceptable level of audit risk increases, what happens to evidence
quantity decreases
phases of an audit
,Client acceptance
Engagement activities
Plan
Internal controls
Business process and related accounts
complete
evaluate results and issue report
client acceptance/continuance
review financial info
communicate with previous auditor
consider circumstances
determine independence
determine firms technical skills and knowledge of industry
preliminary engagement activities
determine engagement team requirements
ensure audit team and firm comply with ethical and independence requirements
establish understanding with client
plan the audit
risk assessment procedures
materiality and tolerable misstatement
determine audit steps
obtain understanding of internal control
, consider and audit internal controls
test of controls
management assertions
evidence
ICFR for public companies
substantive tests
test of deatils of transactions and balances
substantive analytical procedures
complete the audit
review contingent liabilities, commitments, subsequent events
evaluate results and issue audit reports
required final analytical procedures for reasonableness
management assertions for balances
Rights and obligations
Existence
Completeness
Valuation
types of audit tests
100% Correct Complete Solutions
Auditing definition
systematic process of obtaining and evaluating evidence regarding assertions about event
discover correspondence between assertions and criteria, communicate results
key components of auditing
evidence
assertions
correspondence with established criteria
independence and objectivity
assurance vs attest vs audit
auditing falls within attestation which falls within assurance
what is audit risk
likelihood that material misstatement exists in the financial statements and a clean opinion is
issued by the auditor
as planned level of materiality increases, what happens to evidence
quantity decreases
as auditor's acceptable level of audit risk increases, what happens to evidence
quantity decreases
phases of an audit
,Client acceptance
Engagement activities
Plan
Internal controls
Business process and related accounts
complete
evaluate results and issue report
client acceptance/continuance
review financial info
communicate with previous auditor
consider circumstances
determine independence
determine firms technical skills and knowledge of industry
preliminary engagement activities
determine engagement team requirements
ensure audit team and firm comply with ethical and independence requirements
establish understanding with client
plan the audit
risk assessment procedures
materiality and tolerable misstatement
determine audit steps
obtain understanding of internal control
, consider and audit internal controls
test of controls
management assertions
evidence
ICFR for public companies
substantive tests
test of deatils of transactions and balances
substantive analytical procedures
complete the audit
review contingent liabilities, commitments, subsequent events
evaluate results and issue audit reports
required final analytical procedures for reasonableness
management assertions for balances
Rights and obligations
Existence
Completeness
Valuation
types of audit tests
