Acc 411: Audit Evidence

Front 1

Evidence

Back 1

information auditors use in order to determine if financial statements follow GAAP

Front 2

Evidence Decisions

Back 2

1) audit procedure to use
2) sample size
3) items to select from population
4) when to perform the procedure

Front 3

Audit Procedure (2 characterisitics)

Back 3

detailed instruction of type of audit evidence to be obtained during the audit......considered separately, different from audit to audit

Front 4

Audit Program

Back 4

list of all different audit procedures that make up the audit. should answer all 4 evidence decisions

Front 5

2 Factors affecting persuasiveness of evidence

Back 5

Sufficiency and Appropriateness

Front 6

Sufficiency

Back 6

determined by quantity of evidence (based upon auditor's expectation of mistatements and effectiveness of internal controls)

Front 7

Appropriateness

Back 7

Quality of of evidence (relevance and reliability)....

Front 8

Factors affecting appropriateness..._____ of _______, ____ of client's ____ _____, direct _____ of auditor, _____ of the people providing info, degree of ______, and _____

Back 8

Independence of Provider, Effectiveness of client's Internal Controls, Direct Knowledge of Auditor, Qualification of ppl providing, Degree of Objectivity, and Timeliness

Front 9

Physical Examination

Back 9

inspection or count of a tangible asset

Front 10

Confirmation and types (and what must be confirmed)

Back 10

receipt of written or oral response from indep 3rd party; positive blank; positive w/ info; negative....A/R must be confirmed...

Front 11

Documentation (two types); examine: reasonably ____ study of ____ to determine ____ facts; read: examine ____ info; tracing, vouch: use of ____ to _____ recorded transactions

Back 11

examination of clients documents and records (internal and external); detailed,docments,determine; written; docs,verify

Front 12

Recalculation; recompute, foot: ____ of column numbers to determine if ____ same as client

Back 12

computation to check if correct; addition, calculation

Front 13

Observation

Back 13

use of senses

Front 14

Client Inquiries

Back 14

written or oral response to questions

Front 15

Re-performance

Back 15

rechecking flows of information for proper recording and posting

Front 16

Workpapers
records kept by auditor of _____ used, tests ______, ____ ______, and _____ reached

Back 16

procedures used, tests performed, information obtained and conclusions reached

Front 17

Purposes of Work Papers
provides ____ for _____ audit
record of _____ evidence and ____ of tests
____ for type of ____ ____ to issue
____ for _____ by partners

Back 17

provides basis for planning audit
record of accumulated evidence and results of tests
data for audit report to issue
basis for review by partners