Acc 411: Audit Responsibilities + Objectives

Front 1

5 steps involved in developing audit objectives

Back 1

1) Understanding objectives + responsibilities
2) Divide financial statements into cycles
3) Know management assertions
4) Know general audit objectives
5) Know specific audit objectives

Front 2

4 Responsibilities of Management

Back 2

1) Adopt sound accounting policies
2) Maintain adequate internal controls
3) Making fair representation of financial statements
4) CEO and CFO must certify FS

Front 3

Audit Responsbilities: Material vs. Immaterial (when material?)

Back 3

when error/fraud likely to have change or influence decision of reasonable person

Front 4

Audit Responsibility: Reasonable Assurance (what it mean and due to)

Back 4

Always less than absolutely certain due to nature of sampling, complex estimates in accounting presentation, because fradulent FS difficult to detect

Front 5

Audit Responsbility: Error vs. Fraud (Two types of fraud?)

Back 5

1) Misappropriation of assets
2) Fradulent financial reporting

Front 6

Audit Responsibility: Professional skeptism

Back 6

audit must be planned and performed with professional skept therefore being critical and that dishonesty is always considered

Front 7

Audit Responsibility: to discover illegal acts:__________....and direct effects? indirect effects?

Back 7

violation of laws or government regulatio other than fraud.....direct effects: will have effect on accounts (handle with due care)...indirect effects: due to violations of laws, civil rights (no assurance)

Front 8

Cycles Approach to Auditing (five of them and which journals)

Back 8

Sales + Collections (cash, CR, GJ)
Purch + Payment (purchase, CD, GJ)
Payroll (payroll, GJ)
Inventory + Warehousing (Purch, Sales, GJ)
Capital Acquisition (Purch, CD, GJ)

Front 9

Management assertions about classes of TRANSACTIONS in FS

Back 9

OCCCA
Occurence
Completeness
Classification
Cutoff
Accuracy

Front 10

TRANSACTION related audit objectives

Back 10

CATSOC
Completeness
Accurancy
Timing
Summarization
Occurence
Classification

Front 11

Management assertion about BALANCE on FS

Back 11

CERV+A
Completeness
Existence
Rights
Valuation+Allocation

Front 12

BALANCE-related audit objectives

Back 12

DECCCARR
Detail Tie In
Existence
Completness
Cutoff
Classification
Accuracy
Rights
Realizable Value

Front 13

Management assertion about PRESENTATION + DISCLOSURE on FS

Back 13

COAC
Completeness
Occurence
Accuracy
Classification

Front 14

PRESENTATION-DISCLOSURE related audit objectives

Back 14

COVC
Completeness
Occurence
Valuation
Classification + Understandibility

Front 15

How are audit objectives met?

Back 15

1) Plan and design audit
2) Perform tests
3) Perform analytical procedures
4) Complete audit and issue audit report