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11 Cards in this Set
- Front
- Back
- 3rd side (hint)
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What is a sig def?
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Matters representing sig def in the design and/or operation of an entity's ICS that could adversley affect the entity's ability to support its f/s assertions. Should be communicated to audit committee.
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What is a MW?
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ICS does not reduce to a relatively low level the risk of undetected material errors.
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Types of SD's that should be communicated to audit committee.
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Inadequacies
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What guidelines should a report on MW be consistent with?
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1. State the purpose of audit was not to provide assurance cocerning the ICS.
2. It is solely to be used by audit committee and mngmt or other restrictions. 3. State defintion of MW. 4. Don't say no SD's were found. |
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What is evidential matter?
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Source doc's, data & corrobating info that supports the f/s. Basically stuff that supports f/s.
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What determines the suffiency of evidential matter?
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Judgement call. Auditor must accumulate enough to support reasonable basis for forming an opinion.
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What types of proc's are considered substantive tests?
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1. Detailed tests of trans.
2. Substantive analytical proc's 3. Detailed tests of account balances |
DAD
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What's the diff btw tests of trans & tests of balances?
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Tests of trans are concerned with activity and trans cycles during the fiscal yr.
Tests of balances are concerned with yr-end balance. Tests for accuracy of individual accts at BS date. |
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What are some substantive tests that can be performed prior to the BS date?
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1. Additions and disposals to PPE
2. Increases and reductions in other assets, debt & equity accts. 3. Analytic review of inc & exp accts. |
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What is the primary means of obtaining evidence concerning litigation?
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Obtain a legal representation letter on all mat'l matters. This should be sent directly to the auditor.
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What are the limitations on the scope of the lawyers response?
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1. Matters of substantive attention
2. Mat'l matters |
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