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7 Cards in this Set
- Front
- Back
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What are the five types of audit tests? |
1. Risk assessment procedures Further tests 2. Tests of controls 3. Substantive tests of trx 4. Substantive analytical procedures 5. Tests of details of balances |
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How does the auditor decide what types of tests to perform? |
The risk assessment lets the auditor know how many further tests to conduct. Choices are further influenced by: -the availability of types of evidence for further audit procedures -and the relative costs of those tests |
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What sort of procedures might an auditor use in tests of controls? |
-make inquiries of appropriate client personnel -examine documents, records, and reports -observe control-related activities -re-perform client procedures |
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What two things does the amount of additional evidence required for tests of controls depend on? |
1. the extent of evidence obtained in gaining the understanding of internal control 2. the planned reduction in control risk |
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What are substantive tests? |
They are procedures designed to test for dollar misstatements that directly affect the correctness of FS balances. |
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What are the trx related audit objectives? |
1. occurrence 2. completeness 3. accuracy 4. posting and summarization 5. classification 6. timing |
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What are the balance related audit objectives? |
1. existence 2. completeness 3. accuracy 4. detail tie-in 5. classification 6. cutoff 7. realizable value 8. rights and obligations |
