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12 Cards in this Set
- Front
- Back
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What are the four audit evidence decisions need to create an Audit Program
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1) WHICH audit procedures to use
2) WHAT sample size to select for a given procedure 3) WHICH items to select from the population 4) WHEN to perform the procedures (timing) |
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What are the two determinants, from the third standard of field work, of persuasiveness of evidence
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Appropriateness and sufficiency
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What are 6 characteristics of reliable evidence
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Independence of provider
Effectiveness of clients internal controls Auditors direct knowledge Qualification of individuals providing the information Degree of objectivity Timeliness |
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What are the 8 types of audit evidence
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Physical examination
Confirmation Documentation Analytical procedures Inquiries of the client Recalculation Reperformance Observation |
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What are 3 uses of analytical procedures
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Understand the clients industry and business
Assess the entity's ability to continue as a going concern Indicate the presence of possible misstatements in the financial statements Can reduce detailed audit tests |
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What are 3 purposes of audit documentation
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The basis for planning the audit
Record of evidence accumulated Provides information for review of work by others |
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Who owns audit files
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Audit documents and working papers are the property of the AUDITOR.
Only a subpoena by a legal authority can support the unwanted relaease of the documents |
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What does rule 301 of the code of professional conduct pertain to
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Confidentiality of audit files
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Exceptions to Rule 301
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Court subpoenas or as part of an AICPA, State society, or accountancy Board approved peer review program with other CPA firms
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What is the main controlling document of an audit
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Audit Program
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What are the 5 guideline used when preparing audit documentation
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Each audit should be properly identified
Documentation should be indexed and cross_referenced Completed documentation must clearly indicate the audit work performed It should include sufficient information It should PLAINLY state the Conclusions reached |
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What effect does e-commerce have on an audit
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Auditors must evaluate how electronic information affects their ability to gather evidence
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