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17 Cards in this Set
- Front
- Back
Evidence
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information auditors use in order to determine if financial statements follow GAAP
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Evidence Decisions
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1) audit procedure to use
2) sample size 3) items to select from population 4) when to perform the procedure |
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Audit Procedure (2 characterisitics)
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detailed instruction of type of audit evidence to be obtained during the audit......considered separately, different from audit to audit
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Audit Program
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list of all different audit procedures that make up the audit. should answer all 4 evidence decisions
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2 Factors affecting persuasiveness of evidence
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Sufficiency and Appropriateness
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Sufficiency
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determined by quantity of evidence (based upon auditor's expectation of mistatements and effectiveness of internal controls)
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Appropriateness
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Quality of of evidence (relevance and reliability)....
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Factors affecting appropriateness..._____ of _______, ____ of client's ____ _____, direct _____ of auditor, _____ of the people providing info, degree of ______, and _____
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Independence of Provider, Effectiveness of client's Internal Controls, Direct Knowledge of Auditor, Qualification of ppl providing, Degree of Objectivity, and Timeliness
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Physical Examination
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inspection or count of a tangible asset
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Confirmation and types (and what must be confirmed)
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receipt of written or oral response from indep 3rd party; positive blank; positive w/ info; negative....A/R must be confirmed...
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Documentation (two types); examine: reasonably ____ study of ____ to determine ____ facts; read: examine ____ info; tracing, vouch: use of ____ to _____ recorded transactions
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examination of clients documents and records (internal and external); detailed,docments,determine; written; docs,verify
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Recalculation; recompute, foot: ____ of column numbers to determine if ____ same as client
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computation to check if correct; addition, calculation
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Observation
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use of senses
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Client Inquiries
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written or oral response to questions
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Re-performance
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rechecking flows of information for proper recording and posting
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Workpapers
records kept by auditor of _____ used, tests ______, ____ ______, and _____ reached |
procedures used, tests performed, information obtained and conclusions reached
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Purposes of Work Papers
provides ____ for _____ audit record of _____ evidence and ____ of tests ____ for type of ____ ____ to issue ____ for _____ by partners |
provides basis for planning audit
record of accumulated evidence and results of tests data for audit report to issue basis for review by partners |