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18 Cards in this Set
- Front
- Back
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How reliable are Analytical procedures?
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They are reliable.
Inexpensive. Required at the planning and end stages. |
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When risks are low what tests do you use?
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Analytical procedures. Because it is cheaper than substansive tests.
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How reliable are Inquires of the client?
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Not reliable. Not expensive.
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Recalculation
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Redoing a calculation that was done by a client. Reliable. Accuracy.
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Reproformance .
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Reliable. Moderately costly. Redoing other things than calculations. Like reviewing posting of a journal entry.
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Observation
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The use of the senses to asses client activities. you observe what the clients do. Its not expensive. And its not reliable because people change their behavior knowing the auditor is watching.
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Substantive test of transactions
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These procedures identify the dollar value of a transaction.
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Substantive test of Details and Balances
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Tell Dollar value of the balances.
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Test of Controls include what types of evidence?
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Documentation
Observation Inquiries of the Client Reperformance |
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Substantive tests of transactions include what types of evidence?
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Documentation
Inquires of the client Reperformance Recalculation |
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Analytical procedures include what types of evidence
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Inquires of the client
Analytical procedures |
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Substantive Tests of Details of Balances include what type of evidence
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Physical Examination
Confirmation Documentation Inquires of the client Reproformance Recalculation |
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Audit Documentation or working Papers.
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A record includes
auditing procedures applied evidence obtained conclusions reached. |
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Permanent Files
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Historical or continuing nature pertinent to the current audit. These file provide a convenient source of information about the audit that is a continuing interest from year to year
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Current file
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All information that is pertinent to the current year audit.
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Permanent files include
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extracts or copies of such company documents of continuing importance as the article s of incorporation, bylaws, bond indentures and contracts.
Information related to understanding internal controls and assessing control risk The results of analytical procedures from previous years audits |
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The current files include
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Auditing program of what went down that year.
General information such as audit palanning memos, copies of meeting mins.notes. Working trial balance. Adjusting entries and supporting scheudals provided by clients. |
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What are the 2 main purposes of audit documentation?
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1. Provides evidence that the audit was completed according to the GAAS
2. Provides support for the opinion issued on the financial statements |
