MGAD10H3 Lecture Notes - Retained Earnings, Accrual, Audit Risk
Document Summary
Chapter 10 substantive testing and balance sheet accounts. Cas 610 using the work of internal auditors. Accounts that are trivial or immaterial are usually ignored or subject to analytical procedures. Reviewing events occurring prior to year end: payroll bonuses or major fa additions/disposals. Reviewing activity in the period to date: things such as ar can be done during interim visit. Performing general audit procedures prior to year end: bod minutes, je, and legal can be done throughout the year. Reviewing provisions prior to year end: based on system-generated assessment, it can be carried forward. Leverage off internal audit: cas 610 outlines auditor"s responsibilities. 10. 1. 3 matters to consider when designing substantive procedures. Ensure that substantive procedures respond to specific risks: understand the risks (i. e. assets = overstatement, thus test for existence, occurrence, and valuation assertions) Take credit for work already undertaken: can take the work, but needs to understand their approach first.
