ACCT 3280 Study Guide - Final Guide: Bank Reconciliation, Reconsideration Of A Motion, Interest Expense

• School: University of Guelph
• Department: Accounting
• Course: ACCT 3280
• Professor: Sandra Scott

Document Summary

Types of evidence: confirmations, documentary, representations, verbal, computational, physical, electronic. Repetitive i/s accounts i. e. sales = just a series of transactions added together: tests of details of balances (e. g. inventory look at year end count rather than series of purchase and sale transactions, control (looking for attributes that indicate controls are working, done mostly at interim and catch up at year end, would only test controls if control risk was low. Systematic selection (every nth) o o: non statistical/judgment (cannot validly extrapolate) o o o. Sampling process: set parameters for the test, review relevant acceptable risk per audit planning, define acceptable level of sampling risk (aracr or aria, define the population, set tolerable error rate (ter) or tolerable $ misstatement, define error for the test, estimate the error rate/misstatement for the population (used by software in determining sample size, set the sample size, and perform test, extrapolate to the population and evaluate the results.