ACCT3309 Study Guide - Midterm Guide: Financial Audit, Audit Evidence, Audit Risk
Document Summary
Chapter 1: quality auditing: why it matters: overview of external auditing, assure. Investment adviser, investment banking services (8) legal services and expert services unrelated to audit (9) any other service pcaob determines. Chapter iii: internal control over financial reporting: responsibilities of management and the external auditor: internal control: helps an organization mitigate the risks of not achieving objectives and goals. E. x. mgmt override, control environment, risk assessment process (b) transaction controls: only certain types of processes are affected, usually do not have a company wide effect (i) Sample recorded transactions and examine underlying evidence while sending out confirmations. Find largest items, smallest items, last transactions, most frequent items, and unusual transactions. Take a sample of cash disbursements to search for unrecorded liabilities. Valuation or allocation select items and trace them back to source documents like purchase agreements and invoices. Select items and verify estimates or other items for disclosure.
