Textbook Notes (280,000)
CA (170,000)
SFU (6,000)
BUS (1,000)
BUS 426 (30)
Chapter 9

BUS 426 Chapter Notes - Chapter 9: Audit Evidence, Risk Assessment, General Ledger

Business Administration
Course Code
BUS 426
Craig Emby

This preview shows page 1. to view the full 4 pages of the document.
Chapter 9
Audit Evidence
Audit Evidence and Associated Decisions
- Risk assessment
o To obtain information for identifying and assessing risks for material misstatement in the financial
statements due to fraud or error
o To plan audit procedure
- Risk response
o The actual audit procedures
o Tests of control
To test the effectiveness of control policies and procedures in support of a reduced
assessed control risk
o Substantive procedures
To detect material misstatements in accounts, including tests of details and analytical
Analytical procedures 3wevaluation of financial information through analysis of
plausible relationships among financial and nonfinancial information
Tests of details audit procedures testing for monetary misstatements in the
details of the classes of transactions, balances, and disclosures in order to
determine whether the transaction related, balance related, and presentation
and disclosure-related audit objectives have been satisfied
Risk Assessment
- For each major class of transactions and material general ledger account, for each relevant assertion,
the auditor looks at the potential for the risk of material misstatement
- Koledge of the liet’s idustr, usiess, ad operatig proedures ill help the auditor complete
the assessment
Audit Evidence Decisions
- Risk which risks could result in a risk of material misstatement at the assertion level?
o Nature which audit procedures to use?
o Extent what sample size to select for a given procedure?
o Timing when to perform the procedures?
Audit Procedures
- The detailed instructions for the collection of audit evidence
- The actual task that you do to obtain evidence with respect to an audit objective
- Need to be detailed and specific what is being done, how is it being, and when
o Inventory observation
Note quantity, location, tag number, unit of measure, and condition
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version