ADM 4346 Chapter Notes - Chapter 11: Database, Analytical Review, Internal Control
Document Summary
Auditing: the systematic process of obtaining and evaluating evidence regarding assertions about economic actions and events in order to determine how well they correspond with established criteria. Types of audits: financial, examines the reliability and integrity of: Financial transactions, accounting records, and financial statements. Information system: reviews the controls of an ais to assess compliance with: Internal control policies and procedures and effectiveness in safeguarding assets: operational, economical and efficient use of resources and the accomplishment of established goals and objectives, compliance, determines whether entities are complying with: Investigative: incidents of possible fraud, misappropriation of assets, waste and abuse, or improper governmental activities. The audit process: planning, collecting evidence, evaluating evidence, communicating audit results. Planning the audit: why, when, how, whom, work targeted to area with greatest risk, inherent. Chance of risk in the absence of controls: control. Risk a misstatement will not be caught by the internal control system: detection.