MGAD10H3 Chapter Notes - Chapter 6: Audit Risk, Audit Evidence, Financial Statement

570 views3 pages
Published on 29 Jun 2013
School
Course
Professor
Chapter 6 overview of tests of controls, substantive procedures, and sampling
1. Understand the difference between tests of controls and substantive tests
2. Explain the factors that impact the nature, timing, and extent of audit testing
3. Explain how audit sampling is used in an audit
4. Understand the difference between sampling and non-sampling risk
5. Differentiate between statistical and non-statistical sampling
6. Describe sampling methods and the factors to be considered when choosing a sample
7. Determine the factors that influence the sample size when testing controls
8. Determine the factors that influence the sample size when substantive testing
9. Outline how to evaluate the results of tests conducted on a sample
CAS 200 overall objectives of the independent auditor
CAS 300 planning an audit of financial statements
CAS 330 the auditor’s responses to assessed risks
CAS 530 audit sampling
6.1 tests of controls and substantive procedures
Audit strategy strategy that sets the scope, timing, and direction of the audit and
provides the basis for developing a detailed audit plan
6.1.1 tests of controls
Conducted to establish that controls: operate effectively and consistently
Common procedures: inspection for authorization, performance of tasks, enquiry of
client personnel, re-performance
6.1.2 substantive procedures
There are three types of substantive procedures: substantive tests of transactions,
balances, and analytical procedures
6.2.1 nature of audit testing
Purpose of the test and the procedure used (i.e. to input data and see the control
reactions)
6.2.2 timing of auditing testing
When procedures are performed (i.e. test of controls can be done during interim period)
For high-risk accounts, the timing of most audit procedures will be at, or after, year end
6.2.3 extent of audit testing
The amount of audit evidence gathered when testing controls and conducting detailed
substantive procedures
6.4 sampling
Unlock document

This preview shows page 1 of the document.
Unlock all 3 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Cas 200 overall objectives of the independent auditor. Cas 300 planning an audit of financial statements. Cas 330 the auditor"s responses to assessed risks. 6. 1 tests of controls and substantive procedures. Audit strategy strategy that sets the scope, timing, and direction of the audit and provides the basis for developing a detailed audit plan. Conducted to establish that controls: operate effectively and consistently. Common procedures: inspection for authorization, performance of tasks, enquiry of client personnel, re-performance. There are three types of substantive procedures: substantive tests of transactions, balances, and analytical procedures. Purpose of the test and the procedure used (i. e. to input data and see the control reactions) When procedures are performed (i. e. test of controls can be done during interim period) For high-risk accounts, the timing of most audit procedures will be at, or after, year end. The amount of audit evidence gathered when testing controls and conducting detailed substantive procedures.

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.