RSM323H1 Chapter Notes - Chapter 10: Audit Risk, Audit Evidence, Control Risks
Document Summary
Types of evidence procedures used in the steps of the audit process: Steps of the audit process and auditor"s objectives. Assessing the risk of material misstatement (inherent and control risks) Inquiries of auditee personnel, including study of prior audit working paper info. Inquiries of external parties, including industry and other research sources. Analysis of draft fss, including comparison to prior years. Observation, including operation of accounting info system and internal control. Obtain indirect assurance regarding risk of material misstatements of monetary amounts in. Substantive testing of details of transactions and account balances: Obtain direct evidence regarding material misstatement of monetary amounts in fss. Dual-purpose tests of controls and substantive details of transactions and balances: Obtain evidence regarding both control effectiveness and material misstatement of monetary amounts in financial statements. Recalculation/reperformance of controls and recording inspections of documents and records. Assess reasonability of overall financial statement amounts, presentation, and related disclosures to ensure fair presentation.
