Management and Organizational Studies 3363A/B Chapter Notes - Chapter 1-2: Trial Balance, Hierarchical Organization, Sole Proprietorship

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3363A/B
• Professor: Michelle Loveland

Document Summary

Information from the client, third parties, and observation. Factors that affect the demand for audits: remoteness of information, bias and motives of provider, voluminous data, complex echange transactions, perceived cost/benefit. Issue a report about the reliability of some kind of information: assurance services are auditing services, attestation services are a type of assurance service, a review of financial statements requires less evidence; states that financial statements are plausible. Audit of historical financial statements: fair presentation, the financial statements being audited are the responsibility of both the auditor and management, a review is a lower level of assurance than an audit, still compared to a framework. Internal controls: processes the company uses to complete transitions; for example, for cash, making sure you have two people signing the cheques. It makes sure that people a(cid:396)e(cid:374)"t (cid:449)(cid:396)iti(cid:374)g (cid:272)he(cid:395)ues to themselves/making fraudulent payments: to buy/sell goods, a purchase order must be completed.