Management and Organizational Studies 3363A/B Chapter Notes - Chapter 5: Audit Evidence, Risk Assessment, Internal Control

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

Document Summary

Audit procedures: audit procedure detailed instruction for the collection of a type of audit evidence, asking why (purpose) and how (what audit procedures) Attend year-end inventory count and observe client taking physical inventory count: the audit procedure used will depend on the assertion being tested, three categories of audit procedures, risk assessment procedures. Includes test of details and analytical procedures: detects monetary misstatements by looking at evidence that supports the f/s. Audit program detailed instructions for the entire collection of evidence for the audit: specifies sample size, items to select and timing. If clients internal controls are effective: more reliable when internal controls are effective, degree of objectivity, the higher the degree of objectivity, the more reliable the evidence is. Sufficiency: sufficiency the quantity of evidence; appropriate sample size; degree of precision, factors that determine the appropriate sample size, auditors expectations of errors.