BU477 Chapter Notes - Chapter 10: Accounts Receivable, Spreadsheet, Internal Control
Document Summary
Bu477 chapter 10 notes: the scope, timing, and direction of the audit which guides the development of the audit plan. Combined audit strategy: a strategy for auditing financial statement assertions in which the auditor evaluates control risk below maximum and obtain the audit evidence required by using tests of controls and substantive tests. Substantive audit strategy: a strategy for auditing financial statement assertions in which the auditor evaluates control risk at maximum and obtains the audit evidence required by using substantive tests. Identify the characteristics of the engagement that define its scope. Specific characteristics that increase the scope of the audit: determine the reporting requirements. Vary from audits: co(cid:374)sider the fa(cid:272)tors that are sig(cid:374)ifi(cid:272)a(cid:374)t i(cid:374) dire(cid:272)ti(cid:374)g the audit tea(cid:373)"s efforts. Strategy must consider issues to do with quality control, such as: How resources are managed, directed and supervised. When team briefing and debriefing meetings are expected to be held. How engagement partner and manager reviews are expected to take place.
