ADMS 4551 Chapter Notes - Chapter 9: Audit Risk, Internal Control, Sarbanes–Oxley Act

• School: York University
• Department: Administrative Studies
• Course: ADMS 4551
• Professor: Larry Yarmolinsky

Document Summary

Indication of controls relevant to assessment of control risk: flow chart s(cid:455)(cid:373)(cid:271)oli(cid:272), diag(cid:396)a(cid:373)(cid:373)ati(cid:272) (cid:396)ep(cid:396)ese(cid:374)tatio(cid:374) of (cid:272)lie(cid:374)t"s se(cid:395)ue(cid:374)tial flo(cid:449) i(cid:374) organization of documents. Identifies inadequacies facilitates clear understanding of how system operates. Inspect program change requests & system test identify program changes: evaluate internal control implementation, consider- If controls implemented: controls would achieve objective, adequacy of it. If qualified person carrying out control: common methods, update & e(cid:448)aluate auditor"s pre(cid:448)ious e(cid:454)perie(cid:374)(cid:272)e (cid:449)ith e(cid:374)tit(cid:455) Identify specific relevant controls: review descriptive info of (cid:272)lie(cid:374)t"s s(cid:455)ste(cid:373, consider 5 control activities check ch 8. Identify & include key controls -that are expected to impact objective: associate controls with related audit objectives (assertions, each control satisfies 1+ control objective. Permit reduction in control risk: after assessment of control risk made complete 3 control risk rows evidence planning worksheet (ch 7 p. 234) Inspect documents, records, & reports: must consider it used to create documents/records if general control adequate.