Overall Audit Plan and Audit Program Chapter 13. Types of Audit Tests Procedures to obtain an understanding of internal control (Ch 10) Focused on understanding.

Slides:

Advertisements

Similar presentations

Audit Evidence Week 11.

Advertisements

Chapter 13 Overall Audit Plan and Audit Program

Overall Audit Plan and Audit Program

Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.

Management Fraud and Audit Risk

MODERN AUDITING 7th Edition

13 OVERALL AUDIT PLAN AND AUDIT PROGRAM HOW MUCH AND WHAT KIND

Pertemuan 15 Kertas Kerja & Program/Rencana Audit

Overall Audit Plan and Audit Program

Auditing A Risk-Based Approach To Conducting A Quality Audit

Internal Control in a Financial Statement Audit

Auditing Audit Planning and the Audit Program Chapter 10 Audit Planning and the Audit Program Chapter 10.

Section 404 Audits of Internal Control and Control Risk

Chapter 5 Internal Control Evaluation. Chapter 2 Professional Standards.

Learning Objectives LO1 Distinguish between management and auditor’s responsibilities regarding an auditee organization’s internal controls. LO2 Explain.

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Overall Audit Plan and Audit Program Chapter 10.

Learning Objectives LO1 Distinguish between management and auditor’s responsibilities regarding an auditee organization’s internal controls. LO2 Explain.

Chapter 7 Auditing Internal Control over Financial Reporting McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Main Types of Audit Evidence Advanced Auditing Chapter 7 Dr. Mohamed A. Hamada.

1 Chapter 9 Materiality and Audit Risk 2 3 Under which auditing approach(es) are auditors required to obtain an understanding of the internal controls?

©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley Materiality and Risk Chapter 9.

1 CHAPTER 10 Overall Audit Plan and Audit Program.

Considering Internal Control

©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley Overall Audit Plan and Audit Program Chapter 12.

NO FRAUD LEFT BEHIND The Effect of New Risk Assessment Auditing Standards on Schools Runyon Kersteen Ouellette.

Evidence and Documentation

Audit Risk. "Audit risk" means the risk that the auditor gives an inappropriate audit opinion when the financial statements are materially misstated Audit.

[Hayes, Dassen, Schilder and Wallage, Principles of Auditing An Introduction to ISAs, edition 2.1] © Pearson Education Limited 2007 Slide 8.1 Control Risk,

©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Overall Audit Plan and Audit Program Chapter 13.

Conducting an Information Systems Audit

©2003 Prentice Hall Business Publishing, Auditing and Assurance Services 9/e, Arens/Elder/Beasley Overall Audit Plan and Audit Program Chapter 13.

Chapter 6 Internal Control in a Financial Statement Audit Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution.

©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder Overall Audit Plan and Audit Program Chapter 13.

BA 427 – Assurance and Attestation Services Lecture 21 Tests of Controls.

Learning Objectives LO5 Document an accounting system to identify key controls and weaknesses in order to assess control risk. LO6 Write key control tests.

MODERN AUDITING 7th Edition Developed by: Gregory K. Lowry, MBA, CPA Saint Paul’s College John Wiley & Sons, Inc. William C. Boynton California Polytechnic.

OVERVIEW THE AUDIT PROCESS Overview of the Audit Process.

Chapter 5 Evidence and Documentation McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Copyright © 2007 Pearson Education Canada 1 Chapter 11: Overall Audit Plan and Audit Program.

Statement of Auditing Standard No. 94 The Effect of Information Technology on the Auditor’s Consideration of Internal Control in a Financial Statement.

Lecture 9 Audit Evidence

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Section 404 Audits of Internal Control and Control Risk Chapter.

1 Chapter 9 Materiality and Audit Risk 2 3 Under which auditing approach(es) are auditors required to obtain an understanding of the internal controls?

1 chapter 13 Overall Audit Strategy and Audit Program.

1 Overview of PCAOB Auditing Standard No. 5 An Audit of Internal Control Over Financial Reporting that is Integrated with an Audit of Financial Statements.

OVERALL AUDIT PLAN AND AUDIT PROGRAM

©©2012 Pearson Education, Auditing 14/e, Arens/Elder/Beasley Considering Internal Control Chapter 10.

Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. Chapter

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Overall Audit Plan and Audit Program Chapter 13.

McGraw-Hill/Irwin © The McGraw-Hill Companies 2010 Internal Control in a Financial Statement Audit Chapter Six.

 Planning an audit of cost statements, records and other related documents is considered necessary to ensure achievement of audit objectives with available.

©2005 Prentice Hall Business Publishing, Auditing and Assurance Services 10/e, Arens/Elder/Beasley Overall Audit Plan and Audit Program Chapter.

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition Modern Auditing: Assurance Services and the Integrity of Financial.

Internal Control in a Financial Statement Audit

Obtain and document understanding of internal control

Types of tests Risk Assessment Procedures – Auditors use the results of risk assessment procedures to determine the type and amount of further audit.

Developing the Overall Audit Plan and Audit Program

Assessing the Risk of Material Misstatement

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at.

Auditing & Investigations I

Prof. Joshua Onome Imoniana

 Phase I - Client Acceptance  Phase II - Planning  Phase III – Field work/Testing and Evidence  Phase IV – Reporting/Evaluation and Judgment PREPARED.

Chapter 13 Overall Audit Plan and Audit Program

Statement of Auditing Standard No. 94

Chapter 13 Overall Audit Plan and Audit Program

INTERNAL CONTROLS AND THE ASSESSMENT OF CONTROL RISK

Assessing the Risk of Material Misstatement

Overall Audit Strategy and Audit Program

Presentation transcript:

Overall Audit Plan and Audit Program Chapter 13

Types of Audit Tests Procedures to obtain an understanding of internal control (Ch 10) Focused on understanding the design and operation of aspects of I/C necessary to plan the rest of the audit Tests of control (Ch 10) Procedures used to obtain evidence needed to assess control risk.

Types of Audit Tests Analytical procedures (Ch 8) To indicate possible misstatements To indicate possible misstatements To reduce tests of details of balances To reduce tests of details of balances Tests of details of balances Focus on ending G/L balances Substantive tests of transactions Procedures designed to test for dollar misstatements of financial statement misstatements of financial statementbalances.

Types of Audit Tests and the Audit Risk Model Audit risk model Types of audittests Procedures to obtain an understanding of internal control Tests of controls(TOC)Substantive tests of transactions(STOC) ++ AAR AAR IR × CR = PDR

Types of Audit Tests and the Audit Risk Model Audit risk model Types of audittests Analyticalprocedures(AP) Tests of details of balances(TDP)Sufficientcompetentevidence per GASS += AAR AAR IR × CR = PDR

Relationship Between Types of Tests and Evidence (Table 13-2) Type of Test Procedures for I/C Tests of controls Substantive T.O.T. Analytical procedures Tests of details PhysicalexaminationConfirmationDocumentationObservation     Type of Evidence Inquiries of the client          Reperformance Analytical proc.

Audit Assurance at Different Levels of Internal Control Effectiveness (Figure 13-3) Acceptableassurance Noassurance INTERNAL CONTROL EFFECTIVENESS Weak control Strong control Reliance on controls: C 3 – None, C 2 – Some, C 1 – Maximum Audit assurance from control risk assessment and tests of control Audit assurance from substantive tests ACB C3C3C3C3 C2C2C2C2 C1C1C1C1 AUDIT ASSURANCE

Impact of Information Technology on Audit Testing SAS 80 (AU 326) and SAS 94 (AU 319) provide guidance for auditors of entities that transmit, process, maintain, or access significant information electronically.

Impact of Information Technology on Audit Testing Computer assisted audit techniques (CAATS) may be used to test automated controls or data. Reports produced by IT may be used to test the effectiveness of IT general controls. Program change controls Access controls

Variations in Evidence Mix

Designing the Audit Program It is convenient to think of the audit program as consisting of the three major classes of tests: 1.Tests of controls 2.Substantive tests of transactions 3.Analytical procedures Auditing standards require auditors to use a Written audit program.

Remainder of Chapter to be Covered Next Monday