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

Slides:

Advertisements

Similar presentations

Chapter 4 Risk Assessment McGraw-Hill/Irwin

Advertisements

Internal Control in a Financial Statement Audit

Planning for financial attest audit in the context of SAR of Autonomous District Councils.

Learning Objectives LO4 Describe the typical substantive procedures used to address the assessed risk of material misstatement in the main account balances.

Learning Objectives LO1 Explain the importance of auditing. LO2 Distinguish auditing from accounting. LO3 Explain the role of auditing in information risk.

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

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

Learning Objectives LO1 Describe the balance sheet account groups that the major revenue and expense accounts are associated with, as well as the substantive.

Learning Objectives LO1 Explain the key risks of misstatement in production and payroll processes. LO2 Outline the production process: typical transactions,

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

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

Learning Objectives LO6 Develop a simple audit program for an account balance, considering the influences of risk and tolerable misstatement. a. Specify.

S11: Risk Based Audit Approach. Session Objectives  To define audit risks and establish the relationship between materiality and audit risk  To discuss.

CHAPTER 5 OVERVIEW OF THE AUDIT PROCESS Fall 2007 u Overview of the Audit Process u Assessing Audit Risk u Audit Objectives u Materiality u Audit Procedures.

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

SAMPLING. THIRD STANDARD OF FIELD WORK (AU ) “SUFFICIENT COMPETENT EVIDENTIAL MATTER IS TO BE OBTAINED THROUGH INSPECTION, OBSERVATION, INQUIRIES,

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.

Learning Objectives LO1 Outline six general audit techniques for gathering evidence. LO2 Identify the procedures and sources of information auditors can.

Learning Objectives LO1 Outline six general audit techniques for gathering evidence. LO2 Identify the procedures and sources of information auditors can.

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

Learning Objectives LO1 Describe the finance and investment process: risk assessment, typical transactions, source documents, controls, and account balances.

Financial Audit Autonomous Bodies Internal Control and Risk Assessment Session Internal Control and Risk Assessment.

Learning Objectives LO1 Describe the association framework. LO2 Determine whether a PA is associated with financial statements. LO3 Describe the three.

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

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

Learning Objectives LO1 Explain the role of professional judgment in audit sampling decisions. LO2 Distinguish audit sampling work from nonsampling work.

1 CHAPTER 10 Overall Audit Plan and Audit Program.

Learning Objectives LO1 Explain the key risks of misstatement in production and payroll processes. LO2 Outline the production process: typical transactions,

Chapter 5 Internal Control over Financial Reporting

Internal Control in a Financial Statement Audit

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

Internal Control in a Financial Statement Audit

Learning Objectives LO5 Illustrate how business risk analysis is used to assess the risk of material misstatement at the financial statement level and.

Edited By: Dr. Elie Menassa Audit Responsibilities and Objectives Topic 4.

Evaluation of Internal Control System

AUDITING THE REVENUE CYCLE AND RELATED ACCOUNTS

Conducting an Information Systems Audit

Learning Objectives LO1 Explain the role of professional judgment in audit sampling decisions. LO2 Distinguish audit sampling work from nonsampling work.

Slide4.11 Learning Objectives Illustrate risk model Determine level of OAA Identify risks Calculate detection risk.

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

Electronic Presentations in Microsoft ® PowerPoint ® Prepared by Brad MacDonald SIAST © 2009 McGraw-Hill Ryerson Limited.

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

Chapter 3 Audit Planning, Types of Audit Tests, and Materiality McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 6-1 Chapter Six Internal Control in a Financial Statement Audit.

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.

S3: Understanding the Business. Session objective To explain why understanding of the business of the entity is important for the auditor To explain why.

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

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.

Chapter 3 The Audit Process. Overview of Audit Process Developing an Understanding with the Client Financial statement engagements Audits Compilations.

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

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.

The Audit Risk Model Lanfei Gao, Michael Andrews, and Shanaka DeSilva,

©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.

Chapter 6 Internal Control in a Financial Statement Audit McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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

Internal Control in a Financial Statement Audit

Question 4-1 Which of the following statements concerning noncompliance by clients is correct? A. An auditor's responsibility to detect noncompliance.

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

Audit Planning, Types of Audit Tests, and Materiality

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

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

Management Fraud and Audit Risk

The Audit Risk Model (Au 312)

Presentation transcript:

Learning Objectives LO1 Distinguish between management and auditor’s responsibilities regarding an auditee organization’s internal controls. LO2 Explain why the auditor evaluates an auditee’s internal controls. LO3 Define seven internal control objectives, relating them to the assertions in management’s financial statements. LO4 Describe general and application control activities found in an accounting information system.

Control Objectives There are seven control objectives. Each control objective is intended to prevent a class of errors that may lead to material misstatement. LO3

Control Objectives and Financial Statement Assertions Control objectives are closely associated with management’s assertions. LO3

Control Objectives and Financial Statement Assertions An auditor may determine that not all of the control objectives are met for a particular account balance. More substantive work will be required in those areas. This can be seen in the audit risk model AR = IR X CR X DR. LO3

Phases of a Control Evaluation The process of control evaluation takes place in three phases: Understanding control Assessing control risk Testing Controls A major audit goal is to be efficient. This means performing work in minimum time and cost while still doing high quality work. LO3

Audit Cost Trade-off Generally, the more auditors can rely on good internal controls, the less substantive work they need to do. Auditor can opt not to rely on controls, and do extensive substantive procedures. Auditor can perform a complete evaluation of control, assess control risk to be low, and minimize the substantive procedures. Auditor needs to determine the most efficient mix of control and substantive procedures. LO3

Audit Cost Trade-off LO3

Phase 1 – Understanding the Internal Control Understanding the internal controls: Needs to be done early in the audit. Obtain overall acquaintance with: Control environment, Flow of transactions, and Effectiveness of key control procedures. LO3