• Auditing & Assurance
    16/05/2012 ACCY342 Auditing & Assurance Services Autumn Session 2012 Lecture 11 17/05/2012 Chapter 11 Substantive Testing and Income Statement accounts Risk and substantive procedures 1. Differences between auditing Income Statement and Balance Sheet accounts    Balance sheet...
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  • PSA 520
    suitability of particular substantive analytical procedures is influenced by the nature of the assertion and the auditor’s assessment of the risk of material misstatement. For example, if controls over sales order processing are weak, the auditor may place more reliance on tests of details rather than on...
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  • Isa 520
    material misstatement. For example, if controls| |over sales order processing are deficient, the auditor may place more| |reliance on tests of details rather than on substantive analytical procedures| |for assertions related to receivables.|| A10.|Particular substantive analytical...
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  • Auditing
    attainable * Timing of appointment is such that auditor unable to evaluate significant appropriate audit evidence (e.g. counting of inventory) * Controls are not effective but auditor decides substantive tests or procedures performed are not sufficient Emphasis of Matter Paragraphs...
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  • audit test
    in the general ledger. Learning Zone Relationship between tests of controls and Analytical procedures substantive tests In tests of controls, an exception is only Bright readers may have noticed that analytical an indication of the likelihood of errors or procedures serve as...
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  • The Concepts of Cpa
    . INTRODUCTION In an examination of actual audit working papers, the Public Oversight Board’s Panel on Audit Effectiveness (2000) concluded that in 20 percent of the situations where substantive analytical procedures were used as the primary substantive test in a given area, the analytical...
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  • Analytical Procedures – a Powerful Tool for Auditors by David Chow
    financial statements are fairly stated: (i) procedures to obtain an understanding of internal control (ii) tests of controls (iii) substantive tests: • substantive tests of transactions; • analytical procedures; and • tests of details of balances. assessment of risks of material misstatement...
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  • Acca F8 Toc
    .  14 | P a g e Examine receipts subsequent to year end. www.canotes.net Talib e doa: Atif Abidi Substantive Procedures – Account Balances CASH BALANCE  Perform cash count at year end. Completeness Tests of Details Existence  Review reconciliation between balance of...
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  • Analytical Procedures
    tests of controls and substantive tests of details), with respect to financial statement assertions for one or more audit areas. Substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be more predictable over time. The...
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  • No File
    and distinguish substantive testing and test of control. 3.6 Explain the different types of audit files and working papers, substantive and test of controls and types and sources of audit evidence. 3.7 Apply the relevant audit procedures to the relevant audit cycles and items of...
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  • ACC431
    controls and substantive tests of transactions audit procedures have been discussed, not sample size, or items to select. Also discuss, again, the relationship between tests of controls and substantive tests of transactions and the rest of the audit. Figure 14-7 (page 465) provides a good...
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  • Chapter 13 Lc
    Chapter 13 Audit Sampling |Learning Check | 13-1. No. Audit sampling is applicable to both tests of controls and substantive tests. However, it is not equally applicable to all auditing procedures. For example, it is widely used in vouching, confirming, and tracing, but...
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  • Audit Chapter 9 Notes
    * Allowance for Control Tests: a 7% deviation rate + or – 2% means the controls do not work between 9% and 5% or the time * Allowance for Substantive Tests: a $10,000 account balance + or - $1500 means the actual amount will likely lie between $11,500 and $8,500 * The more confident I...
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  • Auditors Serious: Cash Audits
    based on the auditor’s opinion to see or detect any material misstatement at the assertion level provided by management ("Difference Between Substantive Analytical Procderure and Analytical Procedures," 2012). It is important to review how these two tests or procedures relate to cash. Since cash...
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  • Intwernal Control & Audit of Financial Statements
    application of the control by the auditors. etc. Differences between test of control and substantive test. A test of control tests that the clients internal control procedures seem to be working properly. For example, the client might use monthly bank reconciliations to help to ensure that the cash account...
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  • Week 5 Solutions
    been recorded. c. Procedures 2, 3, and 4 are tests of controls. Procedures 1, 5, and 6 are substantive tests of transactions. d. | (1) OCCURRENCE | (2) COMPLETENESS | (3) POSTING AND SUMMARIZATION | SUBSTANTIVE TEST OF TRANSACTIONS | Procedure...
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  • Chapter 19
    Audit procedures substantive tests of transactions Sample size for acquisitions and cash Items to select disbursements to meet Timing transaction-related audit objectives ©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 19 - 18 Understand Internal Control  Study the...
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  • Design Tests
    Design tests of controls, substantive tests of transactions, and analytical procedures for the following Apollo Shoes cycles: o Inventory and warehousing cycle o Cash cycle 1. Abstract, Inventory and warehousing cycle (tests of controls) YOLANDA 2. Intro, Inventory and warehousing...
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  • Cga Assignment Au1
    of inherent risk and control risk, a decrease in detection risk, and an increase in the amount of evidence required. Task: 3 3a Substantive audit procedures   | Test of Control procedure | Substantive Procedure | Objective of the Procedure | 1. Validity 2. Completeness 3. Authorization...
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  • Essay
    Chapter 13 Overall Audit Plan and Audit Program ← Review Questions 13-1 The five types of tests auditors use to determine whether financial statements are fairly stated include the following: ← Risk assessment proceduresTests of controlsSubstantive...
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