21) Experts, CAATs, Subsequent Events Flashcards
what do we need to look for in an expert?
competence, capability, objectivity
how must the auditor evaluate the expert’s work?
- reasonableness of findings
- relevance of assumptions
- source data
what are the requirements for the agreement with the expert?
- in writing
- contains roles and resp of both A and E
- agreement about communications between them
what is the date of the FS?
end of latest period covered by the FS
what is the date of the auditor’s report?
date on which audit report is dated
what is a subsequent event?
events occurring in time between FS date and date of auditor’s report
what shall the auditor do for events occurring between date of FS and date of audit report?
the auditor shall perform to obtain evidence that all events that require adj/disc have been identified
what shall the auditor do for events occurring after date of audit report but before FS are issued?
- no obligation to perform additional procedures. however, if fact becomes known that may have caused the auditor to amend their report they must discuss with mgmt
what shall the auditor do for events arising after FS are issued?
- no obligation to perform additional procedures. however, if fact becomes known that may have caused the auditor to amend their report they must discuss with mgmt
- mgmt must amend the FS
what is a CAAT?
computer assisted auditing techniques
- computerized methods auditors can use to assist them in performing procedures
what are the two types of CAATs?
system CAATs
data CAATs
what can data CAATs do?
- manipulate computerized data
- recalculate amts
- exception reports
- ratios
- select samples
what do system CAATs do?
make use of test data to test controls
what are the two types of testing that system CAATs can do?
live testing
dead testing
what are the adv and disadv of live testing?
adv = better sense of how systems operate under strain of business
dis = could interfere with operations or corrupt files
