4 Overview of The Audit Process and Preliminary Activities

Question 1

C4
The FS are considered as assettions and representations.
This assertions may be explicitly or implicitly included in the FS.

New set of categories for assertions were provided by PSA 315.

Please provide assettions based on the ff Category:
Classes of transactions and events related dosclosures.POCCAC

Account balances and related disclosures. PACER C

Answer 1

Classes of transactions and events related dosclosures
Presentation
Occurence
Completeness
Cutoff
Accuracy
Classification

Account balances and related disclosures.
Presentation
Accuracy
Completeness
Existence
Rights and obligations
Classification

Question 2

C4
Major audit procedures?

Answer 2

1. Risk Assessment Procedures - assess the RMM whether due to fraud or error
2. Test of controls - evaluate the operating effectiveness of controls
3. Substantive procedures - detect material misstatements.
   Comprise: 1. Test of details 2. Analytical Procedures

Question 3

C4
Substantive procedures comprise?

Answer 3

Comprise:
1. Test of details
2. Analytical Procedures

Question 4

C4
What are the specific audit procedures?
RIA CI RIO

Answer 4

Recalculation
Inquiry
Analytical Procedures

Confirmation
Inspection of Records

Reperformance
Inspection of Tangible Assets
Observation

Question 5

C4
This phase will require a decision from the auditor whther or not to accept the engagement

Answer 5

Preliminary Engagement Activities

Question 6

C4
Evidence Gathering or Substantive Testing will always be performed by the auditor

Answer 6

Yes