A3&A4 Flashcards
Walkthrough procedures performed in an issuer’s integrated audit
Inquiring
Observation
Inspection of relevant documentation
Reperformance of controls
@12576
Substantial testing is an audit procedure designed to
Detective material misstatement
@16434
Material account balance, such as A/R or inventory 通常 tested 安排在 ________，只要確認該 account 可以被 ___________.
Interim date
Reasonably predictable
@3037
Substantive testing
之 Test of detail
Auditor’s direct personal knowledge evidence
Observation
Physical examination
Inspection
Recalculation
@7666
Evidence reliability 分成 3 等級
- Auditor’s personal knowledge
- External evidence (Confirmation)
Direct to auditor
Received and held by client - Oral (Inquiry) @4746
@7666
Audit evidence 功能分為
- Reliability
➡️ Quality
(accuracy, completeness, authenticity and susceptibility to management bias) - Sufficiently
➡️ Amount of corroborative evidence obtained
@15946
Analytical procedure is required in _________ & ________,
is not required in ________
Required:
Planning & Final review
Not required
Substantial test
(但是 more effective and efficient than test of details)
@2375
Bill of landing
Vendor’s invoice
Approved purchase order
Material requisition
Open voucher
貨運公司的帳單
賣方出的發票
批准的採購單
材料申請單（生產部門、內部文件）
@3197
尚未支付的憑證
Recordkeepimg 跟 __________ function 要分開
Custody
@7160
Inventory:
Test counts and trace to inventory listing, 是 assertion of
Completeness
@2690
Inventory:
Sample of inventory + physical listing and tracing to the floor (counts) 確認存貨在手，為assertion of
Existence
@2690
Reviewing shipping and receiving cutoff procedures for inventory provide assertion of
Completeness
&
Existence
@2459
Completeness
&
Rights & Obligation
@4704
Confirming inventory at location outside the entity’s premises provides assertion of
Completeness
&
Existence
@4704
Record trace to source is assertion of
Existence
Source trace to record is assertion of
Completeness
Upper deviation rate =
Allowance sample deviation rate
➕
Actual sample deviation rate
@2877
Audit risk 🟰
Inherent risk
➕
Control risk
➕
Detection risk
IR ➕CR🟰RMM
Reviewing shipping and receiving cutoff procedures for inventories provide assurance about
Completeness
&
Existence
of inventory
@2459
Internal control material weakness is a significant deficiency that results ________ possibility that a ________ misstatement of the entity’s F/S will not be prevent, detected or corrected on a timely basis.
Reasonable possibility
Material misstatement
@5387
@3079
Auditors is required to communicate s_____t deficiencies each year, 不論 deficiency has material effect on the auditor’s assessment of control risk or deficiency is considered a m______l weakness
Significant deficiency (in writing)
不管是否 Material weakness
Material weakness 一定是 Significant deficiency
但 Significant deficiency 不一定為 Material weakness
@3099
Significant deficiency communication only within the client’s entity (restricted)
@2558
Hiring personnel v.s. Distributing payroll checks 要分開，是為了要把各自的 _________ function 分開
Hiring: Authorization
Pay check: Custody
@9891
Those in charger with governance 是由哪兩個部門組成
Board of directors
&
Audit committee
@10239
About client’s internal control at audit planning stage 有哪三項關於 Obtain understanding of internal control
✅了解client’s 對內控的
Design & Implementation
✅Identify 潛在的 misstatements
✅Documentation
@10249
另外關於 operating effectiveness 是在之後才 evaluate
@2898
The risk of incorrect ________ & the likelihood of assessing control risk too ________ relate to 🔑effectiveness of the AUDIT
Acceptance
&
Low
@2592
The risk of incorrect ________ & the likelihood of assessing control risk too ________ relate to 🔑efficiency of the audit
Rejection
&
High
@2592
Directional test of details involves tracing _______ from source documents or vouching _______ to the source documents.
forward
&
backward
@7672
Analytical procedure 適用於 ________
的交易，而不適用於 ___________的交易
適用於：
Predictable
不適用於：
Subject to management discretion
ex. Property & equipment transaction
@2400
For testing at ACCOUNT level for issuers, the auditor should compare ________ misstatement to the adjustment amount to determine whether an account balance is materially misstated.
Tolerable
(不是 overall materiality)
@4723
When determining the sample size for a test of controls, the auditor should consider 三項
Expected deviation rate
Tolerable deviation rate
Allowable risk of assessing control risk too low
@2870
The risk of incorrect acceptance
&
The risk of incorrect rejection
are considered in 什麼測試？
Direct test of balance (substantive tests)
@2870
The _______ deviation rate is used to evaluate a balance after a sampling plan has been performed.
Upper
@2870
Risk of incorrect acceptance
可以解釋為
對 ”容許” 錯誤接受的風險
越高造代表容忍度越高
進而造成 sample size 減少
@2581
Significant deficiency & material weakness is required to be reported in WRITING to 二種階級, by the report release date or extending 60 days
Management
&
Those charged with governance
@3731
Test of control 是用 _______ sampling
Substantive procedure 是用 ________ sampling
✅ Test of control
Attribute sampling 屬性抽樣
控制是否運行正常
✅ Substantive procedure
Variable sampling 變性抽樣
金額是否正確
可搭配 Stratify sampling or Ratio estimation
PPS sampling
Probability Proportional to Size sampling
@7163
影響 auditor 決定是否在 Substantial test 使用 Analytical procedure based on
Predictable and plausible data relationship
Reliable & available if data used to develop the expectation
Precision of the expectation @5714
Verification of documentary evidence is 哪個程序
Test of detail
@5714
ex. Verifying depreciation computation provide valuation, allocation & accuracy assertion
@2464
In order to obtain a reasonable basis for an audit opinion, the evidence should be
Persuasive
@7698
Analytical procedure 關鍵字
Comparison
or
Convention
Financial information or data
@7154
The method used to evaluate the reasonableness of accounting estimate
Reviewing subsequent events
Developing an independent expectation
Reviewing & testing the process used to develop the estimate
@2713
Issuer substantial doubt ability 但有 dicsclosure
Auditor 可以給的 opinion
Unqualified + Explanatory paragraph
or
Disclaim
@2992
Regression analysis 是
Predictive analytics
Base on historical data to predict outcome
@14559
