AUD 3 Internal Control 16 - 1 Operating Cycles - Investing and Financing Cycle Flashcards
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acq________ and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and dis_______ of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with tran________ involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The in_______ and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and fi_______ cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than in_______
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of as_____ other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and tran_______ with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with cre_____ and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and sha________.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle de___ with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Lately the exam has done significant testing on Derivatives in the TBS section of the Audit exam.
Substantive testing for derivatives will be covered in more detail in the audit evidence section.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Lately the exam has done significant testing on Derivatives in the TBS section of the Audit exam.
Substantive testing for derivatives will be covered in more detail in the audit evidence section.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few tran_________ in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical ye__ for a client,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
Investing and Financing Cycle
Since there are typically very f__ transactions in these areas in a typical year for a client,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an au_____ will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most effi_____ to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control str_______
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it m___ efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ig____ the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal c_______ structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply t___ the few transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the f__ transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few tra________ that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few transactions that took place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few transactions that t__k place.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client,
an auditor will often find it most efficient to ignore the internal control structure
and simply test the few transactions that took place.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls;
- Assess risk of material misstatement at the same level as inherent risk, assuming that control risk is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls;
- Assess risk of material misstatement at the same level as inherent risk, assuming that control risk is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Not t___ the controls
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Not test the controls
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Not test the con_____
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Not test the controls
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• N__ test the controls
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Not test the controls
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls
- Assess ri__ of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls
- Assess risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls
- Assess risk of ma______ misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls
- Assess risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Ass___ risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the sa__ level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the same le___ as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the same level as inherent risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement at the same level as inh_______ risk,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent r___ (IR),
assuming that control risk is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that co_____ risk is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control ri__ (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
as___ing that control risk (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the ma________ level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a h___ RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally re____ing in a high RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high R___
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high ____
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
assuming that control risk (CR) is at the maximum level,
generally resulting in a high RMM
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce det______ risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk (DR) by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce detection ri__ by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by pe______ing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Re____ detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive t___s.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive sub_________ tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing ex________ substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
• Reduce detection risk by performing extensive substantive tests.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the au_____ will:
- Not test the controls;
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk (DR) by performing extensive substantive tests.
Investing and Financing Cycle
The investing and financing cycle deals with transactions involving acquisition and disposal of assets other than inventory and transactions with creditors and shareholders.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls;
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM; and
- Reduce detection risk (DR) by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not t___ the controls;
- Assess risk of material misstatement (RMM) at the sa__ level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a hi__ RMM;
RMM = IR CR = Maximum
and
• Reduce detection risk (DR) by performing extensive substantive tests.
Investing and Financing Cycle
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
In this case, the auditor will:
- Not test the controls;
- Assess risk of material misstatement (RMM) at the same level as inherent risk (IR), assuming that control risk (CR) is at the maximum level, generally resulting in a high RMM;
RMM = IR CR = Maximum
and
• Reduce detection risk (DR) by performing extensive substantive tests.
Investing and Financing Cycle
In those less fre______ cases where a large number of transactions have occurred,
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
Investing and Financing Cycle
In those less frequent cases where a la___ number of transactions have occurred,
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
Investing and Financing Cycle
In those less frequent cases where a large number of tran_______ have occurred,
the auditor may find it more efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more effi_____ to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it m___ efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to r__y on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control str______ rather than test the numerous transactions that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure rather than t___ the numerous transactions that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure rather than test the numerous tran_______ that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred,
the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occ___ed, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement based on the results of the tests of controls; and
- Accept higher detection risk by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement based on the results of the tests of controls; and
- Accept higher detection risk by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Te__ the controls to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the con_____ to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to det_______ their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to determine their effe_______ss;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Test the controls to determine their effectiveness;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the ri__ of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Re____ the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) b__ed on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the re___ts of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the t___s of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the tests of con_____;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
- Accept higher det______ risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls; and
- Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
- Ac____ higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls;
- Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept hi__er detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by per____ing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only li___ed substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited sub_______ tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive te__s.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
• Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those l__s frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls; and
- Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In this case, the auditor will:
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls; and
- Accept higher detection risk (DR) by performing only limited substantive tests.
Investing and Financing Cycle
As with the other cycles, the au_____ is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is con____ed with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the rel_________ of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the int______ control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control pro_______s to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the ma________ assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management as________s on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial sta______ts.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of con_____ that support the assertions with regard to investments include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the as_______ with regard to investments include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to inv________s include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Pre________ and Disclosure
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Di__________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• P____________ and D__________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Exi_______ or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occ_______
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• E__________ or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or O__________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Existence or Occurrence
- Ri_____ and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Existence or Occurrence
- Rights and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Existence or Occurrence
- Rights and Ob_________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Existence or Occurrence
- Rights and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• R_______ and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and O_________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Rights and Obligations
- Com__________ and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Rights and Obligations
- Completeness and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Rights and Obligations
- Completeness and Cut___
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Rights and Obligations
- Completeness and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• C__________ and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and C_____
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Val_______, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Valuation, All_________ and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Valuation, Allocation and Acc______
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• V________, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, A________ and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and A________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- P___________ and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and D__________
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- E________ or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or O_________
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- R_____ and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and O_________
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- C__________ and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and C_____
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- V________, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, A_________ and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and A_________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- ____________________
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- ____________________
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- ___________________
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- ______________________
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- _____________________________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller det_________ that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The con_______ determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that sec_______ are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are cla______ in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the rec_____ correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records co_____ly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading sec______,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
tra_____ securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
a_______-for-sale securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-s___ securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or h___-to-maturity securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-ma_____y securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
b__ed on management decisions
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on ma_________ decisions
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management de______ as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the int___ of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of h___ing them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Pr_________ and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Di_________
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The con______ determines that se_______ are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
tra_____ securities,
available-for-s___ securities,
or held-to-ma_______ securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
tra_____ securities,
ava_____-for-sale securities,
or he__-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as
trading securities,
available-for-sale securities,
or held-to-maturity securities,
based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The tr________ vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vo_____s the agreement
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agr_______
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of br_____ advices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker ad_____
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on pu______es
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with ca_____ed checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled ch___s.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Exi_____ or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Oc________
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The tre______ vouches the agr_______ of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of br_____ ad_____ on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on pur______s with ca______ed checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Sec______ on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on h___ are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are ex_____ed by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by se____ management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior m___________
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to en____ that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are re______ed in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the n___ of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the com____.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Ri____ and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Ob_______
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management
to ensure that they are registered in the name of the company.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal au_____ makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The int_____ auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a l___ of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of se_______ in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in b___ safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank s___ deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe de_____ boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and co______s them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the sec_______ listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities li__ed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the re____s.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Com_________ and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cu_____
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The int_____ aud____ m___s a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a li__ of securities in bank safe deposit boxes
and com____s them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank s___ deposit b___s
and compares them with the securities listed in the re____s.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes
and compares them with the securities listed in the records.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The con_____ compares current market prices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller co_____s current market prices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares cur____ market prices with
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current mar___ prices with
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market p____s with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the l____d values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed va___s of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of se_____ies.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Va_______, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Al________ and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Ac_______
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The con______ compares current ma_____ prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares cu______ market prices with the l____ed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed v_____s of sec______.
Investing and Financing Cycle
Examples of controls that support the assertions with regard to investments include (PERCV):
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• P___________ and D__________
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• R______ and O_________
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• C___________ and C_____
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• V_______, A__________ and A________
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
As with the other cycles, the auditor is concerned with the relationship of the internal control procedures to the management assertions on the financial statements.
Examples of controls that support the assertions with regard to investments include (PERCV):
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities, based on management decisions as to the intent of holding them.
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
The investing and financing cycle deals with
___________ involving acquisition and disposal of assets other than inventory
and ____________ with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The _________ and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and _________ cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing _____ deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving ___________ and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and ________ of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of ______ other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than _________
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with _________ and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and ___________.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The __________ and __________ cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of _______ other than inventory
and transactions with _________ and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of ______ other than inventory
and transactions with creditors and _____________.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions _________ acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and ___________ with creditors and ____________.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle ______ ____
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
The investing and financing cycle deals with
transactions involving acquisition and disposal of assets other than inventory
and transactions with creditors and shareholders.
What transactions that investing and financing cycle deals with?
1) transactions involving __________ and _________ of _________ other than inventory
and 2) transactions with _________ and ___________ .
What transactions that investing and financing cycle deals with?
1) transactions involving acquisition and disposal of assets other than inventory
and 2) transactions with creditors and shareholders.
What transactions that investing and financing cycle deals with?
What transactions that investing and financing cycle deals with?
1) transactions involving acquisition and disposal of assets other than inventory
and 2) transactions with creditors and shareholders.
There are typically very ___ transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical ____ for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few ___________ in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in _________ and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and _________ cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are _________ very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a _______ year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in ________ and __________ cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a ______.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically ____ ___ transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
There are typically very few transactions in investing and financing cycle in a _______ ____ for a client.
There are typically very few transactions in investing and financing cycle in a typical year for a client.
Since there are typically very few transactions in investing and financing cycle in a typical year for a client,
Will an auditor often find it most efficient to ignore the internal control structure?
Since there are typically very few transactions in investing and financing cycle in a typical year for a client,
Will an auditor often find it most efficient to ignore the internal control structure?
Answer: Yes!
It most efficient to ignore the internal control structure and simply test the few transactions that took place.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
Will an auditor find it most efficient to ignore the internal control structure when there are very few transactions in investing and financing cycle?
Will an auditor find it most efficient to ignore the internal control structure when there are very few transactions in investing and financing cycle?
Answer: Yes!
It most efficient to ignore the internal control structure and simply test the few transactions that took place.
Since there are typically very few transactions in these areas in a typical year for a client, an auditor will often find it most efficient to ignore the internal control structure and simply test the few transactions that took place.
What an auditor will do when there are very few transactions in investing and financing cycle?
• ___ test the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
In this case, the auditor will:
• Not test the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not ____ the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the _________
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not ___________________
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess ________________________ (RMM) at the same level as inherent risk,
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk,
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• ______ risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the _____________ as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as ________________ (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
______ = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = ___
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
_____ = ____
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• _______ risk of material misstatement (RMM) at the _____________ as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess _______________________ (RMM) at the same level as _____________ (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not ____ the controls
• _______ risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the _______
• Assess ____ of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that ____________ (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the _________ level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = ___________
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = ___% or ___
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x \_\_\_%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
_________ that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the __________________,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
___ = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
___ = Maximum
___ = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
___ = __________
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that ___________ (CR) is at the _________ level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a _____ RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally _________ in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high ____ ; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
\_\_\_\_\_ = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = _____
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
______ = _____
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a __________; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = \_\_\_ x \_\_\_%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
\_\_\_\_\_ = IR x \_\_\_%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce _____________ (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (___) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by __________ extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• ______ detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = ___
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
___ = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive __________ tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing __________ substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive _____.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• __________________ (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive ___________________.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess _________________________ (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce _____________ (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not _______________
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that _________ (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = ___
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = _________
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = _____
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when there are very few transactions in investing and financing cycle?
• Not test the controls
• Assess risk of material misstatement (RMM) at the same level as inherent risk (IR),
RMM = IR
RMM = IR x CR
assuming that control risk (CR) is at the maximum level,
CR = Maximum
CR = 100% or 1.0
RMM = IR x 100%
generally resulting in a high RMM; and
RMM = High
• Reduce detection risk (DR) by performing extensive substantive tests.
DR = Low
DR = AR / (RMM)
DR = AR / (IR × CR)
Will an auditor find it more efficient to rely on the internal control structure when a large number of transactions have occurred?
Will an auditor find it more efficient to rely on the internal control structure when a large number of transactions have occurred?
Answer: Yes!
The auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
In those less frequent cases where a large number of transactions have occurred, the auditor may find it more efficient to rely on the internal control structure rather than test the numerous transactions that took place.
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the _______
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness;
- Reduce the risk of material misstatement based on the results of the tests of controls; and
- Accept higher detection risk by performing only limited substantive tests.
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• ____ the controls
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to _________ their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their ____________
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• _________________ to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine ____________________
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
• Test the controls to determine their effectiveness
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the ________________________ (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (____) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- ______ the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the _______ of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the ______ of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
\_\_\_\_ = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- _______ the risk of material misstatement (RMM) based on the _______ of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
\_\_\_\_\_\_ = \_\_\_\_\_\_\_
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- ________ the risk of material misstatement (RMM) based on the results of the ______________
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher _____________ (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (___) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by ____________ only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited ___________ tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive _____.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only _____ substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• ______ higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept ______ detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = \_\_\_\_\_\_\_
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept ____________________ (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only ___________________ tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing ____ limited substantive tests.
DR = Higher
DR = AR / (RMM)
DR = AR / (IR × CR)
What an auditor will do when a large number of transactions in investing and financing cycle have occurred?
- Test the controls to determine their effectiveness
- Reduce the risk of material misstatement (RMM) based on the results of the tests of controls
RMM = Lower
and
• Accept higher detection risk (DR) by performing only limited substantive tests.
DR = Higher
DR = AR / (RMM)
DR = AR / (IR × CR)
Investing and Financing Cycle
Very Few Transactions
• Not Test the Controls
• Risk of Material Misstatement = Inherent Risk
RMM = IR
RMM = IR x CR
Control Risk = Maximum Level
CR = Maximum
CR = 100% or 1.0
RMM = IR x CR
RMM = IR x 100%
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
DR = AR / (RMM)
Low DR = AR / (High RMM)
DR = AR / (IR × CR)
Investing and Financing Cycle
Very Few Transactions
• Not Test the Controls
• Risk of Material Misstatement = Inherent Risk
RMM = IR
RMM = IR x CR
Control Risk = Maximum Level
CR = Maximum
CR = 100% or 1.0
RMM = IR x CR
RMM = IR x 100%
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
DR = AR / (RMM)
Low DR = AR / (High RMM)
DR = AR / (IR × CR)
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = IR
CR = Maximum CR = 100% or 1.0 RMM = IR x CR RMM = IR x 100% RMM = High
• DR = Low
Low Detection Risk = More substantive tests
DR = AR / (RMM)
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = IR
CR = Maximum CR = 100% or 1.0 RMM = IR x CR RMM = IR x 100% RMM = High
• DR = Low
Low Detection Risk = More substantive tests
DR = AR / (RMM)
Low DR = AR / (High RMM)
Low Detection Risk = _____ substantive tests
Low Detection Risk = More substantive tests
Low Detection Risk = More _________________
Low Detection Risk = More substantive tests
___ Detection Risk = ____ substantive tests
Low Detection Risk = More substantive tests
Low __________ Risk = More substantive tests
Low Detection Risk = More substantive tests
Low ______________ = More substantive tests
Low Detection Risk = More substantive tests
Low Detection Risk = More ___________ tests
Low Detection Risk = More substantive tests
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Test or Not Test
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Test or Not Test ?
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = ___
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = IR
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = IR
CR = \_\_\_\_\_\_\_\_\_\_\_
Investing and Financing Cycle
Very Few Transactions
- Test of Controls = Not Test
- RMM = IR
CR = Maximum
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = ______
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = _____
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low _____________ = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More __________________
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
\_\_\_ DR = AR / ( \_\_\_\_ RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High ____)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = ___
CR = ____________
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = ____ Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = _____
• DR = ____
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low \_\_\_ = AR / (High \_\_\_\_)
Investing and Financing Cycle
Very Few Transactions
• Test of Controls = Not Test
• RMM = IR
CR = Maximum
RMM = High
• DR = Low
Low Detection Risk = More substantive tests
Low DR = AR / (High RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls to determine their effectiveness
- Reduce RMM based on the results of the tests of controls
RMM = Lower
• Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls to determine their effectiveness
- Reduce RMM based on the results of the tests of controls
RMM = Lower
• Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
• ____ the controls
Investing and Financing Cycle
Large number of Transactions
• Test the controls
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = ______
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- _______ Detection Risk = Limited substantive tests
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher _______________ = Limited substantive tests
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited _________________
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (______ RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower ____)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher ___ = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher ___ = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher ___ = AR / (Lower RMM)
Investing and Financing Cycle
Large number of Transactions
- Test the controls
- RMM = Lower
- Higher Detection Risk = Limited substantive tests
DR = Higher
Higher DR = AR / (Lower RMM)
Higher Detection Risk = Limited substantive _____
Higher Detection Risk = Limited substantive tests
Higher Detection Risk = Limited substantive tests
Higher Detection Risk = Limited substantive tests
Higher __________ Risk = Limited substantive tests
Higher Detection Risk = Limited substantive tests
Higher _______________ = Limited substantive tests
Higher Detection Risk = Limited substantive tests
Higher Detection Risk = ______ substantive tests
Higher Detection Risk = Limited substantive tests
Higher DR = AR / (Lower ____)
Higher DR = AR / (Lower RMM)
Higher ___ = AR / (Lower RMM)
Higher DR = AR / (Lower RMM)
______ DR = AR / (Lower RMM)
Higher DR = AR / (Lower RMM)
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the _____________ assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management ___________
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial ____________.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the _____________________
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the _________________.
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the _______________________________________
to the management assertions
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the relationship of the internal control procedures
to the _____________________
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
What is the auditor concerned with in the investing and financing cycle?
What is the auditor concerned with in the investing and financing cycle?
The auditor is concerned with
the relationship of the internal control procedures
to the management assertions
on the financial statements.
What are examples of controls that support the assertions with regard to investments?
(PERCV)
What are examples of controls that support the assertions with regard to investments?
(PERCV)
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- P__________ and D__________
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- ________________________
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- E_________ or O____________
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- _____________________
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- R____ and O__________
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- ___________________
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- C___________ and C_____
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- ________________________
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- V________, A_________ and A________
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- ______________________________
What are examples of controls that support the assertions with regard to investments?
(PERCV)
- Presentation and Disclosure
- Existence or Occurrence
- Rights and Obligations
- Completeness and Cutoff
- Valuation, Allocation and Accuracy
The paragraph below represent which assertion with regard to investments?
(PERCV)
“The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities,
based on management decisions as to the intent of holding them.”
• Presentation and Disclosure
– The controller determines that securities are classified in the records correctly as trading securities, available-for-sale securities, or held-to-maturity securities,
based on management decisions as to the intent of holding them.
The paragraph below represent which assertion with regard to investments?
(PERCV)
“The treasurer vouches the agreement of broker advices on purchases with cancelled checks.”
• Existence or Occurrence
– The treasurer vouches the agreement of broker advices on purchases with cancelled checks.
The paragraph below represent which assertion with regard to investments?
(PERCV)
“Securities on hand are examined by senior management to ensure that they are registered in the name of the company.”
• Rights and Obligations
– Securities on hand are examined by senior management to ensure that they are registered in the name of the company.
The paragraph below represent which assertion with regard to investments?
(PERCV)
“The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.”
• Completeness and Cutoff
– The internal auditor makes a list of securities in bank safe deposit boxes and compares them with the securities listed in the records.
The paragraph below represent which assertion with regard to investments?
(PERCV)
“The controller compares current market prices with the listed values of securities.”
• Valuation, Allocation and Accuracy
– The controller compares current market prices with the listed values of securities.
Investing and Financing Cycle
Applying the RACE mnemonic for account balances:
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
Investing and Financing Cycle
Applying the RACE mnemonic for account balances:
- Rights and obligations
- Allocation and Valuation
- Completeness
- Existence
