Audit Documentation Flashcards
What is the quantity and the content of the documentation affected by?
Nature of engagement, nature of report, nature of financial statements, schedules and other information of which the auditor is reporting, the nature and condition of client records, the assessed level of control risk and the needs in particular circumstances for supervision and review of the work
Interest income with notes/interest receivable
Interest expense with notes/interest payable
True
Permanent file
contains information for more than one audit period
debt agreements, articles of incorporation, the corporate charter etc.
analysis of c/s, owner equity accounts, description of client industry, history of client, description of client facility, Abstracts, legal documents, contracts, flow chart of i/s, anything in the i/s because they dont change, document for internal control transaction cycles, historical financial info (ratio analysis)
The work performed by the staff is recorded in the audit documentation. The supervisor would review the audit documentation to ensure that evidence adequately supports the judgments reached. And ensure they GAAS was followed.
True
Working trial balance
Similar to worksheet
Has reclassifications and adjustments
Working trial balance
- it begins with the clients balances
- there is a column for adjustments and reclassifications
- ends up with audited balances for the financial statements
Audit program must prepare details of audit procedures necessary to achieve objectives of the adit.
True
Audit Documentation
the work performed by the staff which is reviewed by the supervisor to ensure that GAAS is followed and evidence is collected appropriately
What is the disadvantage of microcomputers?
-may not contain readily observable details of calculations because the formulas will be hidden in the cells
Notes receivable and interest income are related to each other and thus would be on the same audit documentation
true
