Module 17 Flashcards
What are the balance assertions?
Existence Completeness Accuracy, valuation and allocation classification rights and obligations presentation
What are the transaction assertions?
Occurence Completeness Accuracy Cut-off Classification Presentation
What is appropriateness?
measure of the quality of audit evidence
What is relevance?
evidence will satisfy at least one assertion
What is reliability impacted by?
source and nature
What are the three sources of audit evidence?
- auditor generated
- client gen
- third party gen
What are the categories of nature?
- natural evidence
- created
- rational
- testimonial
How is the sufficiency of audit evidence judged?
based on
- materiality
- ROMM
- sources and quality of evidence
How does auditor select items for testing?
- entire population
- judgement
- audit sampling
What are the sampling selection methods?
- Random
- Monetary unit sampling
- haphazard (non-statistical )
What are the evidence collecting techniques?
ICARE inspection conformation analytical procedures recalculation enquiry
What are substantive analytical procedures?
testing the total population
What are tests of details?
selecting specific items within the population for testing
Where are substantive procedures documented?
audit work programme (produced after ROMM is established)
What should a work programme include?
client name year end date title description assertions initials of staff member completing procedure date was completed work paper eefercne
