Module H And D Class Notes Flashcards
How do you document the planning process?
Work time budget
Where is audit work documented?
In work papers
How do you supervise work?
Review work papers
PBC
Prepared by client
Input error
Entered data incorrectly
Systematic error example
Sold 1000 airline tickets for $40
Approved vendor list
Can only purchase from vendors on list
because you can get better deals
In manual environment you will have…
In technological environment you need to find…
Audit trail
2) cyber trail
What should you write on invoice to make sure you aren’t billed twice?
“Paid” and date
3 ways to document internal controls
1 internal controls questionnaire
2 narrative
3 flowchart
Narrative
Take notes during inquiry
Control risk
Risk controls will fail to detect material misstatement
When do you want to test controls?
Throughout the year
Loan loss provision
Analogous to allowance for doubtful accounts
Batch processing example vs. Realtime processing example
B: paid every 2 weeks
R: paid as occurred
