Substantive Procedures & audit Completion Flashcards
What does completeness assertion is?
Managements’ assertion that all transactions and events that should have been recorded are indeed recorded and all related disclosures that should have been included in the FS are included
The cutoff assertion relates to
the timing of transactions and events, ensuring that they are recorded in the appropriate accounting period
The valuation, allocation & accuracy assertions
Tracing goes from the source documents to the
FS
Vouching goes from the FS to the
source document
Vouching relevant assertion is
existence or occurrence
Vouching is to done to check for the risk of
overstatement
Tracing relevant assertion is
completeness
tracing is done to check for the rist of
understatement
Common types of Substantive Analytical Procedures includes
Trend Analysis
Ratio Analysis
Reasonable Testing
Regression Analysis
Vertical Analysis
Horizontal analysis
Non-Financial Analysis
Industry comparison
Budget vs actual analysis
During what stages of the audit, are analytical procedures require?
During the planning stage and the during the overall review
The primary risk for the revenue cycle is
overstatement
Best detection procedures against lapping?
Regular reconciliation
Segregation of duties
Analyzing aging of AR
Surprise Audits
The primary risk for the expenditure cycle is
understatement
The primary risk for the cash cycle is
overstatement
The primary risk for the inventory cycle is
overstatement
Income statement and SCF Assertions are
Occurence
Completeness
Accuracy
Cutoff
Classification
Presentation
