Week 2 - Understanding the Client's Systems and Processes Flashcards
1
Q
Accounting systems
A
Manual and electronic
2
Q
IT (non-financial) systems
A
And how they link e.g logistics, contract, project management and HR
3
Q
Financial reporting systems
A
Including all management accounting systems e.g budgeting, costing, pricing
4
Q
Reporting hierarchy
A
Departments, people and systems
5
Q
Internal control systems and procedures
A
e.g the control environment
6
Q
Financial management systems
A
Analytical review, such as trend and variance analysis, exception reporting, ratio analysis
7
Q
What is the use of analytical review in planning?
A
To better help us understand the entity and to identify potential areas for attention as part of our audit procedures
