Audit Evidence

test information utilize by the citeener to draw conclusions on the fair presentation of the financial statements. visit targets suggest the types of show to accumulate. II. Decisions on license accumulation A. Which scrutinize military operations to use. public intents vi TRAOs eighter BRAOs quadruplet PDAOs Accounting Cycles five dollar bill Management Assertions specialized Objectives At to the lowest degree Six TRAOs Eight BRAOs Four PDAOs canvas subroutines At to the lowest degree integrity and seeming more for each(prenominal) specific TRAO, BRAO, PDAOs inspect procedures frequently tail more than one audited accounted accounted account objective Select a sample of gross revenue invoices and trace to the transfer document agreeing diagnose and quantity. training enquire What is an audit procedure? B. What sample sizing to take on for a given procedure. C. Which items to select from the population. D. When to behave the procedures (timing). III. visit Program Preparation Question What is an audit program? IV. intensity of exhibit Which audit procedures A. Appropriateness 1. relevancy lesson contact from sales invoices in the Sales daybook to shipping documents. B. dependability 1. Independence of provider 2. Effectiveness of lymph nodes intimate control social organization (strong vs. weak) 3. Auditors direct noesis 4. Qualifications of provider 5. objectiveness What sample coat and which items C. Sufficient 1. likeliness of misstatements 2. Quality of inwrought control When to perform D. Timeliness former(a)wise factors E. Combined burden F. Cost 2 V. Type of shew Preparation dubiety Enter pick up oral communication that regulate each of the types of evidence listed.Type definition Grade 1. carnal examination 2. stay 3. Documentation immaterial Internal respectable Internal noisome 4. Analytical procedures well-kept Broad 5. Inquiries of the client 6. Recalculation 7. Reperformance 8. Observ ation In-class example Audit Procedure 1. attend keep documents for cash disbursements some(prenominal) old age forward and after year-end. 2. Examine the acquisitions and cash disbursements journals for the finishing a couple of(prenominal) days of the current plosive and first few days of the win period, looking for gigantic or queer transactions. 3.Trace from the oecumenical ledger tail balance and bread and butter documentation to dress whether accounts due, relate parties, and other related assets and liabilities be properly include on the financial statements. 4. For liabilities that ar account payable in a foreign currency, visualize the exchange charge per unit and check calculations. 5. handle with the bookkeeper whether any amounts include on the accounts payable list are due to related parties, debit balances, or notes payable. 6. draw vendors statements from the controller and reconcile to the inclination of accounts payable. 7.Obtain vendors sta tements flat from vendors and reconcile to the leaning of account payable. 8. Obtain a list of accounts payable. Re-add and compare with the world-wide ledger. Type of secern BRAOs 3 Example of writing/creating audit procedures Situation The pursuance depicts the document head for the hills for sales for a typical company. node/ Sales mark Bill of dispatch Sales history Sales ledger General playscript Financial Statements General Objective TRAO occurrence Specific Objective Audit Procedures TRAO Completeness look on Table 7-6 (p. 187) for technical buzz words to use when constructing an audit procedure.