Sample final AWS
ACCT3101 AUDITING AND PUBLIC PRACTICE 1 FINAL LECTURE SUMMARY
ACCT3101 Final Lecture Summary:
Table of Contents ACCT3101 Final Lecture Summary: .............................................................................. 1 Lecture Five – Audit Planning: ...................................................................................... 1 Lecture Six – Assessing Materiality and Risk: .......................................................... 6 Lecture Seven – Internal Controls and Fraud: ....................................................... 10 Lecture Eight – Audit Testing and Substantive Procedures: ............................ 17 Lecture Nine – Audit Testing and Substantive Procedures: Sampling: ......... 21 Lecture Ten – Completing the Audit: ........................................................................ 25 Lecture Eleven – Auditor’s Liability: ......................................................................... 30
Lecture Five – Audit Planning: Overview: • First four stages of audit planning: o Accept the engagement and perform initial planning o Obtain an understanding of the client’s business and industry o Assess client’s business risk (i.e. not meeting legal requirements/failure to meet objectives) o Perform preliminary analytical procedures • Audit Documentation (Working Papers) • Auditors should plan the audit so that it will be performed in an effective manner (i.e. issuing the correct audit opinion, considering costs vs. benefits) ASA300 • Reasons for planning an audit properly include: o To gain a clear understanding of the client to enable the auditor to obtain sufficient appropriate evidence o To ensure a cost-effective audit o To avoid misunderstandings with the client (established in the engagement letter)
ACCT3101 Final Lecture Summary:
Table of Contents ACCT3101 Final Lecture Summary: .............................................................................. 1 Lecture Five – Audit Planning: ...................................................................................... 1 Lecture Six – Assessing Materiality and Risk: .......................................................... 6 Lecture Seven – Internal Controls and Fraud: ....................................................... 10 Lecture Eight – Audit Testing and Substantive Procedures: ............................ 17 Lecture Nine – Audit Testing and Substantive Procedures: Sampling: ......... 21 Lecture Ten – Completing the Audit: ........................................................................ 25 Lecture Eleven – Auditor’s Liability: ......................................................................... 30
Lecture Five – Audit Planning: Overview: • First four stages of audit planning: o Accept the engagement and perform initial planning o Obtain an understanding of the client’s business and industry o Assess client’s business risk (i.e. not meeting legal requirements/failure to meet objectives) o Perform preliminary analytical procedures • Audit Documentation (Working Papers) • Auditors should plan the audit so that it will be performed in an effective manner (i.e. issuing the correct audit opinion, considering costs vs. benefits) ASA300 • Reasons for planning an audit properly include: o To gain a clear understanding of the client to enable the auditor to obtain sufficient appropriate evidence o To ensure a cost-effective audit o To avoid misunderstandings with the client (established in the engagement letter)
