In many cases, the meaning of the assertions is fairly obvious and in preparation for their FAU or AA exam candidates are reminded of the importance to learn and be able to apply the use of assertions in the course of the audit. Particularly, candidates need to be able to identify and...
Audit assertions for fixed assets Existence and valuation assertions are usually the most relevant assertions in the audit of fixed assets. Hence, we usually pay more attention to the areas related to them. The company may intend to overstate the value of fixed assets rather than understate. For...
AuditEvidenceDecisions 1.Whichauditprocedurestouse2.Whatsamplesizetoselectforagivenprocedure3.Whichitemstoselectfromthepopulation4.Whentoperformtheprocedures 第二页，共三十六页。7-2 AuditProgram 第三页，共三十六页。7-3 PersuasivenessofEvidence Competence SufficiencyCombinedeffect Persuasivenessandcost 第四页，...
Their objective is confirming whether the financial statement assertions have been adhered to, and whether the financial statements are true and fair. Responses are not as detailed as audit procedures; instead they relate to the approach the auditor will adopt to confirm...
- Independent auditor (objective 3rd party) obtains & evaluates evidence (knowledge of business, observe physical assets, inquiry of managers, confirmations of 3rd parties, inspection of docs) and test assertions about economic actions and events (B/S, I/S, stmt of cash flows, footnotes) against...
Audit procedure Auditingprocedures: Five assertions: 1. Occurrence: Define: transactions and events that have been recorded have occurred and pertain to the entity. Explain: sales and purchases shown in the income statement belong to the company and are real‚ that is they actually took p...
Audit RequirementThe auditor is responsible for performing tests to document that the auditee’s assertions are being utilized. The Subrecipient will complete the Certification ofAudit Requirementannually within 45 days after its fiscal year end. ...
A systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users. ...
Ultimately, an auditor’s responsibility for gathering evidence relevant to management’s assertions regarding the fair presentation of the financial statements remains the same, but the nature of procedures performed and evidence gathered differ greatly from traditional audits. As auditors, we must appl...
Financial statement assertions and audit evidence 2. Audit procedures 3. Audit sampling and other means of testing 4. The audit of specific items 5. Computer-assisted audit techniques 6. The work of others 7 Not-for-profit organisations E. Review and reporting 1. Subsequent events 2. Going ...