AUD1

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Author:
ibjackielee
ID:
108839
Filename:
AUD1
Updated:
2011-10-13 23:52:08
Tags:
TIPPICANOE
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Description:
Audit part I
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  1. Audit Steps
    • 1. Plan the Audit
    • 2. Understand Entity & IC
    • 3. Assess Risk
    • 4. Perform Tests of Controls & Substantive Tests
    • 5. Complete the Audit
    • 6. Issue the Report
  2. TIPPICANOE
    • Training & Proficiency
    • Independence
    • (Due) Professional Care (critical review/skill/ skepticism)
    • Planning & Supervision
    • Internal Control understanding
    • Corroborative- sufficient appropriate audit evidence
    • Accordance w/ GAAP
    • No new principals or
    • Omitted disclosures none
    • Express an opinion
  3. Accepting the Engagement
    2 Considerations
    RID-C
    • Auditability of the FS
    • Management integrity

    • Reasons for the change
    • Integrity of Management
    • Disagreements
    • Communications about fraud, illegal acts & IC
  4. Reqd Communications with those charged with governance
    • Disagreements during the audit
    • Illegal acts (all), Fraud involving mgmt, and material fraud
    • Significant acctng principle changes
    • Aje's & Rje's
    • Prior discussions with mgmt (prior to engagement)
    • Problems with obtaining evidence & ee cooperation
    • Responsibilities (reasonable assurance)
    • Other responsibilities
    • Views of other accountants contacted
    • Estimates used & methods
  5. Written communication to gain an understanding
    ie: Engagement Letter - RECOMMENDED

    1 of 2
    1. Objective to express opinion on FS

    • 2. Mgmt Responsibilities
    • - maintain IC
    • - compliance w/ laws & regs
    • - make evidence available
    • - adjust for material errors
    • - agree there are no aggregate material errors
  6. Written communication to gain an understanding
    ie: Engagement Letter - RECOMMENDED

    2 of 2
    • 3. Auditor responsibilities
    • - conduct in accordance w/ GAAS
    • - communicate SDMW to audit committe

    • 4. Limitations
    • - may choose not to express an opinion
    • - material misstatement may go undetected
    • - reasonable assurance (not absolute)
  7. Steps in Planning
    BRAINSTOPS
    • Basic discussions / engagement letter
    • Review Saly & predecessor work
    • Ask about recent developments
    • Interim FS review & ANALYTICAL REQD
    • Non audit personnel discussions (ie: tax prep)
    • Staffing, time budget, AUDIT PLAN
    • Timing of procedures
    • Outside consultants considered
    • Prounouncements reviewed
    • Scheduling w/ client
  8. Quality Control Standards (SQCS)

    HEAL-ME
    • Human Resources
    • Ethical Reqmts
    • Acceptance/continuing clients
    • Leadership responsibilities
    • Monitoring
    • Engagement Performance
  9. Elements of internal control
    CRIME
    • Control Environment
    • Risk Assessment
    • Control Activities
    • Information System
    • Monitoring
  10. Control Environment Elements
    CHOPPER
    • Commitment to competence
    • Human Resournces
    • Organizational structure
    • Participation by those charged w/ governance
    • Philosophy of Mgmt
    • Ethical values
    • Responsibility assignment
  11. Control Activities
    PIPS-ARCC
    • Performance Eval (PY vs CY, budget vs actual)
    • Info processing
    • Physical security of assets
    • Segregation of Duties

    • Authorization
    • Recording
    • Custody
    • Comparison
  12. Understanding Internal Control

    Vs. Testing Internal Control
    Understanding: Prev audits, inquiry, inspection, observation

    Testing: RIIO- Reperformance, inquiry, inspection, observation

    Implementation IS NOT operating effectiveness. Implementation = observation, inquiry, inspection, maybe tracing.
  13. How to document IC

    FIND
    • Flow charts
    • ICQ
    • Narrative
    • Decision Tree
  14. IC limitations

    COCO
    • Collusion
    • Mgmt Override
    • Competency
    • Obsolescence
  15. Financial Statement Assertions

    U-PERCV
    • Understanding & Classification
    • Presentation & Disclosure
    • Existence & Occurence
    • Rights & Obligations
    • Completeness & Cutoff
    • Valuation, Allocation, Accuracy

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