Title: Audit Tests
1(No Transcript)
2GOOD MORNING/AFTERNOON
3(No Transcript)
4AUDIT TEST DECISIONS
- Audit Procedures
- Sample Size
- Items to Select from the Population
- Appropriate Time to Perform the Procedures
5OVERVIEW OF AUDIT APPROACH
Financial Statements
Audit Cycles
Accounts/Transactions
Management Assertions
Audit Objectives
Audit Tests
Audit Program
6AUDIT CYCLES
- Sales and Collection (Revenue)
- Acquisition and Payment (Expenditure)
- Payroll and Personnel (Expenditure)
- Inventory and Warehousing (Conversion)
- Capital Acquisition and Repayment (Treasury)
- Financial Reporting
7ACQUISITION AND PAYMENT CYCLE
Beginning Accounts Payable
Acquisition Of Goods And Services
-
Cash Disbursements
Ending Accounts Payable
8ACCOUNTING INFORMATION SYSTEM
Customer Order Sales Invoice Shipping Documents
Sales Journal
Customer Check Remittance Advice Deposit Slip
Statement of Financial Position
Cash Receipts Journal
Purchase Requisition Purchase Order Receiving
Report Vendor Invoice Voucher Cover
Purchase Journal/ Voucher Register
General Ledger/ Subsidiary Ledgers
Statement of Income
Check Remittance Advice
Cash Disbursements Journal
Statement of Cash Flows
Time Cards Job Tickets Authorization
Forms Payroll Checks
Payroll Journal
General Journal
Debit/Credit Memos Other Support
9TYPES OF AUDIT PROCEDURES
- Procedures to Obtain an Understanding (Not Audit
Test) - Tests of Controls
- Substantive Tests of Transactions
- Tests of Details of Balances
- Analytical Procedures
10SALES AND COLLECTION CYCLE
Beginning Accounts Receivable
Sales
-
Cash Receipts
Ending Accounts Receivable
11CAPITAL ACQUISITION AND REPAYMENT CYCLE
Beginning Common Stock
Issuance Of Common Stock
-
Retirement Of Common Stock
Ending Common Stock
12TYPES OF AUDIT TECHNIQUES (EVIDENCE)
- Physical Examination
- Confirmation
- Documentation (Internal/external)
- Reperformance
- Observation
- Inquiries
- Analytical Procedures
13FACTORS AFFECTING COMPETENCE OF EVIDENCE
- Independence of Provider
- Effectiveness of Internal Control
- Auditor's Direct Knowledge
- Qualifications of Provider
- Objectivity
14MANAGEMENT ASSERTIONS
- Existence
- Timing/Cutoff
- Completeness
- Timing/Cutoff
- Valuation Or Allocation
- Detail Tie-in
- Posting and Summarization
- Accuracy
- Realizable Value
- Rights and Obligations
- Presentation and Disclosure
- Classification
- Disclosure