Overall Audit Plan and Audit Program

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Overall Audit Planand Audit Program

• Chapter 13

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Types of Audit Tests
Procedures to obtain an understanding of internal
control (Ch 10) Focused on understanding the
design and operation of aspects of I/C
necessary to plan the rest of the audit
Tests of control (Ch 10) Procedures used to
obtain evidence needed to assess control risk.
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Types of Audit Tests
Substantive tests of transactions Procedures
designed to test for dollar misstatements of
financial statement balances.

• Analytical procedures (Ch 8)
• To indicate possible misstatements
• To reduce tests of details of balances

Tests of details of balances Focus on ending G/L
balances
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Types of Audit Tests and the Audit Risk Model
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Types of Audit Tests andthe Audit Risk Model
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Relationship Between Types of Tests and Evidence
(Table 13-2)
Reperformance
Analytical proc.
Inquiries of the client
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Audit Assurance at Different Levels of Internal
Control Effectiveness (Figure 13-3)
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Impact of Information Technology onAudit Testing
SAS 80 (AU 326) and SAS 94 (AU 319) provide
guidance for auditors of entities that transmit,
process, maintain, or access significant
information electronically.
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Impact of Information Technology on Audit Testing
Computer assisted audit techniques (CAATS) may be
used to test automated controls or data.
Reports produced by IT may be used to test the
effectiveness of IT general controls.
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Variations in Evidence Mix
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Designing the Audit Program
Auditing standards require auditors to use a
Written audit program.

• It is convenient to think of the audit program as
  
• consisting of the three major classes of tests
• Tests of controls
• Substantive tests of transactions
• Analytical procedures

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Remainder of Chapter to be Covered Next Monday