CHAPTER 1 AUDITING AND THE PUBLIC ACCOUNTING PROFESSION – INTEGRITY OF FINANCIAL REPORTING |LEARNING CHECK | 1. SEVERAL COMMON ATTRIBUTES OF ACTIVITIES DEFINED AS AUDITING ARE (A) SYSTEMATIC PROCESS, (B) OBJECTIVELY OBTAINING AND EVALUATING EVIDENCE, (C) ASSERTIONS ABOUT ECONOMIC ACTIONS AND EVENTS, (D) DEGREE OF CORRESPONDENCE, (E) ESTABLISHED CRITERIA, (F) COMMUNICATING THE RESULTS, AND (G) INTERESTED USERS. 2. A financial statement audit involves obtaining
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Auditing Standards and Practices Council Philippine Auditing Practice Statement 1009 COMPUTER-ASSISTED AUDIT TECHNIQUES PAPS 1009 PHILIPPINE AUDITING PRACTICE STATEMENT 1009 COMPUTER-ASSISTED AUDIT TECHNIQUES CONTENTS Paragraphs Introduction Description of Computer Assisted Audit Techniques (CAATs) Considerations in the Use of CAATs Using CAATs Using CAATs in Small Entity IT Environments Effective Date Acknowledgment 1-3 4-6 7-16 17-25 26 27 28-29 The Auditing Standards and Practices Council
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lowering the preliminary levels of materiality. b. Design special substantive tests to compensate for the lack of industry expertise. c. Engage financial experts familiar with the nature of the industry. d. Obtain a knowledge of matters that relate to the nature of the entity's business. 3. Which of the following factors most likely would cause an auditor not to accept a new audit engagement? a. An inadequate understanding of the entity's
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financial reporting, and one on the effectiveness of a company’s internal controls. 2) The second reason for evaluating a company’s internal control is to assess control risk to give the auditors a basis for planning the audit and determining the nature, timing, and extent of audit procedures for the account balance (substantive) audit program. B. For secondary reason for evaluating internal control is to provide information useful to the management and directors for carrying out the
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least yet still bear impact is the business law and taxation. The collegiate validation exam used as indicator of readiness showed statistical association with the actual exam. A simulated model revealed that the scores of management and services, auditing problems, audit theory, business law and taxation and accounting problems 1 have strong board outcome effects. The theory of accounts and accounting problems 2 showed no statistical significance. Keywords: Accounting education, intervention measures
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as performing consulting services for company management. In addition, the members must be financially literate; at least one member must be a financial expert. 6–3 An engagement letter is sent to the client by the auditors to make clear the nature of the engagement, any limitations on the scope of the audit, work to be performed by the client’s staff, and the basis for computing the auditors’ fee. The engagement letter represents the written contract for the engagement, and its primary objective
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as performing consulting services for company management. In addition, the members must be financially literate; at least one member must be a financial expert. 6–3 An engagement letter is sent to the client by the auditors to make clear the nature of the engagement, any limitations on the scope of the audit, work to be performed by the client’s staff, and the basis for computing the auditors’ fee. The engagement letter represents the written contract for the engagement, and its primary objective
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CHAPTER 6 INTERNAL CONTROL IN A FINANCIAL STATEMENT AUDIT Answers to Review Questions 6-1 From management's perspective, the internal control provides a way to meet its stewardship or agency responsibilities. Management also needs a control system that generates reliable information for decision-making purposes. The importance of internal control to the auditor is rooted in the second standard of fieldwork. The controls that are relevant to the entity's ability to initiate, record
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substantive test of transactions, and analytical procedures for the audit of Apollo Shoes Inc.’s sales and collection cycle, payroll and personnel cycle, acquisition and payment cycle, and Inventory and Warehousing cycle in line with the generally accepted auditing principles. The objective is to verify existence, accuracy and completeness. A substantive test should be associated with each of the transactions related to the audit objectives. The objectives of the audit include the occurrence, accuracy
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ended, and a summary of significant accounting policies and other explanatory information. Objective, scope and limitations Our statutory function as auditor of Bank of America is to report to the shareholders by expressing an opinion on Bank of America annual financial statements. We will conduct the audit in accordance with Canadian generally accepted auditing standards and will issue an audit report. Those standards require that we comply with ethical requirements and plan and perform the audit
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