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Give 3 assertions about classes of transactions and events
Occurrence, completeness, accuracy, cut-off, classification
Audit objectives that relate to the determination of the validity of assertions on account balances or class of transactions or disclosures found in the financial statements
Substantive audit objectives
Procedures that include inquiry of management and other personnel, preliminary analytical procedures, observation, and inspection
Risk assessment procedures
Explain the usual steps in applying substantive analytical procedures
As discussed
Under directional testing, these tests are designed to discover omissions.
Tracing
Nature of an audit procedure refers to
Purpose and type of audit procedures
Interim procedures are less effective when
the risk of material misstatements is high/er
What are the 2 types of sampling risks?
Alpha and beta
Sample size has _________ relationship with sampling risk.
inverse
Attribute sampling: test of controls; ______________: substantive tests
Variable sampling
Confirmations are done during
substantive tests only
Inquiry can be performed during
RAP, TOC, and/or ST
Auditor’s responsibility as to the audit of accounting estimates is to obtain evidence as to whether
The estimate is properly accounted for and disclosed and the estimate is reasonable
Evidence with the lowest reliability on an FS audit perspective are
client representations
Final analytical procedures are _________ for every FS audit engagement.
required
Scope limitations may lead to which types of audit opinion?
Qualified or disclaimer
