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
Under directional testing, these tests are designed to discover omissions.
Tracing
Material but not pervasive misstatements will lead to which type of audit opinion?
Qualified
Scope limitations may lead to which types of audit opinion?
Qualified or disclaimer
Sample size has _________ relationship with sampling risk.
inverse
Interim procedures are less effective when
the risk of material misstatements is high/er
Those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statements for the current period
Key audit matters
Procedures that include inquiry of management and other personnel, preliminary analytical procedures, observation, and inspection
Risk assessment procedures
Attribute sampling: test of controls; ______________: substantive tests
Variable sampling
What are the 2 types of sampling risks?
Alpha and beta
Final analytical procedures are _________ for every FS audit engagement.
required
Evidence with the lowest reliability on an FS audit perspective are
client representations
Confirmations are done during
substantive tests only
A paragraph included in the report to communicate a matter that is not presented or disclosed in the financial statements but, in the auditor’s judgment, is relevant to the users’ understanding of the audit
Other matter
Explain the usual steps in applying substantive analytical procedures
As discussed
Nature of an audit procedure refers to
Purpose and type of audit procedures
Included in the report to draw the reader’s attention to a matter presented or disclosed in the financial statements
Emphasis of matter
Give 3 assertions about classes of transactions and events