tailieunhanh - Lecture Auditing and assurance services in Australia: Chapter 5 - Gay, Simnett

Chapter 5 - Overview of elements of the financial repport audit process. This chapter presents the following content: Accounting and auditing contrasted, areas of audit interest, audit evidence, audit procedures, the audit trail, selecting audit procedures,. | PART TWO: Planning and Risk CHAPTER 5 OVERVIEW OF ELEMENTS OF THE FINANCIAL REPPORT AUDIT PROCESS ACCOUNTING AND AUDITING CONTRASTED Fig. Relationship between accounting and auditing () AREAS OF AUDIT INTEREST Accountable activity of the entity Collection of original accounting data Allocation and reclassification of accounting data Presentation of results Organisation of the entity External relationships Internal organisational structure FINANCIAL REPORT ASSERTIONS Existence Occurrence Completeness Rights and obligations Valuation Measurement Presentation and disclosure ASSERTIONS AND OBJECTIVES FOR INVENTORY Example Assertions and objectives for the account balance of inventory of a manufacturing company (p. 183) Financial report Illustrative audit objectives assertion Existence n Inventories included in statement of financial position physically exist. n Inventories represent items held for sale in normal course of business. Completeness n Inventory includes all products, materials and supplies owned by the company that are on hand, in transit or stored at outside locations. Rights and n The company has legal title of ownership to the inventories. obligations Valuation n Inventories are properly stated at cost (except when net realisable value is lower). n Slow-moving, defective and obsolete items included in inventories are properly identified and valued. Measurement n Inventory is recorded at the correct amount in the correct period. Presentation and n Inventories are properly classified as current assets with major disclosure categories and their bases of valuation adequately disclosed. Note: Assertion of Occurrence relates to transactions related to inventory, not the balance AUDIT EVIDENCE Fig. The audit equation (p. 184) EXAMPLE OF A CASH PURCHASE TRANSACTION Fig. A cash purchase transaction () AUDIT PROCEDURES Inspection Observation Inquiry Confirmation Computation Analytical procedures . | PART TWO: Planning and Risk CHAPTER 5 OVERVIEW OF ELEMENTS OF THE FINANCIAL REPPORT AUDIT PROCESS ACCOUNTING AND AUDITING CONTRASTED Fig. Relationship between accounting and auditing () AREAS OF AUDIT INTEREST Accountable activity of the entity Collection of original accounting data Allocation and reclassification of accounting data Presentation of results Organisation of the entity External relationships Internal organisational structure FINANCIAL REPORT ASSERTIONS Existence Occurrence Completeness Rights and obligations Valuation Measurement Presentation and disclosure ASSERTIONS AND OBJECTIVES FOR INVENTORY Example Assertions and objectives for the account balance of inventory of a manufacturing company (p. 183) Financial report Illustrative audit objectives assertion Existence n Inventories included in statement of financial position physically exist. n Inventories represent items held for sale in normal course of business. Completeness n .

• Kế toán - Kiểm toán
• Assurance services profession
• Assurance services
• Auditing services
• Audit process
• Financial repport audit process
• Financial report assertions
• Structure of the profession
• Audit firms
• Assurance framework
• Accounting information
• Professional status
• Regulation of auditing
• The auditing profession
• Corporate governance
• Professional ethics
• Legal liability
• Liability to clients
• The business
• Strategic business risk
• Inherent risk assessment
• Inherent risk
• Internal control structure
• Assessing control risk
• Tests of controls
• Sales cycle
• Substantive tests
• Substantive tests of transactions
• Audit sampling
• Sampling theory
• Adjusting events
• Financial report
• Auditor’s reporting obligations
• Professional reporting obligations
• Prospective financial information
• Highlight information
• Institute of internal auditors
• Government accounting
• Reporting duties
• E commerce systems
• Business risk assessments