tailieunhanh - Ebook Auditing and assurance services (14th edition): Part 2

(BQ) Part 2 book "Auditing and assurance services" has contents: Overall audit plan and audit program; audit of the sales and collection cycle - tests of controls and substantive tests of transactions; completing the tests in the sales and collection cycle - accounts receivable. | Find more at CHAPTER OVERALL AUDIT PLAN AND AUDIT PROGRAM How Much And What Kind Of Testing Will Get The Job Done? 13 LEAR N I N G O B J ECTIVES After studying this chapter, you should be able to 13-1 Use the five types of audit tests to determine whether financial Terry Holland and Al Baker have known each other for years. Terry is a partner statements are fairly stated. in the Southern California office of a national accounting firm. Al is an auditing 13-2 Select the appropriate types of professor at a nearby university. They get together once a month faithfully for audit tests. lunch, and the conversation always gets around to auditing theory versus 13-3 Understand how information practice. Following is their most recent conversation: technology affects audit testing. PROFESSOR AL: Now that PCAOB standards require the audit of a public 13-4 Understand the concept of company’s financial statements and internal control over financial reporting to evidence mix and how it be integrated, I’m afraid that auditors over rely on tests of controls and perform should be varied in different virtually no testing of details of balances. Given significant time pressures circumstances. required to complete the testing of controls to comply with PCAOB require13-5 Design an audit program. ments, firms may take the low-cost approach and reduce substantive testing 13-6 Compare and contrast instead of being concerned enough about audit quality, especially in the transaction-related audit audit of the financial statements. objectives with balance-related and presentation and disclosurePARTNER TERRY: Auditors must understand internal control in every audit, related audit objectives. regardless if the client is publicly traded or not. For all public companies and for nonpublic companies where control risk is assessed below maximum, 13-7 Integrate the four phases of the audit process. the auditor will be performing tests of controls. But, don’t forget that .