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

In this chapter, students will be able to understand: Accounting and auditing contrasted, areas of audit interest, audit evidence, audit procedures, the audit trail, selecting audit procedures. | Part Two Planning and Risk 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Chapter 5 Overview of Elements of the Financial Report Audit Process 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Accounting and Auditing Contrasted Learning Objective 1: 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Areas of audit interest Accountable activity of the entity Collection of original accounting data; Allocations and reclassifications of the associated data; and Presentation of results in financial report. Organisation of the entity External relationships Internal organisational structure. 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Financial Report Assertions and Audit Objectives Directors and managers make assertions when they present a financial report. Auditors use these assertions to assess risks by considering different types of potential misstatements that may occur and designing audit procedures in response to risks. There are three categories of assertions: Classes of transactions and events; Account balances; and Presentation and disclosure. Learning Objective 2: 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Financial Report Assertions and Audit Objectives (cont.) Assertions about classes of transactions and events for the period under audit: (a) Occurrence – transactions and events that | Part Two Planning and Risk 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Chapter 5 Overview of Elements of the Financial Report Audit Process 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Accounting and Auditing Contrasted Learning Objective 1: 5- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Areas of audit interest Accountable activity of the entity Collection of original accounting data; Allocations and reclassifications of the associated data; and Presentation of results in financial report. Organisation of the entity External relationships Internal organisational structure.