Entries from the general journal are posting individually to the general ledger. The lower the tolerable misstatement, the larger the sample size This requires the person selecting the sample without influence or bias in the selection process, by using some sort of impartial selection information e.
Test of controls 6. Occurrence of unusual or complex transaction 6. As performance auditing can deal with all facets of the public sector, it would not be possible or appropriate to propose common auditing standards to cover all situations. Valuation and allocation Cash Receipts and Payments transactions Sight supporting documents Sight remittance advice e.
Use of Modifier25 Chapter Get better grades Thanks to the study guides written by fellow students specifically for your courses, you will never miss a trick when it comes to your exams.
Checks, approvals and reconciliations Tests for control of sales Test of controls of cash receipts Test of controls for purchases for inventory Potential Misstatements Occurrence: Quality control policies and client evaluation procedures; the audit firm needs to take precautions to avoid association with a client whose management lacks integrity, this include consideration of business reputation Communication with previous auditor: The authorities do no pay any attention to the citizens demands and protest.
This can become a bit less clear when we are dealing with long-term, fixed assets such as buildings, land, and equipment because there are usually more costs attached to putting Notes chapter 2 principles of auditing asset into productive service than just the initial purchase price of the asset.
Decentralization means evenly distribution of power at every level of management. Confidentiality Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
In class, we analogize the general ledger as a filing cabinet that represents the entire set of accounts for our business and we analogize each ledger account cash, accounts receivable, equipment, accounts payable, common stock, revenues, rent expense, etc.
Self interest threats 2. It gives further details regarding the audit objective, the selection of audit topics and the audit process.
If you understand these, you will be able to think through all of the transactions presented in your homework and on the test. The officers consider themselves as master and people as their slaves.
Observe mailing of monthly statements — review evidence of follow-up of correspondence with customers — Inspection indication of supervisory review and approval of summarisation and posting — Inspect approval write-offs of uncollectable amounts — Test data techniques to test specific programmed controls Cut-off: Governing body and members Components of Audit report Types of Auditors Opinions Circumstances of which give rise to Modified reports 2.
Revenue, Receivables and Receipts system Test of control of sales Usually concerned with gathering evidence concerning the effectiveness and continuity of controls associated with specific assertions or classes of transactions passing through an accounting system.
Also note the general ledger for the Review Problem on page These new changes have produced difficulties. We should be constantly experimenting to develop new techniques which make the work much simpler, easier and quicker.
For the next few chapters, we focus on the measurement and processing pieces of this definition, and focus our attention primarily on how we process accounting information system.
Observe or ascertain that written procedures followed by independent check carried out Classification: The students are getting late for schools. The Theory of Debits and Credits -- Debits and Credits become necessary because we use a two-sided bookkeeping system called the double-entry system of accounting.
Now the situation has become completely changed. Objectivity Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Design substantive tests to detect potential material misstatements Control risk is high; because the entities internal control policies are poor or do not support a less then high assessment, may be effective but audit tests to gather evidence are less effective or do not pertain to the particular assertion Chapter 9: No worker should be unduly favoured or punished.
Integrity of management 2. You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all. Avoid resits With the study guides and notes written by fellow students, you are guaranteed to be properly prepared for your exams.
Fredrick Winslow Taylor was a person who within a very short duration rose from ranks of an ordinary apprentice to chief engineer in Midvale Steel Company, U.
Market share, customer satisfaction, new product success rates, time to market for new products and warranty rates 1.View Notes - Notes on Chapter 2 in Auditing from SBU at Seton Hill University. Threesetsofauditingstandards AICPA(AuditingStandardsBoard)fornonpubliccompaniesinUS.
Notes on Chapter 2 in Auditing - AICPA(). Personal responsibilities of the auditor Auditor actions in. Chapter 7 Reading Notes: Internal Control: • Fraud is the act of deception in which a business including employees or management use to receive personal gain.
• Fraud occurs based on three aspects and they are based off the fraud triangle. PRINCIPLES OF AUDIT - Auditing Notes For South African Students (10th Edition) Auditing Notes For South African Students.
This is the edition, This book has been Auditing Notes - Chapter 2 AUDITED FINANCIAL STATEMENTSâ€”THE BASICS.
Jan 16, · This feature is not available right now. Please try again later. Role and Importance of Accounting Standards and Auditing ROLE AND IMPORTANCE OF ACCOUNTING STANDARDS AND AUDITING Introduction 2 Accounting Standards And Guidance Notes.
Chapter III Role and Importance of Accounting Stanbdards and Auditing chapter – 2 principles of management •Concept of Principles of Management: Principles of Management are the broad and general guidelines for managerial decision making.
They are different from principles of science as they deal with human behaviour.Download