- What are audit control procedures?
- What are the different types of audit evidence?
- What are some common types of CAATs?
- What are the 14 steps of auditing?
- What are the two types of substantive procedures?
- What is audit evidence and examples?
- What is the most reliable audit evidence?
- What is the purpose of audit procedures?
- What is the audit process step by step?
- What are the five steps involved in analytical procedure?
- What are 3 types of audits?
- What are the four different types of analytical methods?
- Which of the following is a type of analytical procedure?
- What are the 5 internal controls?
- What are the five major types of analytical procedures in auditing?
- What are the 8 types of audit evidence?
- What are some examples of analytical procedures?
- What is the purpose of analytical procedures in an audit?
- What are the 4 phases of an audit process?
- What is the strongest form of audit evidence?
- What are the 7 internal control procedures?
What are audit control procedures?
A test of controls is an audit procedure to test the effectiveness of a control used by a client entity to prevent or detect material misstatements.
Depending on the results of this test, auditors may choose to rely upon a client’s system of controls as part of their auditing activities..
What are the different types of audit evidence?
Types of audit evidence:Financial statements.Accounting information.Bank accounts.Management Accounts.Fixed Assets Register.Payrolls Listing.Banks Statements.Bank confirmation.More items…
What are some common types of CAATs?
Some common types of CAATs are generalized audit software (GAS), utility software, test data, application software and mapping, audit expert systems, and continuous auditing.
What are the 14 steps of auditing?
The 14 Steps of Performing an AuditReceive vague audit assignment.Gather information about audit subject.Determine audit criteria.Break the universe into pieces.Identify inherent risks.Refine audit objective and sub-objectives.Identify controls and assess control risk.Choose methodologies.More items…•
What are the two types of substantive procedures?
There are two categories of substantive procedures – analytical procedures and tests of detail.
What is audit evidence and examples?
Auditing evidence is the information collected by an auditor to ascertain the accuracy and compliance of a company’s financial statements. … Examples of auditing evidence include bank accounts, management accounts, payrolls, bank statements, invoices, and receipts.
What is the most reliable audit evidence?
Audit evidence obtained directly by the auditor (for example, observation of the application of a control) is more reliable than audit evidence obtained indirectly or by inference (for example, inquiry about the application of a control).
What is the purpose of audit procedures?
The purpose of an audit is to provide an independent opinion about the accuracy and fairness of a company’s financial statements, processes and procedures. It confirms that records are prepared in accordance with proper accounting procedures, such as generally accepted accounting principles, and reports any exceptions.
What is the audit process step by step?
The Audit ProcessStep 1: Define Audit Objectives. Prior to the audit, AMAS conducts a preliminary planning and information gathering phase. … Step 2: Audit Announcement. … Step 3: Audit Entrance Meeting. … Step 4: Fieldwork. … Step 5: Reviewing and Communicating Results. … Step 6: Audit Exit Meeting. … Step 7: Audit Report.
What are the five steps involved in analytical procedure?
Use of substantive analytical proceduresSTEP 1: Develop an independent expectation. … STEP 2: Define a significant difference (or threshold) … STEP 3: Compute difference. … STEP 4: Investigate significant differences and draw conclusions.
What are 3 types of audits?
There are three main types of audits: external audits, internal audits, and Internal Revenue Service (IRS) audits. External audits are commonly performed by Certified Public Accounting (CPA) firms and result in an auditor’s opinion which is included in the audit report.
What are the four different types of analytical methods?
Depending on the stage of the workflow and the requirement of data analysis, there are four main kinds of analytics – descriptive, diagnostic, predictive and prescriptive.
Which of the following is a type of analytical procedure?
Three types of analytical procedures commonly used by auditors are trend analysis, ratio analysis and reasonableness testing. a significant difference or threshold The auditor needs to determine a threshold that can be accepted without further investigation.
What are the 5 internal controls?
The five components of the internal control framework are control environment, risk assessment, control activities, information and communication, and monitoring. Management and employees must show integrity.
What are the five major types of analytical procedures in auditing?
To obtain audit evidence, the auditor performs one – or a combination – of the following procedures:inspection.observation.external confirmation.inquiry.reperformance.recalculation.analytical procedures.
What are the 8 types of audit evidence?
Terms in this set (8)physical examination. inspection or count or tangible assets. … confirmation. receipt of written or oral repsonse from independent 3rd party, verifying accuracy of info requested by auditor. … inspection (documentation) … recalculation. … client inquiries. … re-performance. … analytical procedures. … observation.
What are some examples of analytical procedures?
Examples of analytical procedures are as follows:Compare the days sales outstanding metric to the amount for prior years. … Review the current ratio over several reporting periods. … Compare the ending balances in the compensation expense account for several years. … Examine a trend line of bad debt expenses.More items…•
What is the purpose of analytical procedures in an audit?
Analytical procedures are used for the following purposes: To assist the auditor in planning the nature, timing, and extent of other auditing procedures. As a substantive test to obtain evidential matter about particular assertions related to account balances or classes of transactions.
What are the 4 phases of an audit process?
A typical audit is comprised of four stages: planning, fieldwork, reporting, and follow-up.
What is the strongest form of audit evidence?
The strongest form of confirmation is the blank positive confirm. A blank positive confirm asks the third-party to report the client’s asset balance back to the auditor without the prompt of the company’s recorded balance.
What are the 7 internal control procedures?
The seven internal control procedures are separation of duties, access controls, physical audits, standardized documentation, trial balances, periodic reconciliations, and approval authority.Separation of Duties. … Accounting System Access Controls. … Physical Audits of Assets. … Standardized Financial Documentation.More items…