Professional Documents
Culture Documents
Modern Auditing:
Auditing:
Assurance
Assurance Services
Services and
and the
the Integrity
Integrity
th
of
Financial
Reporting,
8
of Financial Reporting, 8th Edition
Edition
William C. Boynton
Raymond N. Johnson
Portland State University
Chapter
Chapter Overview
Overview
Completing
Completing the
the Audit
Audit
Do not pertain to specific transaction
cycles or accounts
Performed after the balance sheet date
Involve many subjective judgments
Usually performed by audit managers or
other senior members of the audit team
Completing
Completing the
the Fieldwork
Fieldwork
Making Subsequent Events Review
Types of Events
Subsequent
Subsequent Events
Events
Completing
Completing the
the Fieldwork
Fieldwork
Reading Minutes of Meetings
Obtaining Evidence Concerning
Litigation, Claims, and Assessments
Audit Considerations
Completing
Completing the
the Fieldwork
Fieldwork
Obtaining Client Representation
Letter
Content of Representation Letter
Effects on the Auditors Report
Evaluating
Evaluating the
the Findings
Findings
Making Final Assessment of Materiality and
Audit Risk
Known Misstatements
Evaluating
Evaluating the
the Findings
Findings
Evaluating Going Concern
Substantial Doubt Exists
Evaluating
Evaluating the
the Findings
Findings
Making Technical Review of
Financial Statements
Evaluating
Evaluating the
the Findings
Findings
Formulating Opinion and Drafting Audit
Report on Internal Controls Over
Financial Reporting
Opinion about fairness of managements
assertion on internal controls
Opinion about adequacy of internal controls
First-level
Manager
Partner
Cold Review
Study
Study Break
Break
1. These types of events provide evidence
with respect to conditions that did not
exist at the date of the balance sheet
but arose subsequent to that date.
A.
B.
C.
D.
Study
Study Break
Break
2. This item is obtained to complement
other audit procedures, including
confirmation of oral representations
given to the auditor by management.
A.
B.
C.
D.
Study
Study Break
Break
3. The total of uncorrected
misstatements, projected uncorrected
misstatements, and estimated
misstatements for an account is called
______.
A.
B.
C.
D.
Known misstatement
Likely misstatement
Aggregate likely misstatement
Tolerable misstatement
B. Likely misstatement
Communicating
Communicating with
with the
the Client
Client
Communicating Internal Control
Matters
Significant Deficiency
Material Weakness
Communicating
Communicating with
with the
the Client
Client
Communicating Matters Pertaining to
Conduct of Audit
Auditors responsibility under GAAS
Significant accounting policies
Auditors judgment about the quality of the
entitys accounting principles
Management judgments and accounting
estimates
Communicating
Communicating with
with the
the Client
Client
Communicating Matters Pertaining to
Conduct of Audit
Significant audit adjustments
Communicating
Communicating with
with the
the Client
Client
Preparing Management Letter
Internal Control Matters
Tax-related Matters
Summary
Summary of
of Completing
Completing the
the
Audit
Audit
Postaudit
Postaudit Responsibilities
Responsibilities
Subsequent Events Between Report
Date and Issuance of Report
Study
Study Break
Break
4. This is an internal control deficiency
that adversely affects the companys
ability to initiate, record, process or
report external financial data reliably in
accordance with GAAP.
A.
B.
C.
D.
Material weakness
Corroboration
Misappropriation
Significant deficiency
D. Significant deficiency
Study
Study Break
Break
5. The management letter may
include all of the following items,
except:
A.
B.
C.
D.