Auditing and

ACC Assurance Concepts

313 and Applications
(Applied Auditing/ Auditing
Problems)
AUDIT
- A systematic process of objectively obtaining and evaluating evidence
regarding assertions about economic actions and events to ascertain the
degree of correspondence between these assertions and established
criteria and communicating the results thereof.

FS AUDIT
- a ‘systematic process’ because it involves a logical series of steps that
lead to the rendering of an opinion on the fairness of financial statements.
COMPLETE SET OF FINANCIAL
STATEMENTS
1. Statement of Financial Position - Assets, Liabilities, Equity
2. Statement of Comprehensive Income - Revenue, Expense
3. Statement of Changes in Equity - Equity and Income
4. Statement of Cash Flows - Cash
5. Notes to Financial Statements - Disclosures

Financial Statements – assertions or representation made by the entity,

through its management and those charged with governance, as
appropriate.
ASSERTIONS about:
T – Transactions and events
O – Occurrence
C – Completeness
C – Cut-off
A – Accuracy
C - Classification
A – Accounts and balances
C – Completeness
E – Existence
R – Rights and Obligations
V – Valuation and Allocation
P – Presentation and Disclosure
O – Occurrence and Rights and Obligations
C – Completeness
A – Accuracy and Valuation
C – Classification and Understandability
AUDIT PROCEDURES
MAJOR AUDIT PROCEDURES
- Risk Assessment Procedures
- Test of Controls
- Substantive Tests
- Test of Details (transactions, balances, disclosures)
- Substantive analytical procedures
SPECIFIC AUDIT PROCEDURES
- Inspection of records and documents
- Inspection of tangible assets
- Observation
- Inquiry
- Confirmation
- Analytical procedures
- Reperformance
- Recalculation