Our Contract
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Come On Time
be well Prepared
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Complete Assignments on Time
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the Confusion!
Ask for Help When Needed
Advanced Auditing
Course Outline
Chapter 8: Audit Planning and Materiality
Chapter 9: Assessing the Risk of Material Misstatement
Chapter 10: Assessing and Responding to Fraud Risk
Chapter 11: Internal Control and COSO Framework
Chapter 12: Completing the Audit
Revision on
Auditing
Auditing is the accumulation and evaluation of
evidence about information to determine and report on
the degree of correspondence between the information
and established criteria. Auditing should be done by a
competent, independent person.
Evidence is any information used by the
auditor to determine whether the information
being audited is stated in accordance with the
established criteria.
Types of Audit Evidence
1. Physical Examination 5.Inquiries of the client
2.Confirmation 6.Recalculation
3.Inspection 7.Reperformance
4.Analytical Procedures 8.Observation
Explain the Objective of Conducting an Audit of Financial
Statements and an Audit of Internal Controls.
The preface to the clarified AICPA auditing standards indicates
The purpose of an audit is to provide financial statement users with an
opinion by the auditor on whether the financial statements are
presented fairly, in all material respects, in accordance with the
applicable financial accounting framework. An auditor’s opinion
enhances the degree of confidence that intended users can place in the
financial statements.
Distinguish Management’s Responsibility for the Financial
Statements From the Auditor’s Responsibility For
Verifying Those Statements.
Management’s
1. AdoptingResponsibility
sound accounting policies
2. Maintaining adequate internal control
3. Making fair representations in the financial statements
4. Ensuring the company complies with applicable laws and
regulations
The Auditor’s Responsibility
AICPA auditing standards state
The overall objectives of the auditor, in conducting an audit of financial statements, are to:
a. Obtain reasonable assurance2 about whether the financial statements as a whole are free
from material misstatement1, whether due to fraud or error, thereby enabling the auditor
to express an opinion on whether the financial statements are presented fairly, in all
material respects, in accordance with an applicable financial reporting framework; and
b. Report on the financial statements, and communicate as required by auditing standards, in
accordance with the auditor’s findings.
