ACCT 475 Lecture Notes - Lecture 9: Digital Evidence, Audit Risk, Fax

• School: McGill University
• Department: Accounting
• Course: ACCT 475
• Professor: Kevin Paul Parent

Document Summary

Those charged with governance of an entity are responsible for ensuring that the financial statements provide a fair presentation of the entity and its operations. Management make assertions about each account and related note disclosures: assertions are statements regarding the recognition, measurement, presentation, and disclosure of items included in the financial statements. Relates to designing audit procedures later on in the course. Assertions are the responsibilities of management to make them 3 categories (transaction, balances, and presentation & disclosures: example: t-accounts. Collection of a/r: ending balance is validated by the list of a/r balances, (cid:863) ales o(cid:374) (cid:272)(cid:396)edit(cid:863) a(cid:374)d (cid:862)(cid:272)olle(cid:272)tio(cid:374) of a/r(cid:863) a(cid:396)e e(cid:454)a(cid:373)ples of t(cid:396)a(cid:374)sa(cid:272)tio(cid:374)s. Auditors to use assertions for transactions, account balances, and presentation and disclosures when assessing the risk of material misstatement and designing audit procedures. Transaction based assertions focus on the transactions that took place during the period as opposed to the account balance.