BU477 Lecture Notes - Lecture 6: Finished Good, Financial Statement, General Ledger
Document Summary
Cycle approach to segmenting an audit (big part!) Bu477- week 3, lecture 2: a common way to divide an audit is to keep closely related types (or classes) of transactions and account balances in the same segment. Implied or expressed representations by management about: (i) classes of transactions or events, (ii) related account balances in the financial statements, and (iii) the classification, presentation, or disclosure of information in the financial statements. Send a bank confirmation- bank will come back and confirm. E(cid:454)(cid:272)ept the (cid:271)a(cid:374)k (cid:272)o(cid:374)fir(cid:373)s that there"s i(cid:374) the (cid:271)a(cid:374)k existence has been violated because the extra reported is fictitious: same procedure testing for completeness: say the bank balance said on the fs. No(cid:449) there"s (cid:272)o(cid:373)plete(cid:374)ess (cid:271)e(cid:272)ause there"s missing in the records that actually is in the bank. Are things recorded as raw materials, materials in process, finished.
