BU547 Lecture Notes - Lecture 9: Current Liability, Accounts Receivable, Financial Statement
Document Summary
As the result of the audit work is compiled, there is ongoing supervision from the supervisor, manager, and partner. Together they assess the impact upon the risks and decide if further procedures have to be designed: the audit report represents a conclusion about the financial statements taken as a whole. Objective five: describe the major accounting cycles: an auditor conducts an audit efficiently by designing tests of similar transactions, the auditor may test the various systems or transaction cycles used by an entity. This procedure satisfies the second examination standard, and testing of controls is necessary if the auditor is to rely upon the controls: there are five major financial statement cycles, sales and receivables. Transactions in this cycle record sales, receivables, and cash receipts; these transactions are usually the responsibility of the entity"s accounts receivable departments: purchases and payables. This cycle includes transactions that record purchases of assets and expenses, current liabilities, and cash disbursements.
