BU486 Chapter Notes - Chapter 11: Financial Audit, Audit Risk, Analytical Review
Document Summary
Financial audit examines the reliability and integrity of financial transactions, accounting records, and financial statements: 2. ) Information systems, or internal control, audit re(cid:448)ie(cid:449)s control of an ais to assess it"s compliance with policies and procedures in place: 3. ) Operational audit concerned with the economical and efficient use of resources: 4. ) compliance audit determine whether entities are complying with laws and regulation, policies and procedures, 5. ) Investigative audit examines incidents of possible fraud, misappropriation of assets, waste and abuse, or improper governmental activities. Evaluating evidence look at the e(cid:448)idence gather to see if it"s sufficient enough to reach a conclusion: 4. ) communicating audit results document findings and recommendations and communicate it with bod, management, and audit committee. Information system audits purpose is to evaluate internal controls: 6 objectives, 1. ) Computer processing: threats: failure to detect incorrect or unauthorized input data, controls: data editing routines, reconciliation of batch totals, 5. )
