BU477 Chapter Notes - Chapter 9: Software Package, Capital Structure, Asset
Document Summary
Audit evidence and associated decisions: nature of evidence. Audit evidence = any info used by auditor to determine whether f/s being audited is stated in accordance with established criteria. Evidence gathered in all phases of audit process: Help auditor decide where there could be risk of material misstatement in f/s. As response to risks at assertion level. To document quality control, supervision, and overall conclusions about type of audit report. Tests of controls: audit procedures designed to evaluate the operating effectiveness of controls at assertion level. Substantive procedures: audit procedures designed to detect material misstatements in accounts which include tests of details and analytical procedures. Auditor needs to link completed audit work to assessed risks at assertion level (transactions, balances, f/s disclosure) and document conclusions and results of audit procedures. Identifying risks helps auditor determine appropriate types of amount of evidence to accumulate to be satisfied that components of f/s and overall statements are fairly stated.
