BU477 Chapter Notes - Chapter 10: Internal Control, Accounts Receivable, Income Statement
Document Summary
Identify the characteristics of the engagement that define its scope: 2. Consider the factors that are significant in directing the audit team"s efforts: 4. Consider the results of the preliminary engagement activities: 5. Determine the nature, timing, and extent of resources necessary to perform the engagement. Types of tests: auditors use five types of tests to determine whether financial statements are fairly stated, 1. Make inquiries of appropriate client personnel: 2. Substantive tests of transactions: a procedure designed to test for dollar misstatements (due either to errors or to fraud) that directly affect the correctness of financial statement balances, auditors rely upon three types of substantive tests, 1. Analytical procedures: use of comparisons of recorded amounts to expectations developed by the auditor, two of the most important purposes of analytical procedures in the audit of account balances are to, 1.
