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determine the factors of auditorswhen anticipating to apply analytical review as a substantive procedure auditors determine a number of factors
state the analytical procedures at the planning stage auditors must apply analytical procedures at the planning stage to help in understanding the
analytical procedures of auditorsauditors must apply analytical procedures at the planning and overall review stage of auditanalytical procedures
checklists or questionnairesaudit firm will have a standard list of control questions audit staff can quickly ascertain which if any are in operation
iceqsgo beyond icqs discover whether error or fraud is possible concentrates on significant frauds or errors which might be possible and so only a
icqs designed to identify possible areas of weakness discover existence of internal controlsquestions are framed to highlight situations where
flowcharts - documenting the accounting systemdepict in outline the sequence of events in a system showing document flow and department or function
examples of icqs and iceqsicq does an authorised senior person review purchase invoices before payment is madeiceq can payments be made on purchase
documenting the accounting systemthere are 3 methods generally used to document the clients systemnarrative noteswritten description of the
state about the detection riskthis is the risk that auditors substantive procedures dont detect a material misstatement in an account balance or
what is control riskthat material misstatement could take place and not be detected or prevented on a timely basis by accounting and internal control
account balance - inherent risk at account balance class of transaction level balances susceptible to misstatement history of errors complexity of
at entity level - inherent risk integrity of management managements experience and knowledge over reliance on key customers unusual pressures on
what is inherent risksusceptibility of an account balance or class of transactions to material
determine the calculation of materialityfor exampleturnover 1 -15net assets 1 -2net profit 2 -6whatever numbers are selected they would be based on
what are the material items are carried outmaterial items would have an impact on audit tests carried out for illustration compliance based testing
discuss about the materialityan item can be considered material if its omission would reasonably influence the decisions of an addressee of report a
walk-through tests - auditorbull walk-through tests -that is tracing one or more transactions by accounting system and observing application of
state about the audit plan contents1 report requirements and terms of reference2 a review of business and financial position reviewing why changes
explain the concepts of planning the work determine scope and objective of the audit to verify assets to check adequacy of internal controls etc
explain the major types of audit plansthree major types of audit plansstrategic -this the long term forward looking audit it continually gets updated
what is planninginternal auditors must plan the audit work so as to perform the audit in an effective mannerthere must be sufficient audit programmes
examine about the risk-based auditinga risk based audit will be reviewing the risk management process and considering main risks of the organisation
illustrations of substantive tests agree a sample of wages payments to the existence of these individuals and personnel records agree a sample of
what is substantive tests or transactions based auditingtests to attain audit evidence to detect material misstatements in financial statements using