Risk assessment Flashcards
What does an audit plan include?
Nature, timing, and extent of procedures expected to reduce audit risk to an acceptably low level
What are risk assessment procedures?
performed to obtain an understanding of the entity and it’s environment, including it’s internal control
identify and assess RMMs at the level of financial statements as a whole and relevant assertions.
What is RMM an assessment of?
inherent risk and control risk
What are some audit planning procedures?
Reviewing prior audit documentation
reading current interim financial statements
coordinating assistance of entity personnel in data preparation
determining any involvement of consultants, specialists and internal auditors
Establish timing of work
What are substantive procedures designed for?
Detect material misstatements at assertion level.
What are the five sources of information used to develop analytical procedures?
Financial information from comparable prior periods
Anticipated results
Relationships among data
Comparable information from the Client’s Industry
Related non-financial information
The auditor of an issuer must express an opinion on the effectiveness of internal control. The opinion should be expressed..
As of a specified date.
he standard AICPA form directed to financial institutions requests…
Description collateral
Interest Rate
Date due
Population tested to determine whether all merchandise billed was received?
Vendor Invoices
Population tested to determine whether all merchandise received was recorded?
Receiving reports
