AUD 3 Internal Control 1 Flashcards
1
Q
The Steps in an Audit
- Prepare for the audit
- Obtain Understanding of client,
its Environment,
including Internal Control - Assess Risks of Material Misstatement and
Determine Nature, Timing, and Extent
of Further Procedures - Perform Tests of Controls
- Perform Substantive Procedures
- Formulate an Opinion
- Issue Audit Report
A
The Steps in an Audit
- Prepare for the audit
- Obtain Understanding of client,
its Environment,
including Internal Control - Assess Risks of Material Misstatement and
Determine Nature, Timing, and Extent
of Further Procedures - Perform Tests of Controls
- Perform Substantive Procedures
- Formulate an Opinion
- Issue Audit Report
2
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform r___ assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
3
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk ass_________t procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
4
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment pro_____es to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
5
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
re_____s the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
6
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the a_____ to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
7
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to a___ss risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
8
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess r___ of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
9
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of m______ misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
10
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material miss_______t (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
11
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (R__)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
12
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (_MM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
13
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (___)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
14
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at b___ the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
15
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the f_______ statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
16
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial s________t level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
17
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement le___ and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
18
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the ass____n level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
19
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion le___.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
20
Q
Internal Control
AU-C 315,
Un_______ing the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
21
Q
Internal Control
AU-C 315,
Understanding the E____y and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
22
Q
Internal Control
AU-C 315,
Understanding the Entity and Its En_________t
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM)
at both the financial statement level and the assertion level.
23
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of in______ control relevant to the audit.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
24
Q
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to ob____ an understanding of internal control relevant to the audit.
A
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
25
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an u_________ing of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
26
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the e_____y to obtain an understanding of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
27
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal co____ relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
28
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the a____.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
29
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control re______ to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
30
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
re____es the entity to obtain an understanding of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the entity to obtain an understanding of internal control relevant to the audit.
31
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Ass___ing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
32
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of M_______ Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
33
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Miss________s,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
Internal Control
AU-C 315,
Understanding the Entity and Its Environment
and Assessing the Risks of Material Misstatements,
requires the auditor to perform risk assessment procedures to assess risk of material misstatement (RMM) at both the financial statement level and the assertion level.
It also requires the entity to obtain an understanding of internal control relevant to the audit.
34
What is RMM?
RMM = Risks of Material Misstatements
35
RMM = R___s of Material Misstatements
RMM = Risks of Material Misstatements
36
RMM = Risks of M______ Misstatements
RMM = Risks of Material Misstatements
37
RMM = Risks of Material M__________s
RMM = Risks of Material Misstatements
38
Internal Control
The ob______ of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
39
Internal Control
The objective of AU-C 315 is for the a_____ to identify and assess the risks of material misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
40
Internal Control
The objective of AU-C 315 is for the auditor to id____y and assess the risks of material misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
41
Internal Control
The objective of AU-C 315 is for the auditor to identify and a____s the risks of material misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
42
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the r___s of material misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
43
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of m_______ misstatement (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
44
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material miss_______t (RMM),
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
45
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to f___d or error,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
46
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or e___r,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
47
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether d__ to fraud or error,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
48
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
wh_____ due to fraud or error,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
49
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the f________ statement
and relevant assertion levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
50
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial s_________
and relevant assertion levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
51
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
a_ the financial statement
and relevant assertion levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
52
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
a__ relevant assertion levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
53
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and re_______ assertion levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
54
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant ass______ levels
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
55
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion le___s
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
56
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through un________ing the entity and its environment,
including the entity’s internal control,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
57
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the e____y and its environment,
including the entity’s internal control,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
58
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its e__________t,
including the entity’s internal control,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
59
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s i_______ control,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
60
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal co____l,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
61
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
thr_____ understanding the entity and its environment,
including the entity’s internal control,
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
62
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for des___ing and implementing responses
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
63
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and im_______ing responses
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
64
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing res_____es
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
65
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a ba___ for designing and implementing responses
to the assessed risks of material misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
66
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby pr____ing a basis for designing and implementing responses
to the assessed risks of material misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
67
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the as____ed risks of material misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
68
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed r___s of material misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
69
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of m_______ misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
70
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material mi__________t.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM),
whether due to fraud or error,
at the financial statement
and relevant assertion levels
through understanding the entity and its environment,
including the entity’s internal control,
thereby providing a basis for designing and implementing responses
to the assessed risks of material misstatement.
71
Internal Control
The ob______ of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM), whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.
Internal Control
The objective of AU-C 315 is for the auditor to identify and assess the risks of material misstatement (RMM), whether due to fraud or error, at the financial statement and relevant assertion levels through understanding the entity and its environment, including the entity’s internal control, thereby providing a basis for designing and implementing responses to the assessed risks of material misstatement.
72
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as noniss___s,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
73
Internal Control
Au_____s of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
74
Internal Control
Auditors of entities that do not report to the ___,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
75
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow G____,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
76
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are re____ed to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
77
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to fo____ GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
78
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (A__) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
79
What is ASB?
ASB = Auditing Standards Board
80
ASB = A____ing Standards Board
ASB = Auditing Standards Board
81
ASB = Auditing S_______s Board
ASB = Auditing Standards Board
82
ASB = Auditing Standards B____
ASB = Auditing Standards Board
83
Internal Control
Auditors of entities that do not r____t to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
84
Internal Control
Auditors of entities that do n__report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
85
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
is__ed by the Auditing Standards Board (ASB) of the AICPA.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
86
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the A____.
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers,
are required to follow GAAS,
issued by the Auditing Standards Board (ASB) of the AICPA.
87
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
ob___ and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
88
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and d_______t an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
89
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an un________ing of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
90
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the c____’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
91
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s i_______ controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
92
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal c_______s
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
93
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to as__ss the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
94
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the r___ of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
95
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of m_______ misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
96
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material miss________ (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
97
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (R__) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
98
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of i________ risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
99
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent r___ (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
100
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and c______ risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
101
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control r___ (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
102
IR = I________ Risk
IR = Inherent Risk
103
IR = Inherent R___
IR = Inherent Risk
104
CR = C______ Risk
CR = Control Risk
105
CR = Control R___
CR = Control Risk
106
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which co_____s of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
107
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards re____e the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
Internal Control
Auditors of entities that do not report to the SEC,
often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements,
which consists of inherent risk (IR) and control risk (CR).
108
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the R__ to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
109
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to de________ the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
110
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which de_______ risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
111
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection r___ (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
112
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to r_____ audit risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
113
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce a____ risk (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
114
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit r___ (AR) to an acceptable level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
115
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acc______ level.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
116
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable l____.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS, issued by the Auditing Standards Board (ASB) of the AICPA.
These standards require the auditor to obtain and document an understanding of the client’s internal controls in order to assess the risk of material misstatement (RMM) of the financial statements, which consists of inherent risk (IR) and control risk (CR).
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
117
DR = D_________ Risk
DR = Detection Risk
118
DR = Detection R___
DR = Detection Risk
119
AR = A____ Risk
AR = Audit Risk
120
AR = Audit R___
AR = Audit Risk
121
Internal Control
• When an a_____ believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
122
Internal Control
• When an auditor believes that the n_____, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
123
Internal Control
• When an auditor believes that the nature, t__ing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
124
Internal Control
• When an auditor believes that the nature, timing, or e____t of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
125
Internal Control
• When an auditor believes that the nature, timing, or extent of sub_______ testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
126
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive t___ing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
127
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be l____ed as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
128
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of eff_____ internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
129
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective i_______ control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
130
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal c______,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
131
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the a______ must perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
132
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must pe_____ tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
133
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor m___ perform tests of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
134
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform t___s of controls to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
135
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of c______s to verify that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
136
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to v____y that they are operating effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
137
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are op____ting effectively as designed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
138
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as des___ed and intended.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
139
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and in____ed.
Internal Control
• When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control,
the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
140
Internal Control
• The auditor draws a con______n,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
141
Internal Control
• The a_____ draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
142
Internal Control
• The auditor draws a conclusion,
based on t___s of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
143
Internal Control
• The auditor draws a conclusion,
based on tests of c______s,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
144
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the c______s can be relied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
145
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be r__ied upon
for the entire period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
146
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the ent___ period for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
147
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire pe____ for which controls were tested.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
148
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were t___ed.
Internal Control
• The auditor draws a conclusion,
based on tests of controls,
as to whether or not the controls can be relied upon
for the entire period for which controls were tested.
149
Internal Control
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
* When an a_____ believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
* The a______ draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
Internal Control
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
* When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
* The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
150
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.
The auditor then uses the R__ to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
* When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
* The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
Internal Control
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.
The auditor then uses the RMM to determine the extent to which detection risk (DR) must be reduced to reduce audit risk (AR) to an acceptable level.
* When an auditor believes that the nature, timing, or extent of substantive testing can be limited as a result of effective internal control, the auditor must perform tests of controls to verify that they are operating effectively as designed and intended.
* The auditor draws a conclusion, based on tests of controls, as to whether or not the controls can be relied upon for the entire period for which controls were tested.
151
Auditors of entities that do not re____ to the SEC, often referred to as nonissuers, are required to follow GAAS.
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS.
152
Which organization issued GAAS?
GAAS, issued by the Auditing Standards Board (ASB) of the AICPA
153
What GAAS required auditors of nonissuers to do?
These (GAAS) standards require the auditors to
obtain and document an understanding of the client’s internal controls
in order to assess the risk of material misstatement (RMM) of the financial statements
154
Auditors of entities that do not report to the SEC are required to follow _____
Auditors of entities that do not report to the SEC, often referred to as nonissuers, are required to follow GAAS
155
ASB = A______ Standards Board
ASB = Auditing Standards Board
156
ASB = Auditing S________ Board
ASB = Auditing Standards Board
157
ASB = Auditing Standards B_____
ASB = Auditing Standards Board
158
Auditors of nonissuers are required to follow _____.
Auditors of nonissuers are required to follow GAAS.
159
Auditors of non_______s are required to follow GAAS.
Auditors of nonissuers are required to follow GAAS.
160
Auditors of nonissuers are re____ed to follow GAAS.
Auditors of nonissuers are required to follow GAAS.
161
Internal Control
A______s of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
162
Internal Control
Auditors of entities that do report to the SEC, often referred to as i______s,
are also required to obtain an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
163
Internal Control
Auditors of entities that do report to the ___, often referred to as issuers,
are also required to obtain an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
164
Internal Control
Auditors of entities that do re____ to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
165
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to ob____ an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
166
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an un_______ing of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
167
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of in______ control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
168
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal co_____.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
169
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also re____ed to obtain an understanding of internal control.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers,
are also required to obtain an understanding of internal control.
170
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
ob____ and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
171
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and do_______ the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
172
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the un_______ing in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
173
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to ass___ the risk of material misstatement of the financial statements and to plan and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
174
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to p___ and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
175
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and per____ the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
176
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the au___.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to
obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
177
Internal Control
Auditors of e____ies that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
178
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires a______ of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
179
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated a____ of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
180
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial re____ing and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
181
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial st________s.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
182
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of b___ internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
183
Internal Control
Auditors of issuers:
Sarbanes-Oxley re____es auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
184
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of is__ers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
185
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to per____an integrated audit of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
186
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an int_____ed audit of both internal control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
187
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both in______ control over financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
188
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control ov__ financial reporting and of the financial statements.
Internal Control
Auditors of issuers:
Sarbanes-Oxley requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
189
Internal Control
Auditors of issuers:
In addition to ob____ing sufficient evidence to support the auditor’s control risk assessment,
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
190
Internal Control
Auditors of issuers:
In addition to obtaining su______t evidence to support the auditor’s control risk assessment,
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
191
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evi_____ to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
192
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to sup____ the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
193
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control r____ assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
194
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk ass_______t,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
195
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the a______’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
196
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s co_____ risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
197
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the au_____ is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
198
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to ob____ sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
199
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain su______t evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
200
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evi_____ to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
201
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to sup____ an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
202
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is re____ed to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
203
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opi____ on internal control over financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
204
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control o___ financial reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
205
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over f________ reporting (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
206
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial re____ing (ICFR)
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
207
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a sp_____c point in time, the date of the financial statements.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
208
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in t___, the date of the financial statements.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
209
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the d___ of the financial statements.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
210
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial st_______s.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
211
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (IC__)
as of a specific point in time, the date of the financial statements.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
212
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (_____)
as of a specific point in time, the date of the financial statements.
Internal Control
Auditors of issuers:
In addition to obtaining sufficient evidence to support the auditor’s control risk assessment,
the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR)
as of a specific point in time, the date of the financial statements.
213
What is ICFR?
ICFR = Internal Control over Financial Reporting
214
ICFR = I_______ Control over Financial Reporting
ICFR = Internal Control over Financial Reporting
215
ICFR = Internal C_____ over Financial Reporting
ICFR = Internal Control over Financial Reporting
216
ICFR = Internal Control over F______ Reporting
ICFR = Internal Control over Financial Reporting
217
ICFR = Internal Control over Financial R_______
ICFR = Internal Control over Financial Reporting
218
Internal Control
Auditors of entities that do report to the S__, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
As a result, in addition to obtaining sufficient evidence to support the auditor’s control risk assessment, the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR) as of a specific point in time, the date of the financial statements.
Internal Control
Auditors of entities that do report to the SEC, often referred to as issuers, are also required to obtain an understanding of internal control.
Like auditors of nonissuers, they are required to obtain and document the understanding in order to assess the risk of material misstatement of the financial statements and to plan and perform the audit.
Sarbanes-Oxley, however, requires auditors of issuers to perform an integrated audit of both internal control over financial reporting and of the financial statements.
As a result, in addition to obtaining sufficient evidence to support the auditor’s control risk assessment, the auditor is required to obtain sufficient evidence to support an opinion on internal control over financial reporting (ICFR) as of a specific point in time, the date of the financial statements.
