Audit 4 - Audit Evidence Flashcards
(39 cards)
Standard Auditing Procedures
FIVE CARROT CARS
Footing, crossfooting, & recalculation
Inquiry
Vouching
Examination/inspection
Confirmation Analytical procedures Re-performance Reconciliation Observation Tracing
Cutoff review
Auditing related accounts simultaneously
Representation letter
Subsequent events review
Revenue Cycle
Includes sales revenues, receivables, and cash receipts
Expenditure Cycle
Includes purchases, payables, and cash disbursements
Inventory Cycle
Includes perpetual inventory, physical counts, and manufacturing costs
Investments Cycle
Includes investments in debt, equity, and the income received from investments
Property, Plant, & Equipment Cycle
Includes acquisitions & disposals and related depreciation expense
Payroll & Personnel Cycle
Includes payroll (salaried & hourly) and personnel functions
Financing Cycle
Includes debt & equity financing, repayments to borrowers, interest expense, and dividends
Working Capital Ratio
Current Assets - Current Liabilities
Current Ratio
Current Assets/Current Liabilities
Acid-Test Ratio
(Cash Equivalents+Marketable Securities+AR)/Current Liabilities
Cash Ratio
(Cash Equivalents+Marketable Securities)/Current Liabilities
Accounts Receivable Turnover
Net Credit Sales/Average Net Receivables
Accounts Receivable Turnover in Days
Average Net Receivables/(Net Credit Sales/365)
Inventory Turnover
Cost of Goods Sold/Average Inventory
Inventory Turnover in Days
Average Inventory/(Cost of Goods Sold/365)
Operating Cycle
AR Turnover in Days + Inventory Turnover in Days
Working Capital Turnover
Sales/Average Working Capital
Total Asset Turnover
Net Sales/Average Total Assets
Accounts Payable Turnover
COGS/Average Accounts Payable
Days in Accounts Payable
Average Accounts Payable/(COGS/365)
Net Profit Margin
Net Income/Net Sales
Return on Total Assets
Net Income/Average Total Assets
Return on Assets (Alternate Version)
Net Profit Margin x Total Asset Turnover
