Week 8 - Dealing with Deviations Flashcards
(5 cards)
1
Q
What are deviations in this context?
A
When things aren’t quite what you expected to see / when the evidence isn’t supporting the information you have in the financial statements
2
Q
What do we need to do regarding management and deviations?
A
Ask management for an explanation and obtain corroborating audit evidence
3
Q
What do we need to question about management’s explanation?
A
Does the explanation adequately explain the deviation? Does the evidence support the explanation?
4
Q
What may we need to do?
A
Perform additional audit testing if required
5
Q
Why may we do additional testing?
A
To obtain reasonable assurance that there is no material misstatement or to quantify the value of a misstatement
