2. Understanding of the entity
3. Sufficient appropriate evidence
1. Statements disposed(p) in accordance with GAAP
2. Circumstances when GAAP not followed
3. adequacy of disclosures
4. Expression of opinion on financial statements
Types of Audit Evidence
1. sensual examination
2. Confirmation
3. Documentation
4. Analytical procedures
5. Inquiries of the client
6. Recalculation
7. Reperformance
8.
Observation
Analytical Procedures
? Understand the clients application and business
? Assess the entitys ability to continue as a
going concern
? Indicate the presence of possible misstatements
in the financial statements
? undertake detailed audit tests
fashion models of put on the line Factors for peculation of Assets
? There is an unequal to(predicate) indwelling control over
Assets
? Disregard for the need to monitor or reduce
risk of misappropriating assets exists
There is a disregard for internal controls
Example Elements for a Code of Conduct
Privacy and confidentiality
Specific Fraud Risk Areas
Revenue and accounts receivable fraud risks
Inventory fraud risks
Misappropriation of assets occurs either because of inadequate internal controls or a assault of existing controls. The best way to prevent larceny of assets is by adequate internal controls the function effectively.
http://www.scribd.com/doc/4622837/Auditing
drug-addicted opinion or disclaimer of opinion on internal control over financial reporting.
Fraud triangle:
1. Incentives/pressures
2. Opportunities-there is lean segregation of duties that allows the individual to handle cash receipts and associate accounting records
3. Attitudes/rationalization-management has disregarded the inadequate separation of duties that allows the potential theft of cash receipts
The auditor should determine the materiality of the lawsuit by requesting from attorneys an assessment of the legal...If you want to get a full essay, suppose it on our website: Ordercustompaper.com
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