Seven audit procedures under ISA 500
About this set
Created by:
K_Electric on April 2, 2012
Subjects:
Log in to favorite or report as inappropriate.
Order by
8 terms
Terms | Definitions |
|---|---|
 7 audit procedures under ISA 500 | Inspection Observation External Confirmation Recalculation Reperformance Analytical Procedures Inquiry |
| Inspection | -Examining records or documents, whether internal or external, in paper or electronic or physical form -Reliability depending on nature and source and for internal records and documents, on the effectiveness of controls -May provide reliable audit evidence with respect to existence, but not necessarily about the entity's rights and obligations or valuation of the assets |
| Observation | -Looking at a process or procedure being performed by others -Provide audit evidence about the performance of a process or procedure, but limited to the point in time at which the observation takes place -The act of being observed may affect how the process or procedure is performed |
| External Confirmation | -Obtained by the auditor as a direct written response to the auditor from a third party (in paper form, by electronic or other medium) -Frequently used in relation to account balances and their constituent parts |
| Recalculation | -Checking the mathematical accuracy of documents or records -Can be performed manually or electronically |
| Reperformance | Auditor's independent execution of procedures or controls that were originally performed as part of the entity's internal control |
| Analytical Procedures | -Evaluations of financial information made by a study of plausible relationships among both financial and non-financial data -Investigation of identified fluctuations and relationships that are inconsistent with other relevant information or deviate significantly from predicted amounts |
| Inquiry | -Seeking information of knowledgeable persons, both financial and non-financial, within the entity or outside the entity -Range from formal written inquiries to informal oral inquiries -Evaluating responses to inquiries is an integral part of inquiry process -Responses provide a basis for the auditor to modify or perform additional audit procedures |
First Time Here?
Welcome to Quizlet, a fun, free place to study. Try these flashcards, find others to study, or make your own.