Study sets matching "auditing management"

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Study sets matching "auditing management"

18 terms
Auditing Audit Objectives & Management Assertions
Occurrence
Completeness - T
Accuracy - T
Posting and Summarization
Transaction -Recorded sales are for shipments made to non-fic…
Transaction - Existing sales transactions are recorded - Comp…
Transaction - (Initial recording of information) Recorded sal…
Transaction - (Accurate transfer of info within ACTG system)…
Occurrence
Transaction -Recorded sales are for shipments made to non-fic…
Completeness - T
Transaction - Existing sales transactions are recorded - Comp…
17 terms
Auditing management assertions
What are the 3 categories of assertion…
Transaction and Events
Completeness
Proper period cutoff
1. Transaction and events = during audit... 2. Account Balances…
Completeness... Proper period cutoff... Classification... Occurrence... A…
-Transaction and Events... All transaction and events that shoul…
-Transaction and Events... Transactions and events have been rec…
What are the 3 categories of assertion…
1. Transaction and events = during audit... 2. Account Balances…
Transaction and Events
Completeness... Proper period cutoff... Classification... Occurrence... A…
31 terms
Auditing Chapter 4: Management Fraud & Audit Risk
Enterprise risk management is the resp…
Failure to meet company objectives is…
Auditing standards do not require audi…
If sales were overstated by recording…
A
C
D
D
Enterprise risk management is the resp…
A
Failure to meet company objectives is…
C
Management Assertions and Audit Objectives
Management Responsibilities
Auditor Responsibilities
Overall Objective of an Audit
Management Assertions
1. Management is responsible for the financial statements and…
1. The auditor is responsible to provide reasonable assurance…
1. Collect evidence sufficient to allow for the expression of…
1. Assertions about transactions and events... 2. Assertions abo…
Management Responsibilities
1. Management is responsible for the financial statements and…
Auditor Responsibilities
1. The auditor is responsible to provide reasonable assurance…
29 terms
Audit Evidence and Management Assertions
Third Standard of Field Work
Audit Evidence
Evidence Accumulation
Management Assertions
States that the auditor must accumulate sufficient, competent…
Should be reliable (appropriate to test an assertion) and rel…
Evidence is typically accumulated by segments, including 1. B…
Tested for validity (existence), completeness, valuation, pre…
Third Standard of Field Work
States that the auditor must accumulate sufficient, competent…
Audit Evidence
Should be reliable (appropriate to test an assertion) and rel…
Management Fraud and Audit Risk
Fraudulent Financial Reporting
Misappropriation of Assets
Financial Statements
Errors
material fraud conducted on behalf of the company to deceive…
-conduced against the company by an employee, customer, vendo…
Errors... Management Fraud... Direct-effect illegal acts
unintentional misstatements or omissions
Fraudulent Financial Reporting
material fraud conducted on behalf of the company to deceive…
Misappropriation of Assets
-conduced against the company by an employee, customer, vendo…
Audit Chapter 4- Management Fraud and Audit Risk
business risk
better understand the client's busines…
inherent risk
audit risk
risks that could adversely affect the companies' ability to a…
the foundation of the company and the industry knowledge allo…
results of the events and transactions are recorded through i…
the risk that an incorrect opinion will be given
business risk
risks that could adversely affect the companies' ability to a…
better understand the client's busines…
the foundation of the company and the industry knowledge allo…
8 terms
Stage management Audition prep
know the show
aware of director's vision
prepare space
organize side readers ?
be able to answer questions
...
clean... set up chairs and tables
...
know the show
be able to answer questions
aware of director's vision
...
Management Assertions- Audit 4330
Occurrence
Completeness
Authorization
Accuracy
transactions and events that have been recorded have occurred…
all transactions and events that should have been recorded ha…
all transactions and events have been properly authorized
amounts and other data relating to recorded transactions and…
Occurrence
transactions and events that have been recorded have occurred…
Completeness
all transactions and events that should have been recorded ha…
12 terms
Management Fraud and Audit Risk
What are the 2 types of fraud?
What is a F/S error?
What is management fraud in regards to…
What is a noncompliance direct-effect…
Fraudulent Financial Reporting... Misappropriation of Assets
An unintentional misstatement or omission
An intentional misstatement or omission
A violation of laws or gov. regulations by the company or its…
What are the 2 types of fraud?
Fraudulent Financial Reporting... Misappropriation of Assets
What is a F/S error?
An unintentional misstatement or omission
5 terms
AUDIT - MANAGEMENT ASSERTIONS
EXISTENCE OR OCCURRENCE
RIGHTS AND OBLIGATIONS
COMPLETENESS
VALUATION OR ALLOCATION
VERIFYING OCCURRENCE OF EVENTS AND TRANSACTIONS & EXISTENCE O…
DETERMINE THE AMOUNTS REPORTED AS ASSETS OF THE COMPANY REPRE…
ASSERTING ALL TRANSACTIONS, EVENTS, ASSETS, LIAIBLITIES, AND…
DETERMINE WHETHER PROPER VALUES HAVE BEEN ASSIGNED TO ASSETS,…
EXISTENCE OR OCCURRENCE
VERIFYING OCCURRENCE OF EVENTS AND TRANSACTIONS & EXISTENCE O…
RIGHTS AND OBLIGATIONS
DETERMINE THE AMOUNTS REPORTED AS ASSETS OF THE COMPANY REPRE…
61 terms
Chapter 13: Auditing the Inventory Management Process
analytical procedures
application control
assertions
computer-assisted audit techniques
evaluations of financial information made through analysis of…
controls that apply to the processing of specific computer ap…
expressed or implied representations by management regarding…
CAAT. computer programs that allow auditors to test computer…
analytical procedures
evaluations of financial information made through analysis of…
application control
controls that apply to the processing of specific computer ap…
7 terms
audit ch 04 Management fraud and audit risk
risk of material misstatement
control risk
inherent risk
detection risk
Likelihood that material misstatements may have ENTERED the a…
probability that the client's internal control activities wil…
probability that in the absence of internal controls, materia…
The risk that the auditors' own testing procedures will lead…
risk of material misstatement
Likelihood that material misstatements may have ENTERED the a…
control risk
probability that the client's internal control activities wil…
18 terms
Audit User Account Management
Local Group Policy->Computer Configura…
Event Viewer
4723
4738
Security, Advanced Audit Policy Configuration | Account Manag…
Windows Logs, Security
The user attempted to change his/her own password. Subject an…
A user account was changed
Local Group Policy->Computer Configura…
Security, Advanced Audit Policy Configuration | Account Manag…
Event Viewer
Windows Logs, Security
6 terms
AUDIT: Management's Assertions
Existence
Completeness
Rights/Obligations
Valuation
Assets, liabilities and equity balances exist at the period e…
All assets, liabilities and equity balances that were suppose…
Entity has the right to ownership or use of the recognized as…
Assets, liabilities and equity balances have been valued appr…
Existence
Assets, liabilities and equity balances exist at the period e…
Completeness
All assets, liabilities and equity balances that were suppose…
17 terms
Management Fraud and Audit Risk
What are the two types of fraud?
What are errors?
What is management fraud?
What are noncompliance acts?
1) Fraudulent Financial Reporting -> by clients... 2) Misappropr…
unintentional misstatements or omissions
intentional misstatement or omissions
violations of laws or government regulations by the company o…
What are the two types of fraud?
1) Fraudulent Financial Reporting -> by clients... 2) Misappropr…
What are errors?
unintentional misstatements or omissions
10 terms
Audit - Ch. 4 - Management Fraud and Audit Risk
Audit Risk
Management Fraud Risk
Error
Employee Fraud
Risk that an auditor may unknowingly fail to modify the opini…
Management intentionally misstates financial statements.
Unintentional misstatements or omissions of amounts or disclo…
use of fraudulent means to misappropriate funds or other prop…
Audit Risk
Risk that an auditor may unknowingly fail to modify the opini…
Management Fraud Risk
Management intentionally misstates financial statements.
6 terms
Managing the internal audit function
Due diligence
Value proposition
Accounts payable turnover ratio
Due care
The process of investigating a person, business, or financial…
Positioning statement that describes added value to a customer.
The financial ratio that includes all outstanding obligations…
The level of caution that an individual exercises when perfor…
Due diligence
The process of investigating a person, business, or financial…
Value proposition
Positioning statement that describes added value to a customer.
Audits in Risk Managment
Good plan
How do we treat risks?
Plan should be unique and be developed…
Layers of protection
analyzes all potential risks that an organization faces and s…
1. Avoidance... 2. Reduction... 3. Retention... 4. Transfer
true
whenever an identified risk cannot be completely eliminated,…
Good plan
analyzes all potential risks that an organization faces and s…
How do we treat risks?
1. Avoidance... 2. Reduction... 3. Retention... 4. Transfer
38 terms
audit ch 4 management fraud and audit risk
what is business risk
how do you mitigate these risk?
what is ERM
how does ERM help the audit process
Business risk are factors of conditions that could prevent or…
management needs timely, relevant, and reliable information
enterprise risk management
it is a framework that helps auditors understand the clients…
what is business risk
Business risk are factors of conditions that could prevent or…
how do you mitigate these risk?
management needs timely, relevant, and reliable information
14 terms
Audit Program and Business Applications: Audit Program Management
What are 3 audit areas that require pr…
What are the 3 possible times that an…
What are the 6 procedures for auditor…
What are the 4 procedures for audit ex…
1. audit scheduling... 2. auditor maintenance... 3. audit execution
1. routinely scheduled... 2. prompted by significant changes in…
1. general auditor qualifications... 2. standards for ethical co…
1. process for planning audits... 2. process for conducting audi…
What are 3 audit areas that require pr…
1. audit scheduling... 2. auditor maintenance... 3. audit execution
What are the 3 possible times that an…
1. routinely scheduled... 2. prompted by significant changes in…
16 terms
GTAG-12 Auditing IT Projects: Appendix A - Project Management
Frameworks
Guidelines
Techniques/Methods
Templates and Samples
Composed of phases, activities, and tasks.
Define the activities require to generate deliverables.
Provide guidance on how to perform activities.
Makes it easier to apply recommended techniques.
Frameworks
Composed of phases, activities, and tasks.
Guidelines
Define the activities require to generate deliverables.
9 terms
Ch 13 (terms) Auditing the Inventory Management process
Analytical procedures
Application controls
Assertions
Computer-assisted audit techniques (CA…
Evaluations of financial information through analysis of plau…
Controls that apply to the processing of specific computer ap…
Expressed or implied representations by management that are r…
Computer programs that allow auditors to test computer files…
Analytical procedures
Evaluations of financial information through analysis of plau…
Application controls
Controls that apply to the processing of specific computer ap…
9 terms
Audit Chapter 5 - Management Assertions
Occurence/Validity/Existence
Completeness
Authorization
Accuracy
The occurrence assertion relates to whether all recorded tran…
The completeness assertion relates to whether all transaction…
the authorization assertion relates to whether all transactio…
The accuracy assertion addresses whether amounts and other da…
Occurence/Validity/Existence
The occurrence assertion relates to whether all recorded tran…
Completeness
The completeness assertion relates to whether all transaction…
11 terms
Chapter 13 - Auditing the Inventory Management Process
Risk of Misstatement
Existence & Occurrence Errors/Fraud
Completeness Errors/Fraud
Valuation Errors/Fraud
-Inclusion of fictitious inventory... -Overstatement of inventor…
-Segregation of Duties... -Inventory Management... -Cost accounti…
-Adequate Records... -Item numbers for every item... -Requisition…
-Proper authorization of production schedules... -Adequate Recor…
Risk of Misstatement
-Inclusion of fictitious inventory... -Overstatement of inventor…
Existence & Occurrence Errors/Fraud
-Segregation of Duties... -Inventory Management... -Cost accounti…
73 terms
GTAG-5 Managing and Auditing Privacy Risks: Glossary
Acceptable risk
Access
Alternative dispute resolution
Aggregate
The level of risk that management finds acceptable to a parti…
With respect to privacy, an individual's ability to view, mod…
Methods used to resolve disputes out of court, including nego…
Data that is combined without releasing personally identifiab…
Acceptable risk
The level of risk that management finds acceptable to a parti…
Access
With respect to privacy, an individual's ability to view, mod…
17 terms
Ch. Management Fraud and Audit Risk
Audit risk
audit risk model
inherent risk
control risk
probability that an auditor will an unqualified opinion on ma…
IR x CR x DR = AR
-the likelihood that in the absence of internal controls, mat…
-the likelihood that a material error or fraud will not be ca…
Audit risk
probability that an auditor will an unqualified opinion on ma…
audit risk model
IR x CR x DR = AR
12 terms
Audit Procedures (Management/Category/Assertion)
Sending a written request to the clien…
Examining large sales invoices for a p…
Agreeing the total of the accounts rec…
Discussing the adequacy of the allowan…
(Management assertions)... Conformation ... (Category of assertion…
(Management assertions)... Inspection of records or documents... (…
(Management assertions)... Inspection of records or documents OR…
(Management assertions)... Inquiry... (Category of assertion)... Acco…
Sending a written request to the clien…
(Management assertions)... Conformation ... (Category of assertion…
Examining large sales invoices for a p…
(Management assertions)... Inspection of records or documents... (…
Audit Objectives Transaction - Management Assertions
AO: Occurence
AO: Completeness
AO: Accuracy
AO: Classification
MA: Occurence
MA: Completeness
MA: Accuracy... MA: Posting and Summarization
MA: Classification
AO: Occurence
MA: Occurence
AO: Completeness
MA: Completeness
19 terms
Chapter 13: Auditing the inventory management process
Key assertions and errors
Controls: E/O Fictitious Transactions
Controls: Completeness Unrecorded tran…
Controls: Ownership Improperly classif…
-Existence/Occurrence: fictitious accounts and transactions... -…
Segregation of Duties ... -inventory management ... -cost accountin…
Adequate records (pre-numbered) ... -item numbers for every item…
See controls for consigned inventory BOOK
Key assertions and errors
-Existence/Occurrence: fictitious accounts and transactions... -…
Controls: E/O Fictitious Transactions
Segregation of Duties ... -inventory management ... -cost accountin…
26 terms
Audit Managements Financial Statement Assertions
The CONFIRMATION of an account payable…
The audit objective that all the trans…
An auditor selected items from the cli…
The audit objective that all balances…
Existence
Existence or occurrence
existence
Rights and obligations
The CONFIRMATION of an account payable…
Existence
The audit objective that all the trans…
Existence or occurrence
17 terms
GTAG-6 Managing and Auditing IT Vulnerabilities: Glossary
Business owners
Change Management
Configuration Management
Configuration Item
Those responsible for an assest's business... function.
The goal of the Change Management... process is to ensure that s…
The process responsible for... maintaining information about Con…
Generally, any data regarding, or request... for change concerni…
Business owners
Those responsible for an assest's business... function.
Change Management
The goal of the Change Management... process is to ensure that s…
6 terms
Managing the internal audit function 2
Financial leverage
Times interest earned
Strategic planning
Operating leverage
The use of fixed interest in the form of debt or preferred eq…
A measure of an organizations ability to service all of its l…
The process organizations use to determine where they want to…
The proportion of fixed cost used in the production of goods…
Financial leverage
The use of fixed interest in the form of debt or preferred eq…
Times interest earned
A measure of an organizations ability to service all of its l…
Audit Test Management's Assertions
Existence & Occurrence
Completeness
Valuation or Allocation
Rights or Obligations
assets and liabilities exist at a given date, and recorded tr…
all transactions and accounts that should be presented in the…
assets, liability, equity, revenue, and expense components ha…
The company holds or controls rights to the assets, and liabi…
Existence & Occurrence
assets and liabilities exist at a given date, and recorded tr…
Completeness
all transactions and accounts that should be presented in the…
12 terms
Business p. Management external audit
What two components make up the extern…
Name some goals of the external audit
Name some challenges of the external a…
What makes up the PEST model
1. Macro environment (political, environmental, sociological)…
To identify and analyze current issues and trends outside the…
Time consuming... Increasing paces of change
Political-government policies... Economic-home he economy trends…
What two components make up the extern…
1. Macro environment (political, environmental, sociological)…
Name some goals of the external audit
To identify and analyze current issues and trends outside the…
8 terms
Ch 12 (terms) Auditing the HR management process
Analytical procedure
Application controls
Assertions
General controls
Evaluations of financial information through analysis of plau…
Controls that apply to the processing of specific computer ap…
Expressed or implied representations by management that are r…
Controls that relate to the overall information-processing en…
Analytical procedure
Evaluations of financial information through analysis of plau…
Application controls
Controls that apply to the processing of specific computer ap…
53 terms
CH 4 - Management Fraud and Audit Risk
Accounting Estimates
Analytical Procedures
Audit Committee
Audit Risk
The approximations of financial statement numbers often inclu…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
Accounting Estimates
The approximations of financial statement numbers often inclu…
Analytical Procedures
The reasonableness tests used to gain an understanding of fin…
45 terms
COR Audit - Owner, Manager, Supervisor
Does the health and safety policy outl…
What is the purpose of health and safe…
Are hazards identified and assessed be…
Are they re-assessed as the job progre…
Yes
To provide a healthy and safe work environment for everyone w…
Yes. Field level hazard assessments are completed by workers…
Yes. If the job changes or weather changes they re-access or…
Does the health and safety policy outl…
Yes
What is the purpose of health and safe…
To provide a healthy and safe work environment for everyone w…
8 terms
Auditing - Management's Financial Statement Assertions
Existence
Occurrence
Rights and Obligations
Completeness
Asserts that each of the Balance Sheet and Income Statement B…
Asserts that each of the income statement events and transact…
Entity has a legal claim on all assets and revenues reported…
All balances and transactions have been recorded in the finan…
Existence
Asserts that each of the Balance Sheet and Income Statement B…
Occurrence
Asserts that each of the income statement events and transact…
40 terms
Ch 4 Management of Fraud and Audit Risk PP
Business Risk
Information Risk
Auditor's Risk Responsibilities
Audit Risk
failure to meet objectives... - Objectives—overall plans... - Strat…
---financial statements will be misstated.
Audit Risk... Management Fraud Risk... Errors
—auditor will give unqualified opinion on misstated financial…
Business Risk
failure to meet objectives... - Objectives—overall plans... - Strat…
Information Risk
---financial statements will be misstated.
25 terms
Management Assertions & Audit Objectives (Chapter 6)
Management Assertions
Relevant Assertions
Auditing
PCAOB Assertions
Implied or expressed representations by management about clas…
Assertions that have a meaningful bearing on whether an accou…
A comparison of information (financial statements) to establi…
1. Existence/Occurrence... 2. Completeness... 3. Valuation or Alloc…
Management Assertions
Implied or expressed representations by management about clas…
Relevant Assertions
Assertions that have a meaningful bearing on whether an accou…
50 terms
Chapter 13: Auditing the Inventory Management Process
The Inventory management process _____…
How does the IMP interact with purchas…
How does the IMP interact with revenue…
Why does inventory represent one of th…
interacts
purchasing buys the raw materials and pays manufacturing over…
revenue process sales the goods
Difficulty in auditing inventory enters in at assigning costs…
The Inventory management process _____…
interacts
How does the IMP interact with purchas…
purchasing buys the raw materials and pays manufacturing over…
29 terms
Ch. 4 Management Fraud & Audit Risk
accounting estimates
analytical procedures
audit committee
audit risk
The approximations of financial statement numbers often inclu…
The reasonableness tests used to gain an understanding of fin…
A subset of a company's board of directors composed of outsid…
The risk that the auditor will express an inappropriate audit…
accounting estimates
The approximations of financial statement numbers often inclu…
analytical procedures
The reasonableness tests used to gain an understanding of fin…
Remote Management, Disaster Planning, Backups and Auditing
Remote management
Use 1
Use 2
Use 3
means that the network manager can do many tasks remotely wit…
seeing what users are doing on the network
monitoring email and internet use by all staff
checkking the users are not using more copies of software is…
Remote management
means that the network manager can do many tasks remotely wit…
Use 1
seeing what users are doing on the network
27 terms
Ch.3 Management Fraud and Audit Risk
Accounting estimates
Analytical procedures
Audit commitees
Audit program
Approximations of financial statement numbers often included…
Reasonableness tests used to gain an understanding of financi…
A subset of a company's board of directors composed of outsid…
A list of the audit procedures the auditors need to perform t…
Accounting estimates
Approximations of financial statement numbers often included…
Analytical procedures
Reasonableness tests used to gain an understanding of financi…
25 terms
Ch4 Management Fraud and Audit Risk
Business Risk
Information Risk
Audit Risk
management fraud risk
failure to meet objectives; all the things that could make th…
Financial Statements will be misstated; management is concern…
auditor will give unqualified opinion on misstated financial…
management intentionally misstates financial statements
Business Risk
failure to meet objectives; all the things that could make th…
Information Risk
Financial Statements will be misstated; management is concern…
Auditing- Management's Financial Statement Assertions (PCAOB)
Existence or Occurrence
Rights and obligations
Completeness
Valuation or allocation
Assets and liabilities included in the accounts exist and rec…
Entity has a legal claim on all assets and revenues reported…
All balances and transactions have been recorded in the finan…
Assets, liabilities and recorded transactions have been value…
Existence or Occurrence
Assets and liabilities included in the accounts exist and rec…
Rights and obligations
Entity has a legal claim on all assets and revenues reported…
50 terms
Chapter 4 MANAGEMENT FRAUD & AUDIT RISK
AUDIT RISK =
IR + CR
audit risk
inherent risk
f(inherent risk, control risk, detection risk)
material misstatement
risk the audit partner is WILLING TO ACCEPT that they give WR…
risk of the inherent nature of the industry, environment or b…
AUDIT RISK =
f(inherent risk, control risk, detection risk)
IR + CR
material misstatement
27 terms
Internal Audit Ch 4- Risk Management
COSO definition of Risk
ISO 31000 definition of Risk
Risk
Why has Risk Management become a hot t…
possibility that an event will occur and adversely affect the…
the effect of uncertainty on objectives
any issue that will keep you from achieving your objectives
historical methods have been insufficient for today's busines…
COSO definition of Risk
possibility that an event will occur and adversely affect the…
ISO 31000 definition of Risk
the effect of uncertainty on objectives
21 terms
Chapter 12: Night Audit and Report Management
Overview of night audit functions- obj…
audit
accounting review functions
overview of night audit functions-duties
review the role of the night auditor in accounting for guest…
the review and summarize process of verifying records for cor…
-review of guest charges... *current, complete, correct, confir…
-reporting and data management functions:... *data reports... ~PM…
Overview of night audit functions- obj…
review the role of the night auditor in accounting for guest…
audit
the review and summarize process of verifying records for cor…
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