arens edisi 14 chap 13

8/18/2019 Arens edisi 14 chap 13

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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 5 - 5

Overall Audit PlanOverall Audit Plan

and Audit Programand Audit Program

Chapter 13Chapter 13


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 22

Learning Objective 1Learning Objective 1

Use the fve types o audit tests toUse the fve types o audit tests to

determine hether fnancialdetermine hether fnancial

statements are airly stated!statements are airly stated!


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"ypes o "ests "ypes o "ests

#is$ assessment procedures

%urther audit procedures


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%urther Audit Procedures%urther Audit Procedures

and the Audit #is$ &odeland the Audit #is$ &odel

Audit ris$model

%urther audit procedures

Tests of controls

Substantivetests of

transactions

+

AAR

IR × CR= PDR

+Analytical

procedures

Tests of details of

balances

Sucientappropriate

evidence

per GASS

+ =


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#is$ Assessment Procedures#is$ Assessment Procedures

A major part o these procedures aredone to obtain an understanding

o internal control!


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 -

#ole o All Audit "ests in the#ole o All Audit "ests in the

'ales and Collection Cycle'ales and Collection Cycle


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - !!

Learning Objective (Learning Objective (

'elect the appropriate types o audit'elect the appropriate types o audit

tests!tests!


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - ""

#elationship )eteen %urther#elationship )eteen %urther

Audit Procedures and *videnceAudit Procedures and *vidence


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - ##

Audit Assurance at +i,erentAudit Assurance at +i,erent

Levels o -nternal ControlLevels o -nternal Control

*,ectiveness*,ectiveness


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Understand ho inormationUnderstand ho inormation

technology a,ects audit testing!technology a,ects audit testing!


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-mpact o -normation-mpact o -normation

"echnology on Audit "esting "echnology on Audit "esting

Computer5assisted audit techni6ues may beused to test automated controls or data!

#eports produced by -" may be used to testthe e,ectiveness o -" general controls!

Program change controls Access controls


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Understand the concept o evidenceUnderstand the concept o evidence

mi8 and ho it should be varied inmi8 and ho it should be varied in

di,erent circumstances!di,erent circumstances!


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9ariations in *vidence &i89ariations in *vidence &i8


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Learning Objective :Learning Objective :

+esign an audit program!+esign an audit program!


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Audit ProgramAudit Program

Part 1; "ests o controls and substantivetests o transactions

Part (;Analytical procedures

Part 3; "ests o details and balances


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1!1!

&ethodology or +esigning&ethodology or +esigning

Controls and 'ubstantive "estsControls and 'ubstantive "ests

h i i% ' A h + i i


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1"1"

%our5'tep Approach to +esigning%our5'tep Approach to +esigning

Control and 'ubstantive "estsControl and 'ubstantive "ests

y


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 1#1#

yo )alances < Accountso )alances < Accounts

#eceivable#eceivable

y


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yo )alances < Accountso )alances < Accounts

#eceivable#eceivable


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Learning Objective Learning Objective

Compare and contrast transaction5Compare and contrast transaction5

related audit objectives ith balance5related audit objectives ith balance5

related and presentation andrelated and presentation anddisclosure5related audit objectives!disclosure5related audit objectives!

# l ti hi " ti# l ti hi " ti


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#elationship o "ransaction5#elationship o "ransaction5

related Audit Objectives torelated Audit Objectives to

)alance5related Audit Objectives)alance5related Audit ObjectivesTransaction-relatedAuditObjective

Balance-relatedAuditObjective

Nature of Relationsi

Occurrence!o"pletenessAccuracy#ostin$ and

su""ari%ation!lassi&cationTi"in$

'(istence or co"pleteness!o"pleteness or e(istenceAccuracy)etail tie-in

!lassi&cation!uto* Reali%able valueRi$ts and obli$ation

)irect)irect)irect)irect

)irect)irectNoneNone


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Phases o the Audit ProcessPhases o the Audit Process

-! Plan and design an audit approach!

--! Perorm tests o controls and

substantive tests o transactions!---! Perorm analytical procedures and

tests o details o balances!

-9! Complete the audit and issue anaudit report!


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Audit ObjectivesAudit Objectives

"ransaction5related

)alance5related

Presentation and disclosure5related


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"ypes o "ests "ypes o "ests

#is$ assessment procedures

"ests o controls

'ubstantive tests o transactions

Analytical procedures

"ests o details o balances


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2!2!

*vidence +ecisions*vidence +ecisions

Audit procedures

'ample si>e

-tems to select

"iming


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2"2"

Reperfor"ance

)ocu"entation

n,uiries of !lient#ysical'vidence

Analytical#rocedures

Observation

Audit

'vidence

"ypes o *vidence "ypes o *vidence

Recalculation!on&r"ation


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©2012 Prentice Hall Business Publishing,©2012 Prentice Hall Business Publishing, Auditing 14/e, Auditing 14/e, Arens/Elder/Beasley Arens/Elder/Beasley 13 -13 - 2#2#

Learning Objective ?Learning Objective ?

-ntegrate the our phases o the audit-ntegrate the our phases o the audit

process!process!


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'ummary o the Audit'ummary o the Audit

ProcessProcess

#ase #lan and desi$n

an audit approac

#ase

#erfor" tests of

controls andsubstantive testsof transactions

#ase

#erfor" analyticaprocedures andtests of details

of balances

#ase !o"plete te

audit and issuean audit report


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Process; Phase -Process; Phase -

Accept client and perorm initial planning

Understand the client@s business and industry

Assess client@s business ris$

Perorm preliminary analytical procedures


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Process; Phase -Process; Phase -

'et materiality and assess acceptableaudit ris$ and inherent ris$

Understand internal control and assess control ris$

ather inormation to assess raud ris$s

+evelop overall audit plan and audit program


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Process; Phase ---Process; Phase ---

Perorm analytical procedures

Perorm tests o $ey itemsPerorm additional tests

o details o balances

Lo &ediumEigh or

un$non


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Process; Phase -9Process; Phase -9

Perorm additional tests orpresentation and disclosure

Accumulate fnal evidence

*valuate results

-ssue audit report

Communicate ith auditcommittee and management


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©2012 P ti H ll B i P bli hi©2012 P ti H ll B i P bli hi A diti 14/A diti 14/ A /Eld /B lA /Eld /B l 5 5

*nd o Chapter 13*nd o Chapter 13

arens edisi 14 chap 13

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