Purchasing department Approve purchase orders Negotiating terms with vendors Receiving department Inspection of goods upon receipt Voucher department Matching the vendor's invoice with -the relating report -purchaase requisition -purchase order Indicating the affected accounts on the vouchers The vouchers payable clerk (1) matches purchase orders, vendors’ invoices, and receiving reports; (2) te..
CFO가 하는 일 Signing Cash disbursement Asset Custody function Canceling the supporting documentation -여기서 Documntation은 consists of the followings. a payment voucher, requisition, purchase order, reeiving report, vendor invoice Control Mailing of the sighned checks and remittane advices Accounting Department Bank reconciliation Recording function
The components, principles and controls that are ■ "Present": exists in ■ "Functioning": continue to operate
언제 수행해? Substantive Test만으로는 불충분할때 수행한다. - When it's not possible to obtain sufficient appropriate audit evidence. 어울리는 Sampling? Attribute Sampling 오류 in aspect of sampling risk of Test of Control Underreliance Overreliance
RMM = Control risk + Internal risk Control risk and inherent risk are the components of the risk of material misstatement (RMM). Detection risk The only risk the auditor directly controls is detection risk. The auditor can achieve the desired audit risk based on the assessed RMMs and the acceptable level of detection risk. Detection risk has an inverse relationship with the RMMs.
Non-Financial Data is Also Used. Although analytical procedures used in planning the audit often use only financial data, sometimes relevant nonfinancial information is considered as well. For example, number of employees, square footage of selling space, volume of goods produced, and similar information may contribute to accomplishing the purpose of the procedures. Analytical Procedures of Risk..
What is Substantive Procedures? Substantive procedures are designed to detect material misstatements at the assertion level. Analytic Procedure 와의 차이점은? Test of detail도 Analytical Procedure이긴 함. 근데 Tests of balances and transactions (tests of details) are not analytical procedures. SubstantiveTest = Test of Detail 의 예시 Reconciling Recalculating Confirmation 어울리는 Sampling? Variable Sampling
What is TEST OF CONTROL? ■ Test of Control =Testing Controls = To test the effectiveness(not efficiency) of controls :Which means = observation, inquiry, inspection, recalcualtion, reperformanc of a control. ■ Test of Controls are furter audit procedures. Tests of controls are designed to evaluate the operating effectiveness of controls. -Thus, they are further audit procedures. -Further audit p..