The form confirms the followings. account number/description, balance, due date, interest rate, date through which interest is paid, and a description of collateral. The principal amount paid on a direct liability is not listed on the Standard Form to Confirm Account Balance Information with Financial Institutions.
What an auditor has to do? ■For Unsupported entries in the ledger, ○Tracking Directions: A sample of entries in the ledger → Source Document ■For Unrecorded entries in the ledger, Select and trace Original source documents.
Which would Yield Highest level of evidence = Susceptible to Prediction by the auditor The relationships of payroll expense transactions tend to be more predictable than those for such balance sheet accounts as accounts payable and accounts receivable. Relationships involving income statement accounts tend to be more predictable than relationships involving only balance sheet accounts because in..
예시 The vouchers have a recorded amount of $300,000, and 1,000 items are to be sampled, so every 300th dollar will be chosen. Given a random start of $50, the vouchers containing the 50th, 350th, 650th, and 950th dollars will be selected. The cumulative amount of the first eight vouchers is $1,030. Accordingly, voucher 8 should be the fourth voucher audited because it contains the 950th dollar.
What is Parallel Simulation? ■ Parallel simulation uses a controlled program to reprocess sets of client transactions and compares those results with those of the client. ■ Parallel simulation is a test of the controls in a client’s application program. -근데 꼭 Client's Application Program만으로 해야하는 건 아님. An auditor-developed program(not the client’s program) is used to process actual client data an..
What is MUS? Monetary-unit sampling(MUS)= also known as Probability-proportional-to-size sampling -MUS is one technique whereby the auditor can measure and control the risks associated with observing less than 100% of the population. -The auditor can quantify and measure the risk of accepting a client’s recorded amount as fair when it is materially misstated. -The auditor controls the risk of in..