Author Archive for: Audit Lesson

I.TRANSACTIONS AND ACCOUNT BALANCE ASSERTION Transactions & Events: (IS) Occurrence Completeness Accuracy Cut-off Classification Account Balances Existence Rights & Obligations

I.AUDIT PROCEDURE Revenue is important to the audit because it’s one of the two major business processes, and purchasing is

I.AUDIT PROCEDURE FOR ACCOUNT PAYABLE ASSERTIONS When testing accounts payable, assertions about purchases and cost of goods sold are also

A number of sample selection methods are available to the auditor. I.Random selection Simple random sampling is a method of

I.AUDIT SAMPLING Definition Audit sampling as the application of audit procedures to less than 100% of the items (in

I.THE CONCEPT OF AUDIT EVIDENCE Audit evidence can be defined in simple terms as any piece of information which assists

A risk assessment is carried out by auditor to identify financial statement areas susceptible to material misstatement and provides a

I. ACCOUNTING DOCUMENT – Material Request – Purchase Request – Quotation – Purchase order – Sale order – Contract with

Audit procedures are carried out by the auditor in order to generate audit evidence. There are a number of audit

Planning an audit involves more than just obtaining business understanding and performing risk assessment. I. PROCESS OF AUDIT PLANNING It