Audit Evidence

Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one and likely more for each specific TRAO, BRAO, PDAOs Audit procedures frequently â€Å"cover† more than one audit objective! Select a sample of sales invoices and trace to the shipping document agreeing name and quantity. Preparation Question: What is an audit procedure? B. What sample size to select for a given procedure. C. Which items to select from the population. D. When to perform the procedures (timing). III. Audit Program Preparation Question: What is an audit program? IV. Persuasiveness of evidence Which audit procedures: A. Appropriateness 1. Relevance Example: Trace from sales invoices in the Sales Journal to shipping documents. B. Reliability 1. Independence of provider – 2. Effectiveness of client’s internal control structure (strong vs. weak) 3. Auditor’s direct knowledge 4. Qualifications of provider 5. Objectivity What sample size and which items: C. Sufficient 1. Likelihood of misstatements 2. Quality of internal control When to perform D. Timeliness Other factors: E. Combined effect F. Cost 2 V. Type of Evidence Preparation question: Enter key words that define each of the types of evidence listed. Type Definition Grade 1. Physical examination 2. Confirmation 3. Documentation: External Internal – good Internal – bad 4. Analytical procedures: Tailored Broad 5. Inquiries of the client 6. Recalculation 7. Reperformance 8. Observation In-class exercise: Audit Procedure 1. Examine supporting documents for cash disbursements several days before and after year-end. 2. Examine the acquisitions and cash disbursements journals for the last few days of the current period and first few days of the succeeding period, looking for large or unusual transactions. 3. Trace from the general ledger trail balance and supporting documentation to determine whether accounts payable, related parties, and other related assets and liabilities are properly included on the financial statements. 4. For liabilities that are payable in a foreign currency, determine the exchange rate and check calculations. 5. Discuss with the bookkeeper whether any amounts included on the accounts payable list are due to related parties, debit balances, or notes payable. 6. Obtain vendors’ statements from the controller and reconcile to the listing of accounts payable. 7. Obtain vendors’ statements directly from vendors and reconcile to the listing of account payable. 8. Obtain a list of accounts payable. Re-add and compare with the general ledger. Type of Evidence BRAOs 3 Example of writing/creating audit procedures: Situation: The following depicts the document flow for sales for a typical company. Customer/ Sales Order Bill of Lading Sales Invoice Sales Journal General Ledger Financial Statements General Objective TRAO – Occurrence Specific Objective Audit Procedures TRAO – Completeness See Table 7-6 (p. 187) for good â€Å"buzz† words to use when constructing an audit procedure.

Fractal Geometry Essay Example | Topics and Well Written Essays - 500 words

Fractal Geometry - Essay Example In colloquial speech fractal is a shape which is self-similar or recursively constructed. It means that such shape is similar at all levels of magnification and therefore it is sometimes called "infinitely complex". In the sphere of mathematic the word "fractal" means geometric object "that satisfies a specific technical condition, namely having a Hausdoff dimension greater than its topological dimension". (26) The simplest fractal is known to be Cantor Bar Set which was called after German famous mathematician. It is necessary to admit that fractals refer not only to the realm of geometry and mathematics. They can be found everywhere in natural world. Self-similarity (recursive nature) means that fractals are constructed by iteration and they are made up of the smaller parts (copies) of themselves. The examples of self-similarity are Sierpinski Gasket, the Mandelbrot Set, Self-affine fractals, etc. it must be admitted that fractals are not all self-similar objects. Scientists found out three main types of self-similarity: Exact self-similarity means that fractals are completely identical at all levels of magnification. It is the strongest type of self-similarity, because fractals bear exact and complete self-similarity. Quasi-self similarity is a loose form of self-similarity. It means that fractals are approximately identical, but not completely.

Critical Article Review Example | Topics and Well Written Essays - 1750 words

Critical Review - Article Example It is essential therefore for a financially responsible college or university to have a balanced budget within which expenditures remain contained in the available revenues available. A significant reduction in the available net assets of such an institution thus becomes a cause of concern and might signify financial instability. This paper summarizes the ideas expressed in an article done by Dr. Houston Davis. It focuses majorly on higher education, accounting and how technology has affected budgeting in these institutions. Biography of the author Dr. Houston Davis, a native of Clarksville was recently named as the university system of Georgia’s new chief academic officer and executive vice chancellor. Over the years Dr. Houston has been identified for his valuable experience combined with his fine ability in providing leadership in pertinence to the system’s core academic mission purposing to create a twenty first century educational model. He holds a PhD from Vanderb ilt University, Nashville; a Master’s in education from Tennessee state university and a bachelor’s in political science from the University of Memphis. He is and has been continuously involved in writing and research projects in areas of governance, higher education access, accountability and fund management in higher education and economic development. He serves on several national and regional advisory groups in higher education policies academic preparation, accountability and degree completion. Dr. Houston Davis has served in the educational sector for quite some time. In (2001-2005) he worked in the field of academic leadership for Austin Peay State University in Clarksville. In addition to these professional duties he served in the role of director for the National Educational Needs Index between 2004 and 2011. This initiative was aimed at measuring educational, social, economic and intense population pressure among the 50 states which affect policy and planning in national, regional and local levels. Following this until 2007, he worked in the same field serving as associate vice chancellor for Academic affairs for the Tennessee Board of Regents. He had also worked previously worked in the Tennessee higher education commission in the areas of fiscal and academic affairs between 1997 and 2001. It is recorded that he worked as a regional student recruitment and advancement representative in the University of Memphis. (1995-1997) Summary of the article Accounting With reference to a 1996-1997 data from the national center for education statistics, net revenues in public institutions have their source in four main channels; tuition and fees (19%), state funds (36%), sales and services (22%) and federal funds (11%). Private institutions on the other hand receive their revenues from the same categories though in different degrees; tuition and fees (43%). State funds (2%), sales and services (21%) and federal funds (14%). Although a significant amount does come from the government in public institutions, both the public and private sector have increased their reliance upon revenues from tuition and fees for their improvement funding (National Center for Education Statistics, 2000). With expenditures majorly being