Contents

Kinh Nghiệm về Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? Chi Tiết

Pro đang tìm kiếm từ khóa Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? được Update vào lúc : 2022-09-23 00:50:22 . Với phương châm chia sẻ Thủ Thuật về trong nội dung bài viết một cách Chi Tiết 2022. Nếu sau khi đọc Post vẫn ko hiểu thì hoàn toàn có thể lại Comments ở cuối bài để Tác giả lý giải và hướng dẫn lại nha.

192

The following auditing standard is not the current version and does not reflect any amendments effective on or after December 31, 2022. The current version of the auditing standards can be found  here.

Nội dung chính

  • Audit Evidence
  • Introduction
  • Sufficient Appropriate Audit Evidence
  • Relevance and Reliability
  • Using Information Produced by the Company
  • Financial Statement Assertions
  • Audit Procedures for Obtaining Audit Evidence
  • Inspection
  • Observation
  • Confirmation
  • Recalculation
  • Reperformance
  • Analytical Procedures
  • Selecting Items for Testing to Obtain Audit Evidence
  • Selecting All Items
  • Selecting Specific Items
  • Audit Sampling
  • Inconsistency in, or Doubts about the Reliability of, Audit Evidence
  • Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included quizlet?
  • Which management assertion addresses whether the components of the financial statements are properly classified described and disclosed?
  • What is completeness assertion?
  • What are the assertions of financial statements?

Audit Evidence

Effective Date: For audits of fiscal years beginning on or after Dec. 15, 2010

Final Rule:
PCAOB Release No. 2010-004

Summary Table of Contents

  • (1 – 2) Introduction
  • (3) Objective
  • (4 – 10) Sufficient Appropriate Audit Evidence
  • (11 – 12) Financial Statement Assertions
  • (13 – 21) Audit Procedures for
    Obtaining Audit Evidence
  • (22 – 28) Selecting Items for Testing to Obtain Audit Evidence
  • (29) Inconsistency in, or Doubts about the Reliability of, Audit Evidence

Introduction

1.     This standard explains what constitutes audit evidence and establishes requirements regarding
designing and performing audit procedures to obtain sufficient appropriate audit evidence.

2.     Audit evidence is all the information, whether obtained from audit procedures or other sources, that is used by the auditor in arriving the conclusions on which the auditor’s opinion is based. Audit evidence consists of both information that supports and corroborates management’s assertions regarding the financial statements or internal control over financial
reporting and information that contradicts such assertions.

Objective

3.     The objective of the auditor is to plan and perform the audit to obtain appropriate audit evidence that is sufficient to tư vấn the opinion expressed in the auditor’s
report.1/ 

Sufficient Appropriate Audit Evidence

4.     The auditor must plan and perform audit procedures to obtain sufficient appropriate audit evidence to provide a
reasonable basis for his or her opinion.

5.     Sufficiency is the measure of the quantity of audit evidence. The quantity of audit evidence needed is affected by the following:

  • Risk of material misstatement (in the audit of financial statements) or the risk associated with the control (in the audit of internal control over financial reporting). As the risk increases, the amount of evidence that the auditor should obtain also increases. For
    example, ordinarily more evidence is needed to respond to significant risks.2/
  • Quality of the audit evidence obtained. As the quality of the evidence increases, the need for additional corroborating evidence decreases. Obtaining more of the same
    type of audit evidence, however, cannot compensate for the poor quality of that evidence.

6.     Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing tư vấn for the conclusions on which the auditor’s opinion is based.

Relevance and Reliability

7.     Relevance. The relevance of
audit evidence refers to its relationship to the assertion or to the objective of the control being tested. The relevance of audit evidence depends on:

  • The design of the audit procedure used to test the assertion or control, in particular whether it is designed to (1) test the assertion or control directly and (2) test for understatement or overstatement; and
  • The timing of the audit procedure used to test the assertion or control.
  • 8.     Reliability.
    The reliability of evidence depends on the nature and source of the evidence and the circumstances under which it is obtained. For example, in general:

    • Evidence obtained from a knowledgeable source that is independent of the company is more reliable than evidence obtained only from internal company sources.
    • The reliability of information generated internally by the company is increased when the company’s controls over that information are effective.
    • Evidence
      obtained directly by the auditor is more reliable than evidence obtained indirectly.
    • Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.

    9.     The auditor is not expected to be an expert in
    document authentication. However, if conditions indicate that a document may not be authentic or that the terms in a document have been modified but that the modifications have not been disclosed to the auditor, the auditor should modify the planned audit procedures or perform additional audit procedures to respond to those conditions and should evaluate the effect, if any, on the other aspects of the audit.

    Using Information Produced by the Company

    10.     When
    using information produced by the company as audit evidence, the auditor should evaluate whether the information is sufficient and appropriate for purposes of the audit by performing procedures to:3/

    • Test the accuracy and completeness of the information,
      or test the controls over the accuracy and completeness of that information; and
    • Evaluate whether the information is sufficiently precise and detailed for purposes of the audit.

    Financial Statement Assertions

    11.     In representing that the financial statements are presented fairly in conformity with the applicable financial reporting framework, management implicitly or explicitly makes
    assertionsregarding the recognition, measurement, presentation, and disclosure of the various elements of financial statements and related disclosures. Those assertions can be classified into the following categories:

    • Existence or occurrence – Assets or liabilities of the company exist a given date, and recorded transactions have occurred during a given period.
    • Completeness – All transactions and accounts that should be presented in the
      financial statements are so included.
    • Valuation or allocation – Asset, liability, equity, revenue, and expense components have been included in the financial statements appropriate amounts.
    • Rights and obligations – The company holds or controls rights to the assets, and liabilities are obligations of the company a given date.
    • Presentation and disclosure – The components of the financial statements are properly classified, described, and
      disclosed.

    12.     The auditor may base his or her work on financial statement assertions that differ from those in this standard if the assertions are sufficient for the auditor to identify the types of potential misstatements and to respond appropriately to the risks of material misstatement in each significant account and disclosure that has a reasonable
    possibility4/ of containing misstatements that would cause the financial statements to be materially misstated, individually or in combination with other
    misstatements.5/

    Audit Procedures for Obtaining Audit Evidence

    13.     Audit procedures can be classified into the following categories:

  • Risk assessment
    procedures,6/ and
  • Further audit
    procedures,7/ which consist of:
    (1)
    Tests of controls, and
    (2)
    Substantive procedures, including tests of details and substantive analytical procedures.
  • 14.     Paragraphs 15-21 of this standard describe specific audit procedures. The purpose of an audit procedure determines whether it is a risk assessment procedure, test of controls, or substantive procedure.

    Inspection

    15.     Inspection involves examining records or documents, whether internal or external, in paper form, electronic form, or other truyền thông, or physically examining an asset.
    Inspection of records and documents provides audit evidence of varying degrees of reliability, depending on their nature and source and, in the case of internal records and documents, on the effectiveness of the controls over their production. An example of inspection used as a test of controls is inspection of records for evidence of authorization.   

    Observation

    16.     Observation consists of looking a process or procedure being performed
    by others, e.g., the auditor’s observation of inventory counting by the company’s personnel or the performance of control activities. Observation can provide audit evidence about the performance of a process or procedure, but the evidence is limited to the point in time which the observation takes place and also is limited by the fact that the act of being observed may affect how the process or procedure is
    performed.8/

    Inquiry

    17.     Inquiry consists of seeking information from knowledgeable persons in financial or nonfinancial roles within the company or outside the company. Inquiry may be performed throughout the audit in
    addition to other audit procedures. Inquiries may range from formal written inquiries to informal oral inquiries. Evaluating responses to inquiries is an integral part of the inquiry process.9/

    Note:   Inquiry of company personnel, by
    itself, does not provide sufficient audit evidence to reduce audit risk to an appropriately low level for a relevant assertion or to tư vấn a conclusion about the effectiveness of a control.

    Confirmation

    18.     A confirmation response represents a particular form of audit evidence obtained by the auditor from a third party in accordance with PCAOB
    standards.10/

    Recalculation

    19.     Recalculation consists of checking the mathematical accuracy of documents or records. Recalculation may be performed manually or electronically. 

    Reperformance

    20.     Reperformance
    involves the independent execution of procedures or controls that were originally performed by company personnel.

    Analytical Procedures

    21.     Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. Analytical procedures also encompass the investigation of significant differences from expected
    amounts.11/

    Selecting Items for Testing to Obtain Audit Evidence

    22.     Designing substantive tests of details and tests of controls includes determining the means of
    selecting items for testing from among the items included in an account or the occurrences of a control. The auditor should determine the means of selecting items for testing to obtain evidence that, in combination with other relevant evidence, is sufficient to meet the objective of the audit procedure. The alternative means of selecting items for testing are:

    • Selecting all items; 
    • Selecting specific items; and
    • Audit sampling.

    23.     The
    particular means or combination of means of selecting items for testing that is appropriate depends on the nature of the audit procedure, the characteristics of the control or the items in the account being tested, and the evidence necessary to meet the objective of the audit procedure. 

    Selecting All Items

    24.     Selecting all items (100 percent examination) refers to testing the entire population of items in an account or the entire population of
    occurrences of a control (or an entire stratum within one of those populations). The following are examples of situations in which 100 percent examination might be applied:

    • The population constitutes a small number of large value items;
    • The audit procedure is designed to respond to a significant risk, and other means of selecting items for testing do not provide sufficient appropriate audit evidence; and
    • The audit procedure can be automated effectively and applied
      to the entire population.

    Selecting Specific Items

    25.     Selecting specific items refers to testing all of the items in a population that have a specified characteristic, such as:

    • Key items. The auditor may decide to select specific items within a population because they are important to accomplishing the objective of the audit procedure or exhibit some other characteristic, e.g., items that are suspicious, unusual, or
      particularly risk-prone or items that have a history of error.
    • All items over a certain amount. The auditor may decide to examine items whose recorded values exceed a certain amount to verify a large proportion of the total amount of the items included in an account.

    26.     The auditor also might select specific items to obtain an understanding about matters such as the nature of the company or the nature of transactions.

    27.     The
    application of audit procedures to items that are selected as described in paragraphs 25-26 of this standard does not constitute audit sampling, and the results of those audit procedures cannot be projected to the entire population.12/

    Audit Sampling

    28.     Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account balance or class of transactions for the purpose of evaluating some characteristic of the balance or class.13/

    Inconsistency in, or Doubts about the Reliability of, Audit Evidence

    29.     If audit evidence obtained from one source is inconsistent with that obtained from another, or if the auditor has doubts about the reliability of information to be used as audit evidence, the auditor should perform the audit procedures necessary to resolve the matter and should determine the effect, if any, on other aspects of the
    audit.

    Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included quizlet?

    Valuation or allocation assertion. Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? a.

    Which management assertion addresses whether the components of the financial statements are properly classified described and disclosed?

    SAS 31 “assertions about presentation and disclosure giảm giá with whether particular components of the financial statements are properly classified, described, and disclosed.” The account balance not only must be properly measured but also adequately described and disclosed.

    What is completeness assertion?

    Completeness Assertion – All transactions that were supposed to be recorded have been recognized in the financial statements. Accuracy Assertion – Transactions have been recorded accurately their appropriate amounts. Cut-off Assertion – Transactions have been recognized in the correct accounting periods.

    What are the assertions of financial statements?

    There are five assertions, including accuracy and valuation, existence, completeness, rights and obligations, and presentation and disclosure.
    Tải thêm tài liệu liên quan đến nội dung bài viết Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included?

    Reply
    2
    0
    Chia sẻ

    Review Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? ?

    You vừa Read nội dung bài viết Với Một số hướng dẫn một cách rõ ràng hơn về Clip Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? tiên tiến và phát triển nhất

    Chia Sẻ Link Cập nhật Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? miễn phí

    You đang tìm một số trong những Chia SẻLink Tải Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? Free.

    Giải đáp vướng mắc về Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included?

    Nếu sau khi đọc nội dung bài viết Which assertion addresses whether all transactions and accounts that should be included in the financial statements are included? vẫn chưa hiểu thì hoàn toàn có thể lại Comment ở cuối bài để Mình lý giải và hướng dẫn lại nha
    #assertion #addresses #transactions #accounts #included #financial #statements #included