ACCT 3222 - Wiley - LSU - Ch 9 Well Arranged

ACCT 3222 - Wiley - LSU - Ch 9 Well Arranged Substantive procedures -ANS-audit procedures designed to detect material misstatements at the assertion level and to gather evidence to support management assertions Some risks impact at the F/S level -ANS-Management pressure to not violate debt covenants ex. Some risks impact at the assertion level -ANS-(transactions/accounts) Auditor's response to risk impact at the F/S level -ANS-- Make changes to the NET (nature, extent, timing), as needed - More elements of unpredictability - More experienced staff on higher risk areas - More supervision of audit work Auditor's response to risk impact at the assertion level -ANS-2 categories of procedures: substantive analytical procedures (A) and tests of details (FIVE CROTS) Substantive analytical procedures (A) -ANS-Trend analysis Ratio analysis Optional in risk response phase Tests of Details -ANS-FIVE CROTS Footing, cross footing, recalculating Inquiry Vouching Examination/inspection Confirmation Reperformance Observation