Why do we set materiality during planning?
Give this one a try later!
auditing standards require the auditor to establish a materiality amount for
the financial statements as a whole
What are the main causes of RMM?
,Give this one a try later!
- errors (unintentional)
- fraud (intentional)
* like misappropriation of assets (defalcation) and financial reporting fraud
tests to detect errors or fraud in individual transactions
Give this one a try later!
substantive tests of transactions
affiliates of the entity, owners of the company, and family
Give this one a try later!
related parties
audit procedures performed to test material misstatements in an account balance or
disclosure component of the financial statements
Give this one a try later!
substantive procedures
, An independent auditor finds that Holdaway Corporation occupies office space, at no
charge, in an office building owned by a shareholder. This finding likely indicates the
existence of
Give this one a try later!
related party transaction
What are management's assertions for account balances?
Give this one a try later!
- existence = assets, liabilities, and interests exist
- completeness = all assets, liabilities, and interests that should have been
recorded were
- rights and obligations = the entity holds or controls the rights to assets,
and liabilities are the obligations of the entity
- valuation and allocation = assets, liabilities and interests are included in
the FS at the appropriate amounts
the contract between the client and the auditor that reduces the risk that either party
may misinterpret what is expected or required of either party
Give this one a try later!
engagement letter
Give this one a try later!
auditing standards require the auditor to establish a materiality amount for
the financial statements as a whole
What are the main causes of RMM?
,Give this one a try later!
- errors (unintentional)
- fraud (intentional)
* like misappropriation of assets (defalcation) and financial reporting fraud
tests to detect errors or fraud in individual transactions
Give this one a try later!
substantive tests of transactions
affiliates of the entity, owners of the company, and family
Give this one a try later!
related parties
audit procedures performed to test material misstatements in an account balance or
disclosure component of the financial statements
Give this one a try later!
substantive procedures
, An independent auditor finds that Holdaway Corporation occupies office space, at no
charge, in an office building owned by a shareholder. This finding likely indicates the
existence of
Give this one a try later!
related party transaction
What are management's assertions for account balances?
Give this one a try later!
- existence = assets, liabilities, and interests exist
- completeness = all assets, liabilities, and interests that should have been
recorded were
- rights and obligations = the entity holds or controls the rights to assets,
and liabilities are the obligations of the entity
- valuation and allocation = assets, liabilities and interests are included in
the FS at the appropriate amounts
the contract between the client and the auditor that reduces the risk that either party
may misinterpret what is expected or required of either party
Give this one a try later!
engagement letter
