1. 13 OVERALL AUDIT PLAN AND AUDIT PROGRAM HOW MUCH AND WHAT KIND
OF TESTING WILL GET
THE JOB DONE?

2. TYPES OF TESTS Procedures to obtain an
understanding of internal control
Test of controls
Substantive tests of transactions
Analytical procedures
Tests of details of balances

3. Types of Tests and the Audit Risk Model
Figure
Types of Tests and the Audit Risk Model
AAR
= PDR
IR X CR
Audit Risk
Model
Procedures
to obtain an
understanding of
internal control
Tests of
controls
Substantive
tests of
transactions
Analytical
procedures
Tests of
details of
balances
Sufficient
competent
evidence
per GAAS + + + + =
Types
of Audit Tests
DPT’s

4. Relationship between Types of Tests and Evidence
TABLE
Relationship between Types of Tests and Evidence

5. Variations in Evidence Mix
TABLE
Variations in Evidence Mix
E = Extensive amount of testing; M= medium amount of testing;
S = small amount of testing; N = no testing.

6. Role of All Audit Tests in the Audit of the Sales and Collection Cycle
FIGURE 12 -6
Role of All Audit Tests in the Audit of the Sales and Collection Cycle

7. FIGURE
12 - 7
Audit Assurance from Substantive Tests and Tests of Controls
at Different Levels of Internal Control Effectiveness

8. Summary of the Audit Process
FIGURE
Summary of the
Audit Process

9. FIGURE 12 - 8 Methodology for Designing Tests of Controls and
Substantive Tests of
Transactions

10. Balances-Accounts Receivable
FIGURE
Methodology for
Designing Tests of
Details of
Balances-Accounts Receivable

11. Approach to Designing Tests of Details of Balances
Figure
Approach to Designing Tests of Details of Balances

12. Summary of the Audit Process
Phase I: Plan and Design an Audit Approach
Phase II: Perform Tests of Controls and
Substantive Tests of Transactions
Phase III: Perform Analytical Procedures and
Tests of Details of balances
Phase IV: Complete the Audit and Issue an
Audit Report

13. Review for Contingent Liabilities
Review for Subsequent Events
Accumulate Final Evidence
Issue Audit Report
Communicate with Audit
Committee and Management

14. ESSENTIAL TERMS Substantive tests Analytical procedures
Evidence mix
Phases of the audit process
Procedures to obtain an
understanding of
internal control
Substantive tests
Substantive tests of
transactions
Tests of controls
Tests of details of balance
Types of tests