Presentation is loading. Please wait.

Presentation is loading. Please wait.

Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.

Published byArthur Wade Modified over 9 years ago

Similar presentations

Presentation on theme: "Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model."— Presentation transcript:

1 Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model in conducting the audit. LO3 Explain how auditors assess the auditee’s business risk through strategic analysis and business process analysis. LO4 Outline the relationships among the business processes and accounting processes or cycles that comprise an organization’s information system and management’s general purpose financial statements. 1

2 Accounting Processes and the Financial Statements There are two important points to remember about client financial statements:  Management is responsible for preparing them, and they contain management’s assertions about economic actions and events.  The financial statement numbers are produced by the company's accounting system and are summarized on the trial balance. LO4 2

3 Management’s Financial Statements To simplify the audit plan, auditors typically group the accounts into several accounting processes. (1) revenues and collection (2) acquisition and expenditure (3) production and conversion (4) finance and investment The purpose of using business processes is to group together related accounts by transactions that normally affect them. LO4 3

4 Trial Balance LO4 4

Download ppt "Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model."

Similar presentations

AUDITING : AN OVERVIEW. Auditing defined It is a critical and systematic examination or review of accounting reports, documents, records, procedures and.

AUDITING : AN OVERVIEW. Auditing defined It is a critical and systematic examination or review of accounting reports, documents, records, procedures and.
Learning Objectives LO4 Describe the typical substantive procedures used to address the assessed risk of material misstatement in the main account balances.

Learning Objectives LO4 Describe the typical substantive procedures used to address the assessed risk of material misstatement in the main account balances.
Analyzing and Recording Transactions Last Revised: 3/1/2011

Analyzing and Recording Transactions Last Revised: 3/1/2011
Financial Accounting Review McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.

Financial Accounting Review McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Learning Objectives LO1 Explain the importance of auditing. LO2 Distinguish auditing from accounting. LO3 Explain the role of auditing in information risk.

Learning Objectives LO1 Explain the importance of auditing. LO2 Distinguish auditing from accounting. LO3 Explain the role of auditing in information risk.
Presented by, Stephen Mann, CPA/ABV. Accountants Report Balance Sheet Profit and Loss or Income Statement Statements of Cash Flows Notes to Financial.

Presented by, Stephen Mann, CPA/ABV. Accountants Report Balance Sheet Profit and Loss or Income Statement Statements of Cash Flows Notes to Financial.
Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.

Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.
Learning Objectives LO1 Describe the balance sheet account groups that the major revenue and expense accounts are associated with, as well as the substantive.

Learning Objectives LO1 Describe the balance sheet account groups that the major revenue and expense accounts are associated with, as well as the substantive.
Learning Objectives LO1 Explain the key risks of misstatement in production and payroll processes. LO2 Outline the production process: typical transactions,

Learning Objectives LO1 Explain the key risks of misstatement in production and payroll processes. LO2 Outline the production process: typical transactions,
Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.

Learning Objectives LO1 Describe the conceptual audit risk model and its components. LO2 Explain the usefulness and limitations of the audit risk model.
MANAGEMENT ASSERTIONS Audit relationship: Management asserts, CPA attests. To attest to what management says, the auditor has to know what was said. Anytime,

MANAGEMENT ASSERTIONS Audit relationship: Management asserts, CPA attests. To attest to what management says, the auditor has to know what was said. Anytime,
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-1 Chapter 7 CHAPTER 7 THE EFFECT OF INFORMATION TECHNOLOGY ON THE AUDIT.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-1 Chapter 7 CHAPTER 7 THE EFFECT OF INFORMATION TECHNOLOGY ON THE AUDIT.
© 2004 The McGraw-Hill Companies McGraw-Hill/Irwin 1-1 1. Name of entity 2. Title of statement 3. Specific date 4. Unit of measure The Balance Sheet reports.

© 2004 The McGraw-Hill Companies McGraw-Hill/Irwin Name of entity 2. Title of statement 3. Specific date 4. Unit of measure The Balance Sheet reports.
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 16-1.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved
Internal Control Pertemuan 05 s.d 06 Matakuliah: F0712 / Lab Sistem Informasi Akuntansi Tahun: 2007.

Internal Control Pertemuan 05 s.d 06 Matakuliah: F0712 / Lab Sistem Informasi Akuntansi Tahun: 2007.
Managing Finance and Budgets Seminar 7. Follow-up Activities  Preparation: read Chapter 4 (Both editions),  Describe key concepts: Characteristics of.

Managing Finance and Budgets Seminar 7. Follow-up Activities  Preparation: read Chapter 4 (Both editions),  Describe key concepts: Characteristics of.
Auditing 81.3550 Audit Planning and the Audit Program Chapter 10 Audit Planning and the Audit Program Chapter 10.

Auditing Audit Planning and the Audit Program Chapter 10 Audit Planning and the Audit Program Chapter 10.
1 - 1 The Demand for Audit and Other Assurance Services Chapter 1 Highlights.

1 - 1 The Demand for Audit and Other Assurance Services Chapter 1 Highlights.
Chapter 4 IDENTIFYING RISKS AND CONTROLS IN BUSINESS PROCESSES.

Chapter 4 IDENTIFYING RISKS AND CONTROLS IN BUSINESS PROCESSES.
Learning Objectives LO1 Outline six general audit techniques for gathering evidence. LO2 Identify the procedures and sources of information auditors can.

Learning Objectives LO1 Outline six general audit techniques for gathering evidence. LO2 Identify the procedures and sources of information auditors can.

Similar presentations

Ads by Google