Audit Enumeration 3 Flashcards Preview

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Flashcards in Audit Enumeration 3 Deck (10)
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1
Q

Steps in using audit risk model

A
  1. Set the desired level of audit risk
  2. Assess the level of inherent risk
  3. Assess tve level of control risk
  4. Determibe the acceptable level of detection risk
  5. Design substantive test
2
Q

Components of internal control

A
  1. Control Environment
  2. Risk assessment
  3. Information and communication system
  4. Control activities
  5. Monitoring
3
Q

Steps in consideration of internal control

A
  1. Obtain understanding of the internal control
  2. dicument the understanding of accounting and internal control systems
  3. Assess the level of control risk
  4. Perform test of controls
4
Q

Types of substantive test

A
  1. analytical procedure

2. Test of details

5
Q

Audit evidence consist of

A
  1. Underlying accounting data

2. Corroborating information

6
Q

Guidelines for the preparation of working papers

A
  1. Heading
  2. Indexing
  3. Cross-indexing/cross referencing
  4. Tick marks
7
Q

Risks in sampling

A
  1. Sampling Risk

2. Non-sampling Risk

8
Q

Types of sampling risk

A
  1. Alpha Risk

2. Beta Risk

9
Q

Types of audit sampling plans

A
  1. Attribute Sampling

2. Variable Sampling

10
Q

Steps in audit sampling

A
  1. Define the objective of the test
  2. Determine the procedures to be performed
  3. Determine the sample size
  4. Select sample
  5. Apply the audit procedures
  6. Evaluate the sample results