Balance sheet and income statement, Auditing

OBJECTIVES

  1. To apply certain steps in the audit planning process, with emphasis on risk identification and audit response (strategy) thereto.
  2. To provide you with the experience of working as a member of an audit team.
  3. To acquaint you with the annual report filed on Form 10-K of a publicly-held company audited by a public accounting firm. Interim financial statements are filed quarterly on Form 10Q.

Part 1

A preliminary analytical review of the company's most recent balance sheet and income statement using one or more prior years as a basis of comparison. Focus on these factors:

-     Current year (i.e., the year you are auditing) financial results.

-     The company's financial viability and earnings trend.

-     Any unusual fluctuation of current year amounts from expected amounts.

-     Significant and/or unusual transactions in the current year.

-     Account balances significantly influenced by management estimates or judgment.

-   Selection of accounting principles and practices by management in those instances where alternative principles are acceptable.

-     Critical cut-offs and accruals.

Part 2

For each material balance sheet and income statement line item, state your assessment of the level of inherent risk. You may use subjective terms such as "high," "moderate," or "low;" or alternately you may use percentages.

A convenient way to do this is by using a matrix comprising two columns: (1) balance sheet and income statement line item name, and (2) inherent risk.

Posted Date: 3/7/2013 4:49:56 AM | Location : United States







Related Discussions:- Balance sheet and income statement, Assignment Help, Ask Question on Balance sheet and income statement, Get Answer, Expert's Help, Balance sheet and income statement Discussions

Write discussion on Balance sheet and income statement
Your posts are moderated
Related Questions
Existence - Detailed Audit of Stock In the previous the auditor accepted a director's certificate as to the existence of stocks.  Until some cases specifically in the United S

#Fortex Limited, the meat processing firm, was formed in 1985 from three smaller companies. In 1993, however, after a few years of spectacular growth, the company collapsed. a) S

People do not plan to fail, they fail to plan. Planning is an essential feature of an effective audit. The most effective plan is one that is reduced to writing, outlining the au

types of EDP accounting system and impact of EDP accounting controls

what is the nature and scope of forensic auditing?

What are the are the advantages and disadvantages of auditing an IT firm

am happy to pay someone to do my acc assignment which is more auditing one

Q. If Kiner Company issues 3,000 shares of $5 par value common stock for $70,000, the account a. Paid-in Capital in Excess of Par Value will be credited for $15,000. b. Common Stoc

Audit Sampling ISA 530 Audit Sampling and Other Selective Testing Procedures defines Audit sampling is the application of a compliance or substantive procedure to less than 10

Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in