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
Case Study: You have commenced work as a graduate auditor with a well established audit firm. The firm has a wide client base, which includes some of the largest companies in t

1. Why is studying Auditing different from studying other accounting topics? 2. How might understanding auditing concepts prove useful for consultants, business managers, and other

Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is very excited and has announced that th

Taxation - Audit Process Companies suffer corporation tax. The Companies Act use that corporation tax payable on the profits of any specific year should be matched against tho

It is a compulsory audit Completed by a CA. Finance Audit conduct by the CA to compliance the legal requirements of monitory issues.

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.

Beneficial Ownership or Title In January 1976 the famous case of Aluminium Industries vaassen B V v. Romalpa Aluminium Ltd radically altered the law along with regard to norma

phases of operational auditing report sample or template of companies operational audit report