Professional Documents
Culture Documents
Audit Evidence and Audit Procedures: Kuliah 7
Audit Evidence and Audit Procedures: Kuliah 7
Risk
Phase I Assessment
Phase II Risk
Response
Reporting
Phase III
Response
Reporting
procedures obtained
Risk
Risk
Perform risk Perform Prepare the
assessment further audit auditor’s
procedures procedures report
What events could occur Did the events identied What audit opinion, based
that would cause a occur and result in a on the evidence obtained,
material misstatement in material misstatement in is appropriate on the
the financial statements? the financial statements? financial statements?
assurance
Uncertainty
reasonable (audit risk)
assurance
inspection Tangible
Documents assets
VOUCHING EXISTENCE OR
(test for overstatement) OCCURENCE
Source Ledger
Journal
Documents
TRACING
(test for understatement)
COMPLETENESS
MOST RELIABLE
EXAMPLES
External documents sent Confirmation
directly to the auditor Cut-off bank statements
External documents held Vendor.s invoices
by client Regular bank statements
Internal documents Deposit slips
circulated externally Copy of delivery slip
Internal documents Duplicate sales invoice
not circulated externally Purchase requisition
LEAST RELIABLE
Audit procedures
Appropriate
& timing
Staffing
Sample size
Sufficient
& items to select
Audit Procedures
Sample size
Items to select
Timing
Staffing
AUDIT
PROGRAM
Analytical
count current profit Existence,
(compute, margin & compare with Analytical Completeness,
compare, prior years Valuation
scan)
Appropriateness Sufficiency
Example :
Assertion/ Relevan
Audit Objective Procedure
Existence/Occurrence Vouching
Completeness Tracing
Materiality of accounts
Additional purposes :
• Assist in planning and performing the audit.
• Assist in supervising the audit work
• Accountability for its work.
• Retaining a record of matters of continuing significance to
future audits.
• Enabling the conduct of quality control reviews and inspections
• Enabling the conduct of external inspections in accordance with
applicable legal, regulatory or other requirements.
Audit program
General information
Supporting schedules
Analysis
Trial balance or list
Reconciliation of amounts
Tests of reasonableness
Summary of procedures
Examination of supporting documents
Informational
Outside documentation