ACC411-Chapter 7
Read- An examination of written information to determine facts pertinent to the audit.
Documentation- The auditor's inspection of a client's documents and records to substantiate the information that is, or should be, included in the financial statements.
Scan- A less-detailed examination of a document or record to determine whether there is something unusual warranting further investigation.
Analytical Procedures - Use comparisons and relationships to assess whether account balances or other data appear reasonable compared to the auditor's expectations.
Compute- A calculation done by the auditor independent of the client.
Analytical Procedures- Use comparisons and relationships to assess whether account balances or other data appear reasonable compared to the auditor's expectations.
Examine- A reasonably detailed study of a document or record to determine specific facts about it.
Documentation - The auditor's inspection of a client's documents and records to substantiate the information that is, or should be, included in the financial statements.
Compare- A comparison of information in two different locations. The instruction should state which information is being compared in as much detail as practical.
Documentation- The auditor's inspection of a client's documents and records to substantiate the information that is, or should be, included in the financial statements.
Vouch- The use of documents to verify recorded transactions or amounts.
Documentation- The auditor's inspection of a client's documents and records to substantiate the information that is, or should be, included in the financial statements.
Trace- An instruction normally associated with documentation or reperformance. The instruction should state what the auditor is tracing and where it is being traced from and to. Often, an audit procedure that includes the term, trace, will also include a section instruction, such as compare or recalculate.
Documentation- The auditor's inspection of a client's documents and records to substantiate the information that is, or should be, included in the financial statements. OR Reperformance- The auditor's independent test of client accounting procedures or controls that were originally done as part of the entity's accounting and internal control system.
Inquire- The act of inquiry should be associated with the type of evidence defined as Inquiry.
Inquiries of Client- The obtaining of written or oral information from the client in response to questions from the auditor.
Observe- The act of observation should be associated with the type of evidence defined as observation.
Observation- The use of the senses to assess client activities.
Count- A determination of assets on hand at a given time. This term should be associated ONLY with the type of evidence defined as PHYSICAL EXAMINATION.
Physical Examination- The inspection or count by the auditor of a tangible asset.
Foot- Addition of a column of numbers to determine whether the total is the same as the client's.
Recalculation- Involves rechecking a sample of calculations made by the client.
Recompute- A calculation done to determine wether the client's calculation is correct.
Recalculation- Involves rechecking a sample of calculations made by the client.
