Section B Handout

approves all standards for issuers

SEC

provides guidance for assurance and advisory engagements

ASEC

responsible for setting standards for the audits of issuers

PCAOB

audit engagements are subject peer review evaluations

AICPA

issue pronouncements in connection with the unaudited financial statements or other financial information of nonpublic entities

ARSC

responsible for setting audit standards for non-issuers

ASB

responsible for setting ethical standards for registered public accounting firms

PCAOB

oversees the work of the ASEC, ARSC, and ASB

AICPA

audit engagement subject to quality reviews referred to as inspections

PCAOB

issue the statements on quality control standards (SQCSs)

ASB

quantity and price totals for POs have been recorded at amounts identical to source documents

management assertion - valuation and allocation

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transaction cycle - acquisition and disbursement

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audit objective - transaction

all long-term debt that should have been recorded, has been recorded

management assertion - completeness

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transaction cycle - finance and investment

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audit objective - account balance

statement that inventoried costs include appropriate amounts that are attributable and directly traceable to the inventory

management assertion - presentation and disclosure

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transaction cycle - production

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audit objective - presentation and disclosure

each web, retail, and catalog sale is separately compiled and accounted for in the accounting system

management assertion - presentation and disclosure

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transaction cycle - revenue and cash collection

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audit objective - transaction

amounts recorded as ending inventory represent actual tangible items

management assertion - existence or occurence

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transaction cycle - production

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audit objective - account balance

calculations included statements regarding executive officer stock compensation plans are precise

management assertion - valuation and allocation

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transaction cycle - payroll and personnel

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audit objective - presentation and disclosure

intangible assets purchased during the year are recorded in the firm’s name

management assertion - rights and obligations

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transaction cycle - acquisition and disbursement

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audit objective - account balance

declaration that all amounts representing operating leases are properly reported

management assertion - completeness

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transaction cycle - finance and investment

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audit objective - presentation and disclosure

amounts recorded as sales represent valid economic exchanges with customers

management assertion - existence or occurrence

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transaction cycle - revenue and cash collection

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audit objective - transaction

disclosures related to derivative transactions are at the correct amount

management assertion - valuation and allocation

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transaction cycle - finance and investment

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audit objective - presentation and disclosure

investments are classified by portfolio and appropriately recorded and displayed in the financial statements

management assertion - presentation and disclosure

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transaction cycle - finance and investment

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audit objective - presentation and disclosure

all cash sales have been recorded

management assertion - completeness

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transaction cycle - revenue and cash collection

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audit objective - transaction

there are no liens or other restrictions on inventory

management assertion - rights and obligations

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transaction cycle - production

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audit objective - account balance

payroll amounts are only recorded for work by existing employees that was actually performed

management assertion - existence or occurrence

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transaction cycle - payroll and personnel

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audit objective - transaction

accounts receivable represent amounts earned and realizable to the entity

management assertion - rights and obligations

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transaction cycle - revenue and cash collection

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audit objective - account balance