auditing procedures

observation

when the auditor looks at a process or procedure performed by others

reperformance

when the auditor independently performs procedures or controls originally as an internal control

inquiry

requesting information from internal and external knowledgeable parties

walk-through

questioning an entity’s personnel about their understanding of what is required by the entity’s prescribed procedures and controls at the point where important processing procedures occur

examination/inspection

inspecting or examining records,, documents, or tangible assets

reconciliation

substantiates the existence and valuation of accounts ; involves comparing financial amounts from 2 independent sources for agreement

cutoff review

analyzes transactions immediately before and after year end

analytical procedures

evaluations of financial information made by a study of meaningful relationships among data; to help highlight unusual fluctuations

vouching

examining support for what has been recorded (f/s → supporting documents)

existence/occurence

what assertion does vouching typically relate to

tracing

examining support for what has been recorded (supporting documents → f/s)

completeness

what assertion does tracing typically relate to

confirmation

inquiry involving obtaining representations from independent external 3rd parties

accounts receivable

when testing what account is the use of 3rd party confirmations required

control environment, risk assessment, information and communication, monitoring activities, existing control activities

what are the 5 components of internal control

CRIME

what is the mnemonic device for the 5 components of internal control

EBOCA

what is the mnemonic device for the 5 things related to the control environment

SOD

what is the the mnemonic device for the 3 things related to monitoring activities

SAFR

what is the mnemonic device for the 4 things related to risk assessment

OIE

what is the mnemonic device for the 3 things related to information and communication

CATP

what is the mnemonic device for the 4 things related to the existing control activities

ethics and integrity commitment, board independence and oversight, organizational structure, commitment to competence, accountability

what are the 5 things related to the control environment

separate and or ongoing evaluations, deficiencies communicated

what are the three things related to monitoring activities

specify objectives assess and identify changes, fraud potential considered, risks identified and analyzed

what are the four things related to risk assessment

obtain and use information, internally communicate information, external communication with parties

what are the three things related to information and communication

control activities selected and developed, technology controls selected and developed, policies and procedures deployed

what are the three/four things related to the existing control activities

internal audit

who often completes the monitoring