[jeff]

Post by Another71.

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[salring]

When testing controls when do you use each of the following, give examples.:-

1. Observation

2. Inspection

3. Re-performance

4. Inquiry

5. Recalculation

[Anonymous]

Here is an interesting article for those of you studying AUD (disclaimer: some of the language is R rated so don't read it if dirty words offend you).

GoingConcern.com

[howmany74s]

@salring, your question is just too general..Procedures really depend on the type of control. In example, if the control is about someone matching bill of lading with invoices and stamping each bill with an ‘approved' stamp, then you can't just inquire about it, you might need to sample a number of bills of lading, and inspect the details.

[Martin]

When is an auditor required to obtain an understanding of the operating effectiveness of internal controls?

I know that if you are relying on IC then you have obtain an understanding of the operating effectiveness, but I thought that on an integrated Audit you also had to test for effectiveness?

Through God all things can happen!

“You never fail until you stop trying.”
― Albert Einstein
When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
“Just keep swimming, just keep swimming.”

FAR= 72-84
Audit= 73-82
BEC= 74-75
Reg=77

[Anonymous]

I don't understand, I tried but couldn't.

Using computers in auditing may affect the methods used to review the work of staff assistants because:

A. the audit fieldwork standards for supervision may differ.

B. documenting the supervisory review may require assistance of consulting services personnel.

C. supervisory personnel may not have an understanding of the capabilities and limitations of computers.

Correct D. workpaper documentation may not contain readily observable details of calculations.

[jstay]

anjanja,

that is a weird question..but I feel like C can automatically be eliminated–supervisory should know the computers. Same with A–audit fieldwork standards are the same, arent they? (not sure on that one).

With D, calculations may not be observable right away- think of an excel sheet you only see the number until clicking the cell to see where the number came from

idk though, just trying to help

the questions your posting, are those from ninja?

[Anonymous]

But can you have readily observable details of calculations when documentation is prepared manually? I have never seen how it's done

It feels like sometimes it comes down to just choosing the less idiotic answer.

Yes, ninja

[jstay]

yeah it sometimes comes down to that. good point about the manual. but i guess with manual you can usually pencil marks. honestly i have no idea. how are you doing in ninja? im going to start implementing ninja next week. exam is scheduled for 1/15..closest day to 1/12 with a morning appointment

[Anonymous]

I don't think I am doing that great, 73% average, 67% trending so far

[jstay]

thats really not that bad! idk about AUD but for BEC i rarely trended above a 70 and was averaged at 67 going into the exam and i passed.

[Anonymous]

I was getting mcq wrong every time because according to Roger risk assessment procedures include:

analytical procedures, inquiries, inspection, and observation.

Tracing sounds more like test of controls (reperformance)

There is a reference to AU-C 610.13, there is a word “tracing” in that document, but not in context of obtaining evidence about the design and implementation.

Which of the following is not used to obtain evidence about the design and implementation of relevant controls?

A. Inquiry of entity personnel

B. Inspection of documents and reports

Incorrect C. Tracing transactions through the information system relevant to financial reporting

Correct D. All of the answer choices are used to obtain this evidence.

[mtwst113]

If management states that certain types of transactions are subject to specific controls, tracing the transaction allows you verify if those controls were actually performed on the transaction. This is talking more about the implementation aspect rather than the design aspect, i.e. management may have designed the control correctly but that does not mean the control has been implemented.

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

I don't know, my text must be wrong then

[mtwst113]

What is causing you trouble?

BEC | √
AUD| √
FAR| Spring 2015

[Anonymous]

The contradiction with my book, source referenced

[Author]

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