Finance - Auditing and Assurance Services-A Systematic Approach - Chapter 06 Internal Control in a Financial Statement Audit - McGraw Hill 2003.pdf

Messier: Auditing and III. Planning the Audit and 6. Internal Control in a © The McGraw−Hill
Assurance Services: A Understanding Internal Financial Statement panies, 2003
Systematic Approach, Control
Third Edition
Chapter 6
Internal Control in a Financial
Statement Audit
LEARNING OBJECTIVES RELEVANT ACCOUNTING AND
AUDITING PRONOUNCEMENTS
pletion of this chapter you will
[1] Understand the importance of internal control COSO, Internal Control—Integrated Framework (New
to management and auditors. York: AICPA, 1992)
[2] Learn the definition of internal control. AU 311, Planning and Supervision
AU 312, Audit Risk and Materiality in Conducting
[3] Identify ponents of internal control.
an Audit
[4] Understand the effect of information technology
AU 313, Substantive Tests Prior to the Balance-Sheet
on internal control.
Date
[5] Learn how to plan an audit strategy. AU 319, Consideration of Internal Control in a
[6] Learn how to develop an understanding of an Financial Statement Audit
entity’s internal control. AU 322, The Auditor’s Consideration of the Internal
[7] Identify the tools available for documenting the Audit Function in an Audit of Financial Statements
understanding of internal control. AU 324, Reports on the Processing of Transactions
[8] Know how to assess the level of control risk. by anizations
AU 325, Communication of Internal Control–Related
[9] Learn the types of tests of controls.
Matters Noted in an Audit
[10] Understand audit strategies for the nature, AU 329, Analytical Procedures
timing, and extent of substantive tests based on AU 339, Audit Documentation
different levels of detection risk. AU 532, Restricting the Use of an Auditor’s Report
[11] Understand the considerations for the timing of
audit procedures.
[12] Learn about the auditor’munication of
internal control–related matters.
[13] Learn how to flowchart an accounting cycle.
Assessing control risk is a major step in the