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In performing the audit of internal control over financial reporting, the auditor emphasizes ...

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In performing the audit of internal control over financial reporting, the auditor emphasizes ...

In performing the audit of internal control over financial reporting, the auditor emphasizes internal control over classes of transactions because

▸ the accuracy of accounting system outputs depends heavily on the accuracy of inputs and processing.

▸ the class of transaction is where most fraud schemes occur.

▸ account balances are less important to the auditor then the changes in the account balances.

▸ classes of transactions tests are the most efficient manner to compensate for inherent risk.

Textbook

Auditing and Assurance Services

Edition: 17^th

Authors: Arens, Elder, Beasley, Hogan

Read 93 times

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