Professional Documents
Culture Documents
and Objectives
Chapter 6
Reasonable assurance
Professional skepticism
Capital acquisition
and repayment cycle
Inventory and
warehousing
cycle
2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6 - 17
Learning Objective 5
Describe why the auditor obtains
a combination of assurance by
auditing classes of transactions
and ending balances in accounts,
including presentation and
disclosure.
Sales returns
$ 1,242
and allowances
Charge-off of
$ 3,323 uncollectible
accounts
Ending balance $ 20,197
2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6 - 19
Learning Objective 6
Distinguish among the three
categories of management
assertions about financial
information.
Recorded transactions
Occurrence
exist
Existing transactions
Completeness
are recorded
Recorded transactions
Accuracy are stated at the
correct amounts
2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley 6 - 24
General Transactions-related Audit
Objectives
Rights and
Assets must be owned
obligations
Perform tests of
Complete the
controls and
Phase II Phase IV audit and issue
substantive tests
an audit report
of transactions