Chapter 16: Audit Sampling for Tests of Details of Balances
Objectives
After studying this chapter, you should be able to:
- Differentiate audit sampling for tests of details of balances and for tests of controls and substantive tests of transactions.
- Apply nonstatistical sampling to tests of details of balances.
- Apply monetary unit sampling.
- Describe variables sampling.
- Use difference estimation in tests of details of balances.
Chapter 17: Audit of the Payroll and Personnel Cycle
Objectives
After studying this chapter, you should be able to:
- Identify the accounts and transactions in the payroll and personnel cycle.
- Describe the business functions and the related documents and records in the payroll and personnel cycle.
- Understand internal control and design and perform tests of controls and substantive tests of transactions for the payroll and personnel cycle.
- Design and perform analytical procedures for the payroll and personnel cycle.
- Design and perform tests of details of balances for accounts in the payroll and personnel cycle.
Chapter 18: Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable
Objectives
After studying this chapter, you should be able to:
- Identify the accounts and the classes of transactions in the acquisition and payment cycle.
- Describe the business functions and the related documents and records in the acquisition and payment cycle.
- Understand internal control and design and perform tests of controls and substantive tests of transactions for the acquisition and payment cycle.
- Describe the methodology for designing tests of details of balances for accounts payable using the audit risk model.
- Design and perform analytical procedures for accounts payable.
- Design and perform tests of details of balances for accounts payable, including out-of-period liability tests.
- Distinguish the reliability of vendors' invoices, vendors' statements, and confirmations of accounts payable as audit evidence.
Chapter 19: Completing the Tests in the Acquisition and Payment Cycle: Verification of Selected Accounts
Objectives
After studying this chapter, you should be able to:
- Recognize the many accounts in the acquisition and payment cycle.
- Design and perform audit tests of property, plant, and equipment and related accounts.
- Design and perform audit tests of prepaid expenses.
- Design and perform audit tests of accrued liabilities.
- Design and perform audit tests of income and expense accounts.
Chapter 20: Audit of the Inventory and Warehousing Cycle
Objectives
After studying this chapter, you should be able to:
- Describe the business functions and the related documents and records in the inventory and warehousing cycle.
- Explain the five parts of the audit of the inventory and warehousing cycle.
- Design and perform audit tests of cost accounting.
- Apply analytical procedures to the accounts in the inventory and warehousing cycle.
- Design and perform physical observation audit tests for inventory.
- Design and perform audit tests of pricing and compilation for inventory.
- Integrate the various parts of the audit of the inventory and warehousing cycle.
