POST ACC522 Unit 4 Discussion Latest 2018 October

ACC522 Advanced Audit Issues

Unit 4 Discussion

Fraud versus Error

What is the difference between fraud versus and error?

Let’s discuss the importance of distinguishing the auditor’s assessment of the risk of material misstatement due to fraud from the assessment of the risk of material misstatement due to error.

How should the auditor consider risks related to revenue recognition when assessing the risk of material misstatement due to fraud?

What types of inquiries should the auditor make when considering the risk of material misstatement due to fraud?

Internal Control Environment and Processes

What aspects of internal control must the auditor assess when performing procedures to obtain an understanding of internal control?

What is the control environment? What is the relationship between the control environment and the other four components of internal control?

The separation of operational responsibility from record keeping is meant to prevent different types of misstatements than the separation of custody of assets from accounting. Explain the difference in the purposes of these two types of separation of duties.

What is the auditor’s responsibility for obtaining an understanding of the internal control?

What is an internal control walkthrough? What is its purpose?