Category Archives: Auditing Theory

Safeguarding of Controls

Safeguarding of controls limit access to an organization’s assets to authorized personnel. Access includes both direct physical access and indirect access through the preparation or processing o f documents that authorize the use or disposition of assets. 1) EXAMPLES: a) … Continue reading

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Segregation of Duties

Segregation of duties involves assigning different employees to perform functions such that an employee acting alone is prevented from committing an error or concealing a fraud in the normal course of his or her duties. 1) Four types of functional … Continue reading

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COSO Framework

Internal Control – Integrated Framework is widely accepted as the standard for the design and operation of internal control systems. COSO Model defines; Internal control is  a process, effected by an entity’s board of directors, management, and other personnel, designed … Continue reading

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How to know if Audit evidence are reliable?

All audit evidence are deemed reliable. Audit evidence should be sufficient and appropriate. Auditor’s should acquire accounting records and reliable information. Compare different audit evidence: Outside sources evidence are more reliable than internally generated audit evidence because they are persuasive rather … Continue reading

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Professional Skepticism

Professional skepticism is an informed decisions and implemented on the following: Determining materiality and used for attesting audit risk. Determining the nature, timing and extent of audit. Evaluating Management decisions. Evaluating sufficient audit evidence. Forming audit conclusions. The auditor should … Continue reading

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Philippine Framework for Assurance Engagement

Objective of Assurance Engagement is for a professional accountant to evaluate or measure a subject matter that is the responsibility of another party against identified suitable criteria, and to express conclusion that provides intended user with a level of assurance … Continue reading

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PSA 220 Quality Control For Audit Work

QUALITY CONTROL FOR AUDIT WORK Audit Firm Level: The audit firm should implement quality control policies and procedures designed to ensure that all audits are conducted in accordance with PSAs or relevant national standards or practices. 1. Professional requirements: independence, integrity, … Continue reading

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