CHAPTER 15 Auditing the Expenditure CycleSpring 2007.ppt

CHAPTER 15 Auditing the Expenditure CycleSpring 2007 Expenditure Cycle Transaction Classes and Accounts: Purchases Expenditure Transaction Classes and Accounts: Cash Disbursement Adjustments General Audit Strategy Assess Inherent Risk Use Knowledge of Business and Industry to Perform Analytic Procedures and Assess Analytic Procedures Risk Assess Control Risk Evidence of effectiveness gained while obtaining an understanding of internal controls Evidence of effectiveness of management controls Evidence of effectiveness from direct tests of programmed controls Design Appropriate Substantive Te