User:Vosman0662286/sandbox

LIBR 2100 Project

Due Thursday August 6th

At this stage, if the auditor chooses to accept the control risks that has been set and does not want to reduce the risk, then the auditor may not choose to perform test of control. The auditor has the ability to perform other tests, one of these tests is known as substantive testing which is a procedure that examines the financial statements and supporting documentation to see if they contain errors. Another test the auditor may perform is a test of details, which is when the auditor focus on the items that are contained in the financial statement account balances and disclosures, an example of this would be when the auditor tests accounts payable by examining a sample of individual invoices. By doing these two tests you have the ability to detect material misstatements which pertains more directly to a detection risk rather than inherent or control risk.

Due Saturday August 1st

Original passage along with chosen citation:

At this stage, if the auditor accept the CR that has been set at the phase I and does not want to reduce the controls risk, then the auditor may not perform test of control. If so, then the auditor perform substantive test of transactions. This test determines the amount of work to be performed i.e. substantive testing or test of details.

Due Saturday July 25th

Rough Draft of new content: While obtaining an understanding of the system, the auditor may or may not have chosen to perform tests of controls to evaluate the effectiveness of the design and operation of controls. When the auditor doesn’t want to reduce the control risk they can perform other tests like performing tests of details of transactions to detect material misstatements pertains more directly to detection risk rather than inherent or control risk.

Selected article: Financial Audit

Passage to cite: At this stage, if the auditor accept the CR that has been set at the phase I and does not want to reduce the controls risk, then the auditor may not perform test of control. If so, then the auditor perform substantive test of transactions. This test determines the amount of work to be performed i.e. substantive testing or test of details.

Sources: http://www.sciencedirect.com.ezproxy.msvu.ca/science/article/pii/S0748575112000462 http://www.sciencedirect.com.ezproxy.msvu.ca/science/article/pii/S1061951803000193

Source suggested by Ziggy2012: Tests of Control in the Audit Risk Model: Effective? Efficient? (found through Business Source Premier: EBSCO)

Ziggy2012 (talk) 10:49, 28 July 2015 (UTC)

Risk and uncertainty

Passage: Risk associated with project outcomes is usually handled using probability theory. This can be factored into the discount rate (to have uncertainty increasing over time), but is usually considered separately. Particular consideration is often given to risk aversion—the irrational preference for avoiding loss over achieving gain. Expected return calculations do not account for the detrimental effect of uncertainty.[citation needed]

Financial Audit Passage: At this stage, if the auditor accept the CR that has been set at the phase I and does not want to reduce the controls risk, then the auditor may not perform test of control. If so, then the auditor perform substantive test of transactions. This test determines the amount of work to be performed i.e. substantive testing or test of details.[citation needed]

Observation: This article requires a few citations and needs to be reworded some.

Group Member Feedback/Observations:

I like the source you have selected to cite the passage and agree that it should be reworded/cited. What search strategy did you use to find your source? Ziggy2012 (talk) 01:41, 31 July 2015 (UTC)

Hello, My name is Emily, and I am going into my fourth year at the Mount. I am majoring in accounting, and am currently working with Sobeys in their Financial Reporting department at their national office.