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 CPAnet Forum : AUD - Auditing & Attestation
Subject Topic: Analytical procedures (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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mmjp
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Posted: 09 Apr 2010 at 04:00 | IP Logged  

I have a question on MCQ's on BISK 39th edition Evidence No.81

Analytical procedures performed in the final review stage of an audit generally would include

a)
b)Considering the adequacy of the evidence gathered in response to unexpected balances identified in planning.
c)Summarizing uncorrected misstatements specifically identified through test of details of transactions and balances.
d)Calculating projected uncorrected misstatements estimated through audit sampling techniques.

Answer:b
A final consideration of the adequacy of evidence is appropriate for this stage.Summarizing uncorrected misstatements and calculating projected uncorrected misstatements estimated through audit sampling techniques is done before deciding on an audit opinion.

Do anyone have idea about which is later, final review stage or before deciding on an audit opinion?

Thank you.

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joecjr
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Posted: 09 Apr 2010 at 11:32 | IP Logged  

I believe the overall review stage is prior to the audit opinion because performing analytical procedures as a final review allows you to detect any unexpected relationships in the data, and will determine if you need to go back and do more substantive work to base the opinion.

Someone can correct me if thats not right please?



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FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
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mmjp
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Posted: 10 Apr 2010 at 00:03 | IP Logged  

joecjr,
I see.I'm clear with your explanation now.
Thank you for your help!

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lululene
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Posted: 08 May 2010 at 11:46 | IP Logged  

But final review stage is done before deciding on audit opinion as well. I am little confused.



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joecjr
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Posted: 08 May 2010 at 12:13 | IP Logged  

the stages in order are

planning, test controls, substantive procedures, overall review, opinion.

you have to do the overall review before you can issue the opinion.  If you find unexpected results in your analytical procedures in the overall review stage, the auditor has to potentially go back and do more substantive work to base the opinion on fairness of the financial statements.

Therefore, opinion comes AFTER review.

now if you have subsequent events------------- then this requires some modification as to what gets included in the f/s or notes to f/s.... not to confuse the two.



__________________
FAR [83] 1109 Yaeger
AUD [90] 0510 Roger CPA
BEC [76] 0810 Yaeger/Gleim
REG [80] 1110 Yaeger
Done 12/16/2010
1year & 4months

Philadelphia, PA
joey_cjr@yahoo.com
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