by Larry Perry, CPA, CPA Firm Support Services, LLC - Larry published the first accounting and auditing manuals for smaller CPA firms 25 years ago. By focusing on more efficient approaches to complying with professional standards on small audits, his audit approaches enable practitioners to design engagements in ways that produce the required audit evidence in the least amount of time. His approaches were revolutionary in the 1980s and they still are today! If you are performing small audits and are concerned about profitability, this blog is for you!
03/20/2010 - 11:52 - 151 reads
The concepts of materiality included in SAS No. 107 provide a framework for audit quality. They also provide opportunities for saving time by considering risk of material misstatement at both the financial statement and assertion levels. Here are some of the time savings opportunities:
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03/12/2010 - 18:29 - 268 reads
Good error analysis should be performed when an auditor evaluates the results of specific auditing procedures. It should contain both quantitative and qualitative analysis by the person performing the work.
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03/06/2010 - 12:44 - 361 reads
Most of us would answer that audit risk does affect materiality. That's what SAS No. 107 says, SAS No 47 before that. Drilling down, perhaps the question should be, "Do we appropriately reflect risks of material misstatements in setting materiality levels that guide audit engagement performance?" Again, most of us would answer yes.
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02/27/2010 - 14:25 - 578 reads -
Maybe some would ask the question this way, "What turns you on?" What do you really like to do? Why do you do what you do? Are you doing what you want to do? Look around. Do you see many people that are passionate about their work? Are you passionate about yours? Passion for our work can make it fun again!
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02/20/2010 - 13:20 - 347 reads
It used to be simple, even fun. We had three types of evidence to choose from on audits: 1) tests of controls, 2) analytical procedures, and 3) detailed tests of balances. Deciding on an audit approach was easy. If the client had a good system of internal control, we'd perform tests of controls and reduce the detailed tests of balances. Inadequate controls meant extensive detaied tests of balances. When we could perform highly-effective analytical procedures, detailed tests of balances reductions were also possible. End of planning game. Get out the
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