Today's World of Audits
by Larry Perry, CPA, CPA Firm Support Services, LLC - Larry has over 40 years experience as a CPA practitioner, author of accounting and auditing manuals, author and presenter of live staff training seminars and author of webcast and self-study CPE programs. He is co-founder of CPA Firm Support Services, LLC (www.cpafirmsupport.com), an organization providing resources, training and consulting to smaller CPA firms. Larry writes a weekly blog on AccountingWEB.com focusing on small audits, reviews and compilations. He is currently developing documentation manuals and handbooks for small audits, reviews and compilations and related electronic practice aids.
Latest posts
Jan
27
Similar to my discussion in a previous blog on cash auditing procedures, learning “how” to audit accounts receivable is mainly learning to “what extent” auditing procedures should be applied. The amount of aud
Jan
20
Learning “how” to audit cash is mainly learning “when” to audit cash and to “what extent” cash auditing procedures should be applied. The cause of much over-auditing on many engagements, the amount
Jan
14
Analytical procedures consist of absolute comparisons of dollar balances with prior years’ account balances, or with budgets, ratio comparisons and trend analysis, and computations based on financial or operational data designed to p
Jan
06
A common, effective risk assessment procedure is a systems walk-through procedure. By tracing transactions from their inception to their termination in the general ledger, an auditor can confirm internal control documentation (such a
Dec
31
SAS No.
Dec
22
First, tests of controls are not required by the risk assessment standards of 2006, or the redrafts of those standards effective for periods ending after December 15, 2012. Sufficient substantive evidence can be obtained from other r
Dec
16
Assertions are representations of management that are embodied in all financial statement components or classifications. Specific audit objectives are developed in each audit area to evaluate the appropriateness and reasonableness of
Dec
10
On my first day as a staff assistant for a local CPA firm, a partner asked me to accompany him on the first day of audit fieldwork for a small client. Upon arrival, the partner directed me to a conference room as he gathered bank sta
Dec
02
The substantive tests of balances normally make the most substantial contributions to accomplishing audit objectives. Generally, however, the detailed tests of balances are the most costly procedures. When a reporting entity ha
Nov
25
Designing an audit plan and selecting types of tests based on risk assessment procedures is the first step for performing tests of balances. Risks or the lack thereof, strengths and deficiencies in the client’s internal control
