In this lesson, the audit opinion process is explained through a graphical display, detailing the steps taken throughout the year to reach a conclusion. The lesson begins by discussing interim work, which starts several months before the year end and aims to lessen the workload later on. Interim work involves performing audit testing and various confirmations like cash, receivables, and inventories. The lesson continues by examining cutoffs, which ensure accurate allocation of transactions to the respective periods by checking revenues, expenses, assets, and liabilities. Finally, the lesson covers year-end work, during which draft financial statements are reviewed and any issues discovered during auditing procedures are addressed. Nick Palazzolo, CPA, highlights the differences between exam content and real-life experiences, reminding us that reality may differ as there are various types and sizes of audits.
Lesson: Audit Opinion Process
In this lesson, the audit opinion process is explained through a graphical display, detailing the steps taken throughout the year to reach a conclusion. The lesson begins by discussing interim work, which starts several months before the year end and aims to lessen the workload later on. Interim work involves performing audit testing and various confirmations like cash, receivables, and inventories. The lesson continues by examining cutoffs, which ensure accurate allocation of transactions to the respective periods by checking revenues, expenses, assets, and liabilities. Finally, the lesson covers year-end work, during which draft financial statements are reviewed and any issues discovered during auditing procedures are addressed. Nick Palazzolo, CPA, highlights the differences between exam content and real-life experiences, reminding us that reality may differ as there are various types and sizes of audits.
Updated: June 22, 2023 Create an account