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Author: Perry M. Henderson, CPA, MPA
Description: SAS 106 significantly expands and recategorizes the assertions used in audits for:
It also requires a closer correlation between those assertions and the audit procedures used in gathering audit evidence. It provides new definitions of several terms including audit evidence and the sufficiency and appropriateness of that evidence. It also creates significant new guidance for using relevant assertions to assess risk and design audit procedures; assessing the reliability of various types of audit evidence; risk assessment's place in the body of audit evidence; and uses and limitations of inquiry. Finally, it describes the risk assessment procedures of inquiry, analytical procedures, observation, and inspection. SAS106 supersedes SAS31, Evidential Matter. |
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