SK Chow - The Auditing Song

Inspired by the unqualified opinion. Lyrics:

We have audited the accompanying balance sheet
Of this Company at the end of the fiscal year
And the other statements, too, they're the responsibility
Of management, but our job is to give an opinion

We've done our job in GAAS (like the gas man)
And we performed our task (with a plan to)
Be reasonably sure that nothing wrong is material

What is an audit? Well, we examine evidence.
That supports the things disclosed in the statement
We assess the way they do their accounting
And the way they make their estimates and their presentation.

We think this is reasonable (for a basis)
And in our opinion (smiley faces)
The statements present fairly in all the ways that are
Material, so

The position as of year-end
The income statement, my friend
The cash flow for the year then ended
Conforms with GAAP in the United States of America

Category:

Music

Tags:

• auditing
• gaap
• sec
• fasb
• big 4
• tie out
• sk chow
• gaas
• cpa

[Vontfess]

how do you determine the fucking difference between an control audit procedure and detailed of balances???? like wtf is that

[skchowmusic]

@Vontfess If you're vouching an invoice or recalculating a spreadsheet that supports some amount, that's auditing an account balance. If you're testing a control, that means you're testing whether management has performed a particular activity that would detect or prevent a misstatement----for the auditor that might include checking to see if the control was done, or actually reperforming the control to see that it was done properly.

[meschwar]

If/when I pass my AUD exam, I'm going to find your address and send you a present.

[skchowmusic]

@meschwar Good luck! I actually wrote this while I was studying for AUD.