1) Obtaining sufficient audit evidence over the sales of a given company means that the auditor...
1) Obtaining sufficient audit evidence over the sales of a given company means that the auditor
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1) Obtaining sufficient audit evidence over the sales of
a given company means that the auditor...
ASAP!! An auditor is concerned about various contentions while obtaining audit evidence for conduct of an...
ASAP!! An auditor is concerned about various contentions while obtaining audit evidence for conduct of an audit. What are those various contentions with respect to transactions for the period.
1. In performing the audit of Company A, an auditor picked a sample of recorded payables...
1. In performing the audit of Company A, an auditor picked a sample of recorded payables and performed the 3-way match testing (matching purchase order issued by the Company, good received note from the warehouse and invoice from the vendor). This is the most effective substantive procedure to test for the Existence assertion of Accounts Payable. A. True B. False 2. An auditor performed the walkthrough and the test of operating effectiveness and did not identify any exceptions. Does the...
Question 1 (20 marks) The statements that follow are with regard to evidence that is sufficient...
Question 1 (20 marks) The statements that follow are with regard to evidence that is sufficient and appropriate. As a future auditor, you are required to indicate if you agree with each statement and provide reasons for your decisions: a) An auditor can only properly measure the appropriateness and sufficiency of audit evidence that will be used when expressing opinions are by utilising statistical sampling method only when they are gathering evidence. b) The conduction of an audit in prior...
An auditor is reviewing the transactions of a company. Past experience tells the auditor that the...
An auditor is reviewing the transactions of a company. Past experience tells the auditor that the percentage of incorrect transactions should be around 2%. After reviewing a sample of 500 transactions, the auditor found that the percentage of incorrect transactions is 2.5%. With 5% significance level, is there sufficient evidence to conclude that the percentage of incorrect transactions is higher than before?
_____ means the application of audit procedures to less than 100% of the items
_____ means the application of audit procedures to less than 100% of the items within an account balance or class of transactions to enable the auditor to obtain and evaluate audit evidence. a. Inspection b. Observation c. Audit sampling d. Analytical Procedure
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined...
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined that pledged inventory was identified in a note. (b) The auditor confirmed goods held by the client in a public warehouse. The auditor performed a purchases cutofftest to assure all purchase transactions for the year were included in the balance. The auditor accounted for the numerical sequence of purchase orders. The auditor vouched the recorded payables to receiving documents. (f) The auditor determined that...
6. While performing an audit, the auditor should allow for some misstatement of lessor value than...
6. While performing an audit, the auditor should allow for some misstatement of lessor value than the assessed materiality level so in total the misstatements might not result in a material misstatement to the financial statements. In order to do so, the auditor sets which of the following lower than the materiality level (s)? a. Test of controls. b. Difference in comparison of current year amounts to prior-year amounts. c. Performance materiality. d....
Worthington Department Stores Auditing standards require the auditor to obtain sufficient appropriate audit evidence (AS 1105.04:...
Worthington Department Stores Auditing standards require the auditor to obtain sufficient appropriate audit evidence (AS 1105.04: Audit Evidence). The audit firm of Hepple & Ramsey was investigated for the audit of Worthington. Worthington is a large discount catalog department store chain. The company recently expanded from 6 to 43 stores by borrowing from several large financial institutions and from a public offering of common stock. A recent investigation has disclosed that Worthington materially overstated net income. This was accomplished by...
The auditor should guard against unwarranted inferences in gathering audit evidence. The following are examples of...
The auditor should guard against unwarranted inferences in gathering audit evidence. The following are examples of inappropriate inferences that auditors may make because they use evidence that is not entirely relevant to the assertion being tested. The auditor tests the existence of the client’s equipment by inspecting the asset and concludes that the asset exists and is owned by the client. Select the statement that accurately evaluates the auditor’s test described above. a. The only purpose of inspecting the equipment...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling,...
Chapter 5 & 6- Basics of the Audit Understand the different types of procedures (analytics, sampling, year end, interim work)- what they mean, being able to identify examples. (If I give you a procedure can you determine if it is an analytical procedure, work performed at interim, etc.) Understanding the audit risk model- what it means to asses risk as high, moderate, low, or maximum. (Do you do more or less work) (If I change one part of the formula...
An auditor is reviewing the transactions of a company. Past experience tells the auditor that the percentage of incorrect transactions should be around 2%. After reviewing a sample of 500 transactions, the auditor found that the percentage of incorrect transactions is 2.5%. With 5% significance level, is there sufficient evidence to conclude that the percentage of incorrect transactions is higher than before?
(d) LIST OF AUDIT PROCEDURES PERFORMED FOR INVENTORY Audit Procedure Management Assertion (a) The auditor determined that pledged inventory was identified in a note. (b) The auditor confirmed goods held by the client in a public warehouse. The auditor performed a purchases cutofftest to assure all purchase transactions for the year were included in the balance. The auditor accounted for the numerical sequence of purchase orders. The auditor vouched the recorded payables to receiving documents. (f) The auditor determined that...
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