In his current auditing assignment, Warren has chosen to follow a reliance on controls strategy for...
In his current auditing assignment, Warren has chosen to follow a reliance on controls strategy for an assertion. Before performing tests of controls, what should Warren do?
-
A : Identify key controls to test
-
B : Evaluate evidence of control risk
-
C : Prepare a preliminary audit strategy
-
D : Track the flow of documents through the system
Homework Answers
Option A - Identify key controls to test
When one is placing reliance on controls then he should identify those controls and test them before performing tests of controls
Add Answer to:
In his current auditing assignment, Warren has chosen to follow
a reliance on controls strategy for...
Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the...
Question: Question 183 Processing auditor test data using the client's software application _______. -will allow the auditor to verify manual controls within the software application are functioning as designed -may corrupt the client's system, and should not be attempted -will allow the auditor to verify that the software application is functioning as designed -should be performed without the knowledge of the client's senior management Question 19 The tolerable deviation rate _______. -relates to how many immaterial misstatements the auditor finds...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit. During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit. During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for...
The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA, your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit. During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and...
Question 1 (12 marks) Public accounting firms perform audits of financial statements. CAS 220, Quality Control...
Question 1 (12 marks) Public accounting firms perform audits of financial statements. CAS 220, Quality Control for an Audit of Financial Statements addresses the specific responsibilities of the auditor regarding quality control procedures for an audit of financial statements. All firms that perform audits must have standards for audit fieldwork and quality control procedures that must be followed by all staff performing an audit of financial statements. Required: i. Briefly outline the requirements for Quality Control for an Audit of...
1.Which of the following is not one of the steps the auditor must perform to assess...
1.Which of the following is not one of the steps the auditor must perform to assess control risk at less than “high” for a financial statement assertion? A) obtain an understanding of internal control B) identify controls that address all relevant assertions in the financial statements C) make a preliminary assessment of control risk based on the design of relevant controls D) test the operating effectiveness of the controls that must be effective to reduce control risk 2.Which of the...
s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a...
s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a partial cadit program for substantive tests of accounts receivable. Required: For audit procedures 1-4, identify the primary assertion being tested. thro ne in the materiality Part 2 Audit Planning and Basic Auditing Concepts EXHIBIT 3 - 2 A Partial Audit Program for Substantive Procedures Testing of Accounts Receivable Audit Procedures WP Ref Completed by 1. Obtain the December 31, 2013, aged accounts receivable trial...
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and...
Question: Question 29 Assertions about classes of transactions and events typically include _______. -completeness, accuracy, and valuation -existence, rights, and cutoff -existence, rights, and obligations -occurrence, cutoff, and completeness Question 30 Assertions about account balances at year-end typically include _______. -existence, occurrence, and cutoff -existence, completeness, and allocation -existence, completeness, and rights and obligations -accuracy, valuation, and occurrence Question 31 Assertions about presentation and disclosure typically include _______. -cutoff, presentation, and disclosure -completeness, accuracy and valuation, and classification and understandability...
1. Auditing includes the concept of materiality. Which of the following would be considered material? a)The...
1. Auditing includes the concept of materiality. Which of the following would be considered material? a)The auditor confirms accounts receivable and notices one company has not sent in the confirmation form b)The auditor discovers a $200 error in the inventory account balance of $500,000 c)The auditor discovers related-party transactions are not recorded d)The auditor notices the name of the new CEO, hired in January 20x2 is not included in the annual report for 20x1 2. Substantive procedures would include: a)Gathering...
Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee
1. Which of the following matters would an auditor most likely consider to be a significant deficiency to be communicated to the audit committee? A. Management's failure to renegotiate unfavorable long-term purchase commitments.B. Recurring operating losses that may indicate going concern problems.C. Evidence of a lack of objectivity by those responsible for accounting decisions.D. Management's current plans to reduce its ownership equity in the entity. 2. After obtaining an understanding of internal control and arriving at a preliminary assessed level...
s Part 2 Audit Planning and Barr Ad LO 3- 9 3-30 Exhibit 3-2 contains a partial cadit program for substantive tests of accounts receivable. Required: For audit procedures 1-4, identify the primary assertion being tested. thro ne in the materiality Part 2 Audit Planning and Basic Auditing Concepts EXHIBIT 3 - 2 A Partial Audit Program for Substantive Procedures Testing of Accounts Receivable Audit Procedures WP Ref Completed by 1. Obtain the December 31, 2013, aged accounts receivable trial...
Most questions answered within 3 hours.
-
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 1 hour ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 1 hour ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 2 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 3 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 3 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 6 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 6 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 6 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 7 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 7 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 8 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 8 hours ago