Question

The following is an audit procedure that an auditor performs relating to the financial report audit...

The following is an audit procedure that an auditor performs relating to the financial report audit of a client.

Identify the broad category of audit test that is performed for the audit procedure.

(Hint: The possible answers would include test of control, substantive test of ..., etc.)

Note: No marks will be given if more than one category of audit test is answered.

Determine whether all risks related to accounts receivable are adequately disclosed.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There are three broad categories  of audit tests

1.Risk assessment

2.Test of controls

3.substantive procedures

Determine whether all risks related to accounts receivable are adequately disclosed , the broad category of audit test performed for this procedure is Substantive procedures.

This audit test is used to evaluate  whether there is material misstatement in transactions or ending balances.There are two sub type in this category , they are Test of details and substantive analytical procedure.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following is an audit procedure that an auditor performs relating to the financial report audit...
The following is an audit procedure that an auditor performs relating to the financial report audit of a client. Identify the broad category of audit test that is performed for the audit procedure. (Hint: The possible answers would include test of control, substantive test of ..., etc.) Note: No marks will be given if more than one category of audit test is answered. Examine a sample of duplicate sales invoices to determine whether each one has a shipping document attached....
The following is an audit procedure that an auditor performs relating to the financial report audit...
The following is an audit procedure that an auditor performs relating to the financial report audit of a client. State the most appropriate assertion which is being tested by the audit procedure. Note: No marks will be given if more than one category of assertion is answered. Determine whether long-term receivables and related party receivables are reported separately in the financial statements. this is only question which is given AND WE NEED TO ANSWER.
The following is an audit procedure that an auditor performs relating to the financial report audit...
The following is an audit procedure that an auditor performs relating to the financial report audit of a client. State the most appropriate assertion which is being tested by the audit procedure. Note: No marks will be given if more than one category of assertion is answered. Select a sample of sales invoices, delivery dockets and customer orders and agree the details to the sales in the sales journal. Answer:
Analyse and explain how the following situation would affect the audit report for the financial year...
Analyse and explain how the following situation would affect the audit report for the financial year ended 30 June 2020. The client company, Rainbow Ltd, has capitalised a research and development expenditure of $2,450,000. However, to be able to realise the value of the capitalised expenditure, additional funding is required to continue the project development activities. It’s uncertain that the client is able to obtain this additional funding. The auditors believe that the information is adequately disclosed by the client...
PLEASE EXPLAIN THE FOLLOWING Understand the audit risk formula and model Understand the relationships between inherent...
PLEASE EXPLAIN THE FOLLOWING Understand the audit risk formula and model Understand the relationships between inherent risk and control risk and risk of material misstatement Understand the relationships between audit risk, Risk of Material Misstatement and detection risk (is it proportional/direct or inverse) If one goes up foes the other go up or down? Understand the impact of changes in inherent risk, control risk, detection risk to substantive testing. If detection or control risks go up or down does an...
Casey Jones is an auditor on the High End Limited audit engagement for the year ended...
Casey Jones is an auditor on the High End Limited audit engagement for the year ended 30 June 2012. Jimmy has performed a number of tests in relation to accounts payable. A number of suppliers were selected from the list of trade creditors at year end and balances traced to supplier invoices and goods received notes to ensure goods were received prior to the year end. For two creditors out of 15 tested the balance was only marginally overstated. Casey...
1. Which of the following best describes the reason why independent auditors report on financial statements?...
1. Which of the following best describes the reason why independent auditors report on financial statements? A management fraud may exist and it is more likely to be detected by independent auditors. An audit provides credibility to the financial statements. A misstatement of account balances may exist and it is generally corrected as the result of the independent auditors' work. Poorly designed internal controls may be present. 2. Audits of financial statements are designed to obtain reasonable assurance of detecting...
A walkthrough is: a brief tour of a client's office, warehouses, manufacturing and other operating facilities...
A walkthrough is: a brief tour of a client's office, warehouses, manufacturing and other operating facilities consists of the auditor following one or more transactions through the entire accounting process normally used to obtain substantive evidence as to whether an account is fairly presented performed near the end of the audit to be satisfied that all relevant assertions have been tested Substantive tests: are procedures designed to test for monetary misstatements in financial statement accounts and disclosures are used to...
The following are common tests of details of balances or substantive analytical procedures for the audit...
The following are common tests of details of balances or substantive analytical procedures for the audit of accounts receivable: 1- Select 20 customer accounts from the accounts receivable master file and trace to the aged accounts receivable listing to verify name and amount. 2- Select 20 customer accounts from the aged accounts receivable listing and trace to the accounts receivable master file for? name, amount, and aging categories. 3- Prepare a bar chart showing amounts and percentages of accounts receivable...
Below are audit procedures for the sales and collection, and acquisition and payments cycles. In each...
Below are audit procedures for the sales and collection, and acquisition and payments cycles. In each case, indicate the type of audit procedure (e.g. test of control, analytical procedure, substantive test of transactions, or test of details of balances), the transaction-related or balance-related audit objective and type of evidence (e.g. documentation, observation etc.). 1. Trace recorded sales transactions to shipping documents to determine whether a document exists. 2. Obtain a prelisting of cash receipts and trace amounts to the cash...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT