Question

The three general types of audit tests are risk assessment procedures, tests of controls, and substantive...

The three general types of audit tests are risk assessment procedures, tests of controls, and substantive tests. Explain?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are some examples of substantive tests and audit procedures for inventory?
What are some examples of substantive tests and audit procedures for inventory?
An auditor may perform the following three types of substantive procedures: (a) tests of details of...
An auditor may perform the following three types of substantive procedures: (a) tests of details of transactions; (b) tests of details of balances; and (c) analytical procedures. Below are specific audit procedures that fall within one of these categories: 1. Reconcile supplier statements at the year-end with balances in the purchase ledger. 2. Agree a sample of sales invoices to goods despatch records held in the inventory system. 3. Review post year-end receipts from customers to establish the extent of...
Why are substantive procedures required in both a purely substantive audit approach and a combined audit...
Why are substantive procedures required in both a purely substantive audit approach and a combined audit approach? Question 19 options: a) Inherent risk cannot be eliminated entirely. b) Tests of controls alone are too costly. c) It is more effective to audit a large number of transactions using substantive procedures. d) Substantive procedures can be performed after year end. = Question 21 (1 point) When audit, inherent, and control risk are all assessed as low, detection risk is assessed as...
Which of the following is false regarding substantive testing? Analytical procedures are a type of substantive...
Which of the following is false regarding substantive testing? Analytical procedures are a type of substantive test. Substantive tests of transactions are used to determine whether all six-transaction related audit objectives have been satisfied for each class of transactions. Assessed control risk does not affect the planning of substantive procedures. An exception in a substantive test is a financial statement misstatement.
Discuss common controls, tests of controls and substantive tests of transactions for property, plant and equipment.
Discuss common controls, tests of controls and substantive tests of transactions for property, plant and equipment.
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...
An auditor determines that the audit risk is low, the inherent risk is high and the...
An auditor determines that the audit risk is low, the inherent risk is high and the client’s internal controls are not effective. Which of the following conclusions can be reached? A. None of the options is correct. B. Auditors need to perform tests of controls. If the client’s internal control is proven to be effective, reduce the extent of substantive tests. C. Predominantly substantive strategy needs to be used. D. Auditors can choose to use lower assessed control risk strategy....
At the completion of the tests of controls and substantive tests of? transactions, auditors must analyze...
At the completion of the tests of controls and substantive tests of? transactions, auditors must analyze each exception to determine its cause and the implication of the exception on assessed control risk. True False An essential part of the? auditor's responsibility in auditing cash receipts is to identify deficiencies in internal control that increase the likelihood of fraud. True False When auditing sales returns and? allowances, the emphasis is normally on testing the completeness objective. True False The extent of...
30) Which of the following audit tests form the basis for an auditor's report on internal...
30) Which of the following audit tests form the basis for an auditor's report on internal control over financial reporting?                A) tests of controls                          B) tests of transactions C) analytical procedures                D) tests of details of balances 31) Which of the following is generally not included in the "evidence mix"? A) tests of details of balances      B) tests of controls C) risk assessment procedures    D) substantive tests of transactions 32) When an auditor believes that analytical procedures indicate a...
In this chapter, focus on the following: specific tests of controls substantive tests of transactions for...
In this chapter, focus on the following: specific tests of controls substantive tests of transactions for the Sales and Collections Cycle
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT