Questions from Auditing and Assurance

Q: Explain the circumstances when the auditor should revise the components of the

Explain the circumstances when the auditor should revise the components of the audit risk model and the effect of the revisions on planned detection risk and planned evidence.

Q: The following are 11 audit procedures taken from an audit program:

The following are 11 audit procedures taken from an audit program: 1. Foot the accounts payable trial balance and compare the total with the general ledger. 2. Confirm accounts payable balances direct...

Q: Evaluate the following statement: "Tests of sales and cash receipts

Evaluate the following statement: "Tests of sales and cash receipts transactions are such an essential part of every audit that I like to perform them as near the end of the audit as possible. By that...

Q: State the relationship between the confirmation of accounts receivable and the results

State the relationship between the confirmation of accounts receivable and the results of the tests of controls and substantive tests of transactions.

Q: The following questions deal with confirmation of accounts receivable. Choose the

The following questions deal with confirmation of accounts receivable. Choose the best response. a. The negative form of accounts receivable confirmation request is useful except when (1) Internal con...

Q: What are the five types of tests auditors use to determine whether

What are the five types of tests auditors use to determine whether financial statements are fairly stated? Identify which tests are performed to reduce control risk and which tests are performed to re...

Q: How will the conduct of an audit of a medium-sized

How will the conduct of an audit of a medium-sized company be affected by the company's being a small part of a large conglomerate as compared with it being a separate entity?

Q: Define what is meant by inherent risk. Identify four factors that

Define what is meant by inherent risk. Identify four factors that make for high inherent risk in audits.

Q: What three types of authorizations are commonly used as internal controls for

What three types of authorizations are commonly used as internal controls for sales? For each authorization, state a substantive test that the auditor could use to verify whether the control was effec...

Q: Define what is meant by alternative procedures in the confirmation of accounts

Define what is meant by alternative procedures in the confirmation of accounts receivable and explain their purpose. Which alternative procedures are the most reliable? Why?