audit procedures

What Sort Of Evidence Must An Auditor Consider When Testing The Operating Effectiveness Of Internal Controls?

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What Sort Of Evidence Must An Auditor Consider When Testing The Operating Effectiveness Of Internal Controls? Procedures the auditor performs to test operating effectiveness include a mix of inquiry of appropriate personnel, observation of the company’s operations, inspection of relevant documentation, and re-performance of the control. Which evidence collection technique shall evaluate the effectiveness of

What Is An Analytical Review In Auditing?

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What Is An Analytical Review In Auditing? An analytical review is used by auditors to assess the reasonableness of account balances. A CPA does this by comparing changes in account balances over time, as well as by comparing related accounts. … If sales increase by 20% during the review period, then accounts receivable should increase

Which Of The Following Procedures Would An Auditor Most Likely Perform In Searching For Unrecorded Payables Quizlet?

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Which Of The Following Procedures Would An Auditor Most Likely Perform In Searching For Unrecorded Payables Quizlet? Which of the following procedures would an auditor most likely perform in searching for unrecorded payables? Compare cash payments occurring after the balance sheet date with the accounts payable trial balance. You just studied 22 terms! Which of

What Are Substantive Analytical Procedures?

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What Are Substantive Analytical Procedures? Substantive analytical procedures. Analytical procedures are used as substantive procedures when the auditor considers that the use of analytical procedures can be more effective or efficient than tests of details in reducing the risk of material misstatements at the assertion level to an acceptably low level. What are examples of

What Is An Audit Of Internal Control Over Financial Reporting?

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What Is An Audit Of Internal Control Over Financial Reporting? The auditor’s objective in an audit of internal control over financial reporting is to express an opinion on the effectiveness of the company’s internal control over financial reporting. … This standard establishes the fieldwork and reporting standards applicable to an audit of internal control over

What Increases Risk Of Material Misstatement?

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What Increases Risk Of Material Misstatement? Factors that can increase the risk of material misstatement on a financial statement level include: Managerial incompetence. Poor oversight by the board of directors. Inadequate accounting systems and records. What are the components of risk of material misstatement? Risk of material misstatement is defined as ‘the risk that the

What Is Test Of Controls In Auditing?

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What Is Test Of Controls In Auditing? A test of control describes any auditing procedure used to evaluate a company’s internal controls. The aim of tests of control in auditing is to determine whether these internal controls are sufficient to detect or prevent risks of material misstatements. … This, in turn, reduces the client’s risk.

What Is The Correct Sequence Of Applying The Five Steps Of Materiality?

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What Is The Correct Sequence Of Applying The Five Steps Of Materiality? What is the correct sequence of applying the five steps of materiality? 1) Estimate the combined misstatement. 2) Estimate the total misstatement in the segment. 3) Set the preliminary judgement of materiality. What are the steps of an audit? Management Notification. Generally, Internal