There are many factors that affect the auditor's decision as to how much direct testing of an
Question:
Required
a. Identify the factors that affect the auditor's decision as to whether to perform direct tests of an account balance, and if so, how much testing is required.
b. For each factor identified, indicate how it affects the auditor's decision of how much direct testing to perform.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
a Factors that affect the auditors decision on whether a particular control should be tested include Extent to which risk is mitigated by controls in ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Question Posted:
Students also viewed these Auditing questions
-
There are many factors that affect a students success in school. A professor is concerned that many of her students work at part-time or even full-time jobs while they are attending school. Work...
-
There are many factors that may affect the size of the sample the auditor takes to test controls. Required a. Identify the factors the auditor should consider in developing the sample to perform...
-
Factors that Affect the Bond Issue Price Rivera Inc. is considering the issuance of $500,000 face value, ten-year term bonds. The bonds will pay 5% interest each December 31. The current market rate...
-
John Wilson is a conservative investor who has asked your advice about two bonds he is considering. One is a seasoned issue of the Capri Fashion Company that was first sold 22 years ago at a face...
-
What measures can be employed to improve the quality of a sheared edge?
-
Is the miss rate of a two-way set associative cache always, usually, occasionally, or never better than that of a direct mapped cache of the same capacity and block size? Explain.
-
Use activity-based costing to allocate costs to products or services and identify the four steps involved in the design and implementation of activity-based costing systems.
-
Cost of Assets, Subsequent Book Values, and Balance Sheet Presentation The following events took place at Tasty-Toppins Inc., a pizza shop that specializes in home delivery, during 2010: a. January...
-
Gamma Company had the following inventory activity during April. Gamma uses a periodic inventory system and the FIFO cost flow assumption. Unit Date Units Cost, $ Beginning Inventory 1-Apr 75 19...
-
Convert 1250 millimeters to meters.
-
The COSO internal control framework provides guidance to management to reduce residual risk to an acceptable level. Required a. Define the term "residual risk." b. Should residual risk be determined...
-
The auditor determines that there may be misstatements in the inventory and cost of goods sold account. During the conduct of the audit, the auditor found a material weakness in internal controls in...
-
USCo owns 65% of the voting stock of LandCo, a Country X corporation. Terra, an unrelated Country Y corporation, owns the other 35% of LandCo. LandCo owns 100% of the voting stock of OceanCo, a...
-
A company's gross profit percentage is 3 0 % . The company offers a 2 5 % qualified employee discount to its key employees and a 1 5 % discount to all other employees. If Kat, a key employee, and...
-
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0.50 that consumers will love Happy Forever, and in this case, annual sales will be 1.06 million...
-
Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. Standard Cost per Actual Cost per Unit Direct...
-
Tamarisk Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1.5 million on March 1, $1.2 million on June 1, and $3 million on...
-
Harbor Images has collected the following cost data for various levels of activity: Month August September October November 31 Images Created 5,600 7,350 7,700 4,100 Total Cost $ 5,620 6,240 8,474...
-
Consider the following business leaders. What type of communication style might you adapt or flex to when interacting with each of them? a. Sheryl Sandberg (LeanIn.org) b. Reed Hastings (Netflix) c....
-
Could the owner of a business prepare a statement of financial position on 9 December or 23 June or today?
-
Explain how a project having a positive net present value will also have a profitability index greater than 1.0.
-
Consult Paragraph 25 of PCAOB Auditing Standard No. 5. Define what is meant by control environment. Why does the tone at the top have such an important effect on internal control over financial...
-
Consult Paragraph A4 (in Appendix A) of PCAOB Auditing Standard No. 5. What is the auditors responsibility related to information disclosed by management at the time of an earnings release, if any?...
-
Consider the principles, assumptions, and constraints of Generally Accepted Accounting Principles (GAAP). Define the revenue recognition principle and explain why it is important to users of...
-
Quality Chairs Inc. (QC) manufactures chairs for industrial use. Laura Winters, the Vice President for Marketing at QC, concluded from market analysis that sales were dwindling for QC's standard...
-
Futura Company purchases the 79,000 starters that it installs in its standard line of farm tractors from a supplier for the price of $10.00 per unit. Due to a reduction in output, the company now has...
-
Posting a Revenue Journal The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of $880 consisting of an amount due from...
Study smarter with the SolutionInn App