Describe two audit techniques that the auditor should use to reduce the risk of financial statement misstatement

Question:

Describe two audit techniques that the auditor should use to reduce the risk of financial statement misstatement during the financial statement closing process.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Auditing The Art and Science of Assurance Engagements

ISBN: 978-0133405507

13th Canadian edition

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

See More Books

Question Posted: Dec 22, 2016 09:48 AM

See More Questions

Consider a company like General Motors that must make estimates on pension liabilities, health care liabilities, guarantees on the contracts with Delphi, warranty liabilities for its cars,...
The wauditor is to presume that there is fraud in revenue. Consider a company that manufactures high-tech fiber-optic gear. Assume that the Wall Street analysts believe the industry has good growth...
Stainless Steel Specialties (SSS) is a manufacturer of hot water-based heating systems for homes and commercial businesses. The company has grown about 10% in each of the past five years. The company...
Happy Hands Company has net profit margin 5.51%, total assets turnover 0.63, and equity multiplier 2.77. What is its return on shareholder equity (ROE) using DuPont analysis method
Gutierrez Company has four operating divisions. During the first quarter of 2014, the company reported aggregate income from operations of $213,000 and the following divisional results. Analysis...
What mode of transportation is involved in the movement of the greatest number of products? LO15-2
When contract is not complete at the end of the financial year, loss on incomplete contract is (a) transferred to profit and loss (b) debited to profit and loss (c) transferred to work-in-progress...
1. Analyze the facts of the case with respect to the AICPA Code and explain any perceived deviation from ethical standards. 2. Assume Miller Energy is considering bringing a lawsuit against KPMG for...
Harry inherited a residence from his mother when she died. The mother had purchased the residence 6 months prior to her death and had a tax basis of $566,000. When she died and the residence was...
Heat flow in a solid bounded by two conical surfaces (Fig. 11B.9). A solid object has the shape depicted in the figure. The conical surfaces 1 = constant and 2 = constant are held at temperatures T...
How does the quality of internal controls affect evidence?
Why are analytical procedures an important part of the planning process?
Which of the following costs would be likely to step up over time? (a) An increase in selling and distribution costs if a new product line is introduced (b) The salary of the companys managing...
Over the past 40 years, union membership has declined, and it continues to do so. Instead, many companies are turning to alternative dispute resolution. We know one of the best union avoidance...
Article "A Leader's Journey" by Pamela Kruger Photographs by Nigel Dickson. For this discussion, let's try and unpack the key factors that led to his transformation. 1. What are your key takeaways...
Describe the collaborative roles of the team leader and the team coach in helping a group of people come together to form a team. Recommend strategies for Alex as team leader to use in helping to...
a. Complete the table with all marginal totals and cell counts. b. Calculate the following probabilities. i. For a male to be a Republican. ii. For a voter to be female. iii. For a voter to be either...
1. Will the Coronavirus Pandemic Make Working from Home the New Normal?" Address the following below. Define the problem described in this case. What are the management, organization, and technology...
Based on Exhibits 57, in comparison to Company Y, Company X has greater: A. Leverage. B. Interest coverage. C. Operating profit margin. The following information relates EXHIBIT 5 Consolidated Income...
Nate prepares slides for his microscope. In 1 day he prepared 12 different slides. Which equation best represents y, the total number of slides Nate prepares in x days if he continues at this rate? A...
The following questions concern quality control standards. Choose the best response.a. The nature and extent of a public accounting firm?s quality control policies and procedures depend on: b. Which...
In the opening vignette, the concept of audit quality indicators (AQIs) was discussed. These AQIs are quantitative measures that provide insight into audit quality. The intent is to have firms...
What are the fundamental ethical principles for professional accountants? How can those principles aid in analyzing an ethical dilemma?
BE13.2 (LO 1), AP An inexperienced accountant for Silva Corporation showed the following in the income statement: net income \$337,500 and unrealized gain on availablefor-sale securities (before...
A start - up company is seeking $ 5 m for its Series A investment round. The start - up is expected to grow to $ 1 0 0 M in sales and $ 1 0 M in profit by year 5 . Comparable firms in the industry...
Here are the cash flows for a project under consideration: C 0 C 1 C 2 $8,010 +$5,940 +$20,160 a. Calculate the projects net present value for discount rates of 0, 50%, and 100%. (Round your answers...

Describe two audit techniques that the auditor should use to reduce the risk of financial statement misstatement

Question:

Step by Step Answer:

The types of evidence that should be collected are i compare the ...View the full answer

Auditing The Art and Science of Assurance Engagements

Students also viewed these Auditing questions