Explain how GAS can test for control effectiveness. For example, describe how an auditor could use GAS

Question:

Explain how GAS can test for control effectiveness. For example, describe how an auditor could use GAS to identify whether a company has allowed credit to customers that do not meet its credit policies.

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

Step by Step Answer:

Related Book For book-img-for-question

Auditing A Business Risk Approach

ISBN: 978-0538476232

8th edition

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

See More Books

Question Posted: Dec 16, 2016 01:12 PM

See More Questions

How can McDonalds use its powerful brand name to help improve its effectiveness? The McDonald brothers first restaurant was founded in 1937 just east of Pasadena, California. It didnt serve...
Auditing standards indicate that if control risk is assessed as low or moderate, the auditor must gain assurance that the controls are operating effectively. Required a. What is meant by testing the...
Multiple- Choice 1. The Sarbanes- Oxley Act of 2002 requires management to include a report on the effectiveness of ICFR in the entitys annual report. It also requires auditors to report on the...
Write a method remove() that takes a linked-list Node and a string key as its arguments and removes every node in the list whose item field is equal to key.
The Denver Metal Shop purchased a stamping machine for $157,000 on March 1, 2009. The machine is expected to have a useful life of 10 years, a salvage value of $27,000, a production of 250,000 units...
Why is the concept of auditing convergence important? Will international harmonization of auditing standards be more or less difficult to achieve than international harmonization of accounting...
How could you use expectancy theory to increase your own motivation level? LO.1
Review exercise-calculate net income. At the beginning of the current fiscal year, the balance sheet of Cummings Co. showed liabilities of $438,000. During the year, liabilities decreased by $72,000;...
Suppose an investor has a $5 million long position in T-bond futures. The investors broker requires a maintenance margin of 2.52 percent. What is the amount currently in the investors account?
The file S02_03.xlsx contains data from a survey of 399 people regarding a government environmental policy. a. Create a crosstabs and an associated column chart for Gender versus Opinion. Express the...
An auditor evaluating a MUS sample of accounts receivable confirmations receives a confirmation response and has to determine whether the difference reported is due to (a) An error on the part of the...
In which ways can GAS assist the auditor in planning and executing statistical sampling?
Why should a project align with an organizations strategy, vision, and mission? AppendixLO1
When CH4(g) reacts with O2(g) to form CO2(g) and H2O(g), 192 kcal of energy are evolved for each mole of CH4(g) that reacts. Write a balanced equation for the reaction with an energy term in kcal as...
Ben Rogers, Judy Wilkinson, and Henry Walker were the partnership dentists. Ben Rogers became insolvent because of real estate investments. So, Judy Wilkinson and Henry Walker had to then pay the...
A random sample of 10 subjects have weights with a standard deviation of 10.8148 kg. What is the variance of their weights? Be sure to include the appropriate units with the result.
of stion 1. Harmonic Test II. Root Test III. Ratio Test Consider the series 8 = 72 Which one of the following tests can be used to determine whether it is convergent or divergent? IV. Integral Test...
Pharaoh company obtains $44,800 in cash by signing a 7%, 6 month, $44,800 note payable to First Bank on July 1. Pharoah's fiscal year ends on September 30. What information should be reported for the...
Ceteris paribus, when the supply of beef increases, the quantity of beef sold will change by a smaller amount a. The more elastic is the demand for beef. b. The more inelastic is the demand for beef....
SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended...
Address the following questions about the confirmation of customers' accounts receivable. a. Why do confirmations not typically provide reliable evidence about the completeness assertion? b. What is...
Read the following scenario about Strang Corporation and identify the substantive procedures that the CPA (Stanley) should perform to determine whether lapping exists. Do not discuss deficiencies in...
Your audit client, Madison, Inc., has a computerized accounts receivable system. There are two master files, a customer data file and an unpaid invoice file. The customer data file contains the...
During 2024, its first year of operations, Hollis Industries recorded sales of $11,900,000 and experienced returns of $760,000. Cost of goods sold totaled $7,140,000 (60% of sales). The company...
What is the value of a 15% coupon bond with 11% return? Is it a discount or a premium bond?
A manufacturer with a December 31 taxation year end sells new machinery for $50,000 on January 2, 2022. The cost of the machinery is $20,000. The terms of the sale require an initial payment of...

Explain how GAS can test for control effectiveness. For example, describe how an auditor could use GAS

Question:

Step by Step Answer:

GAS has the ability to assist the auditor in evaluating whether or not internal controls a...View the full answer

Auditing A Business Risk Approach

Students also viewed these Auditing questions