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(a) Large audits are usually divided into two phases, comprising the system assessment work and transaction testing carried out as an interim audit close to

image text in transcribed (a) Large audits are usually divided into two phases, comprising the system assessment work and transaction testing carried out as an interim audit close to the end of the year. The balance of the work and testing of items of statement of financial position is carried out at the final audit after the year end. (i) Audit work is spread across interim and final audit. Identify FOUR key benefits that may arise from spreading the audit work across interim and final audit. (ii) Explain TWO procedures that can be carried out during the interim audit and TWO audit procedures that can be carried out during the final audit. (b) Direct confirmation of balances for payables, receivables and bank account is an important technique used in determining material amounts in a company's statement of financial position. Required: a. You have just received the bank reconciliation statement. Explain the main audit work expected to be carried out by you on receipt of the bank reconciliation. b. Describe the audit procedures relating to the confirmation of receivable balances c. Management of an entity refused to allow the auditor to send a confirmation request to its customers. Briefly state and explain the steps the auditor should take in the circumstances

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