Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(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
(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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started