Question
Suppose that you are an auditor at a large accounting firm. On your audit assignment at a global company client, your manager asks you to
Suppose that you are an auditor at a large accounting firm. On your audit assignment at a global company client, your manager asks you to think of a procedure to test the client companys claim that they have $100 million in accounts receivable and only $20 million in accounts payable. The client company then says that they are in the best financial condition in the industry. a) Discuss which audit objectives the procedure is supposed to fulfill b) Suppose your boss drops by your office to ask you about what procedure you would recommend she conduct to test these assertions. What would you say, and why?
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