When the auditor determines that controls are not operating effectively, the auditor needs to consider the kind
Question:
When the auditor determines that controls are not operating effectively, the auditor needs to consider the kind of misstatements that could occur, how they might occur, and how the auditor would adjust substantive audit procedures Assume that the authorization process for ordering inventory was found to contain a material weakness. Identify the accounts that could contain misstatements, how the misstatements might occur, and how the auditor would adjust substantive audit procedures because of the material weakness.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 63% (19 reviews)
If the authorization control is not working effectively there could be a unauthorized ...View the full answer
Answered By
Ray Buslon
I have learned from students who have tutoring experience, that the tutors’ job was mainly helping the student with his/ her homework, and teaching the material their tutee didn’t understand ( bad idea). The tutor is not a teacher. The teacher lectures and the tutor tutors. When the tutee didn’t know how to solve a homework math problem, the tutor showed all the steps needed to solve the problem and then the tutee solved a similar problem by mimicking the steps that he or she learned from the tutor. In short, I learned from these students that many, too many, parents and students equate a tutor with “a homework machine.” Parents and tutees consider a tutor to be a good tutor when the student’s grade improves. In these situations we need to remember that a huge part of the points the tutee gets on homework is not the tutee’s points, but the tutor’s points. Tutors as described above are really doing the students’ homework themselves which is a disservice to the tutees.
The main goal of tutoring is to help a tutee to become a lifelong independent learner. Mimicking the steps shown by a tutor will not help a tutee become an independent learner and will not help the tutee learn critical thinking skills.
0.00
0 Reviews
10+ Question Solved
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Question Posted:
Students also viewed these Auditing questions
-
The chapter emphasizes that when the auditor determines that controls are not working, the auditor needs to anticipate (a) What kind of misstatements could occur in the financial statements, (b) How...
-
A bottle of allyl bromide was found to contain a large amount of an impurity. A careful distillation separated the impurity, which has the molecular formula C3H6O.The following 13C NMR spectrum of...
-
The auditor determines that there may be misstatements in the inventory and cost of goods sold account. During the conduct of the audit, the auditor found a material weakness in internal controls in...
-
The data in the chart below is for the distance (in cm) to the near point, the point nearest the eye at which the eye can accurately focus, at a persons age. Age (years) Near Point (cm) 10 7.5 20 9...
-
A mass of 15 kg of air in a piston - cylinder device is heated from 25 to 77oC by passing current through a resistance heater inside the cylinder. The pressure inside the cylinder is held constant at...
-
A data set has a mean of 5 and a median of 7. Would you expect this data set to be skewed to the right, skewed to the left, or approximately symmetric?
-
Presented here are the accounts of Town and Country Realty Corporation for the year ended December 31, 2011. Requirements 1. Prepare Town and Country Realty Corporations income statement. 2. Prepare...
-
Analyzing and Interpreting Return on Assets Tiffany & Co. is one of the worlds premier jewelers and a designer of other fine gifts and housewares. Presented here are selected income statement and...
-
What are the strategic implications of disruptive technologies such as blockchain, quantum computing, and advanced robotics on traditional business models, and how can firms proactively adapt their...
-
Jai is a trader. The following balances appeared in his books on 31 March 208. $ Sales .........................................86,000 Purchases ................................51,500 Bank overdraft...
-
What are the external auditor testing requirements of internal controls for? a. Large, publicly held companies? b. Nonpublic companies and small, publicly held companies?
-
In analyzing the results of the tests of controls, there are two potential outcomes: (a) Deficiencies are identified (b) Deficiencies are not identified. What are alternative courses of action for...
-
In 12s complement base 12, how would you know if a number is positive or negative?
-
A health food restaurant is expanding its menu to include plant-based options. How would they describe their expanded offerings in their business plan to appeal to health-conscious consumers?
-
Do a three-year business plan for a fictional law-firm start-up. The law firm may involve one or more lawyers and the practice areas must relate to business law. Include: Practice Overview Practice...
-
Mr Byfield in 2016 formed the Company called "Fear No Pestilence Crop Sprayers Ltd". The core function of this business was to spray crops from the air. Mr Byfield owned 3,000 of the Company's 4,000...
-
Find an article. Since this is a microeconomics course, the article should relate to the behavior of individuals, governments, and firms in making decisions regarding the allocation of scarce...
-
Mercy West clinic uses patient visits as its measure of activity. The clinic has provided the following report: Mercy west clinic comparison of Planning Budget to Actual Results For the month ended...
-
Arrange the following orbitals for the hydrogen atom in order of increasing energy: 1 s , 4d xy , 3 s , 4d yz , 3p y , 4 s , 4p x .
-
Repeat Exercise 16.6 using the t-test of the coefficient of correlation. Is this result identical to the one you produced in Exercise 16.6?
-
The wave function for the first excited state of hydrogen \(n=2, \ell=0\) is \[\psi(r)=\frac{1}{4 \sqrt{2 a_{0}^{3} \pi}}\left(2-\frac{r}{a_{0}}ight) e^{-\frac{r}{2 a_{0}}}\] Take the reduced mass to...
-
Staff Accounting Bulletin (SAB) No. 108 articulates guidance on applying the dual approach to evaluating uncorrected misstatements. Under the dual approach, a misstatement must be corrected if it is...
-
Assume that a client has a recurring late cutoff error. Prior-year sales included $10 million of current-year sales, and current-year sales include $12 million of next year sales. a. What is the...
-
Assume that an auditor finds a material misstatement regarding the financial statements while performing substantive tests of the account balance. More important, the auditor concludes that the...
-
A manfred County Psychologist is researching a possible relationship between abuse received as a child and later adult drinking habits. She interviewed a random sample of County adults and asked each...
-
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company s costing system and do what you...
-
Tim has worked for one employer his entire career. While he was working, he participated in the employer's defined contribution plan [ traditional 4 0 1 ( k ) ] . At the end of 2 0 2 3 , Tim retires....
Study smarter with the SolutionInn App