Question: Why is it generally more efficient to test ending account balances rather than testing transactions throughout the year? Explain why the efficiency might change in

Why is it generally more efficient to test ending account balances rather than testing transactions throughout the year? Explain why the efficiency might change in a computerized environment with effective internal controls.

Step by Step Solution

★★★★★

3.55 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

There are a number of reasons to believe it is more efficient to test account balances at year end r... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

222-B-A-A-B-R (209).docx

120 KBs Word File

Students Have Also Explored These Related Auditing Questions!

Why is it generally more difficult to establish the validity of a measure than its reliability?

Why is it generally necessary to add nonnegativity constraints to an optimization model? Wouldn't Solver automatically choose nonnegative values for the decision variable cells?

Why is it generally impossible to predict the rate law for a reaction on the basis of the chemical equation only?

Hi, I am taking accounting class (Auditing & Assurance Services). Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have solutions for...

Hi, I am struggling with my homework which is related to auditing class. Please provide original homework. Type up to two pages ( about 500-600 words) and must answer questions clearly. I have...

I need some *((familiar with Integrated Audit Practice case assignments))* to help me complete this assignment as soon as possible. There is each worksheet that needs to complete missing information....

One way that the auditor might achieve audit efficiency is to recognize the interrelationship between accounts. In many situations, evidence gathered in auditing a balance sheet account (asset,...

Need to change the attached to my own words. Let me know if any questions 1. What is the difference between an information technology general computing control and an automated application control?...

In its income statement for the year ended December 31, 2012, Misra Company reported the following condensed data. Administrative expenses ........ $465,000 Loss on disposal of Cost of goods sold .....

My Notes Ask Your Teacher Two parallel conducting plates are separated by a distance d x = 7.50 cm from the plate B is 72.9 V. See diagram below. 12.0 cm. Plate B, which is at a higher potential has...

More Portfolio Variance ( LO 4 , CFA 3 ) In Problem 1 2 , what is the standard deviation if the correlation is 1 ? 0 ? - 1 ? As the correlation declines from 1 to - 1 here, what do you see happening...

What competitive advantages would Amazon have over Wal-Mart stores in doing business outside the United States?

What is monitoring? Give two examples of internal control monitoring and explain how they would be used by management.

What types of controls might a large-scale organization use to ensure that its divisional management is conducting business in a manner that will best achieve the objectives of the business? What...

Define the following terms: Deficiency in internal controls over financial reporting Significant deficiency in internal controls over financial reporting Material weakness in internal controls...

Estimate a multiple linear regression relationship with the U.K. stock returns as the dependent variable, and U.K. Government Bond yield (Interest rate), U.S. Stock Returns, and Japan Stock Returns...

A machine that cost $ 1 2 0 , 0 0 0 3 years ago can be sold now for $ 5 2 , 7 5 0 . Its market value is expected to be $ 4 0 , 0 0 0 and $ 2 0 , 0 0 0 1 year and 2 years from now, respectively. Its...

Answer using JASP Software, etc. Is there a difference in profit in the first quarter compared to the second quarter for investor's portfolios? Each participant's investment portfolio was evaluated...