Andrew is in charge of auditing internal controls over the investments section on the year-end Gotham City
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Required:
a. Which assertion does the control relate to concerning the investments account?
b. What is an appropriate test of the control? How can Andrew determine whether the control exists and is effectively designed?
c. Assume that the control you described in (2) exists and is effectively designed. Can Andrew use a dual purpose test that tests the operating effectiveness of the control and also provides evidence for the financial statement audit of the investments account? If yes, what test will Andrew use? What evidence does the dual purpose test provide for the financial statement audit?
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Related Book For
Auditing and Assurance Services Understanding the Integrated Audit
ISBN: 978-0471726340
1st edition
Authors: Karen L. Hooks
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